Stanley Lifestyles IPO- Investment Rationale, Issue Details, Financials, Strength, Risks And More: Anand Rathi

Anand Rathi Report

Stanley Lifestyles Ltd. will launch its initial public offering on June 21 and the offer will close for subscription on June 25.

The luxury furniture manufacturer has fixed the price band in the range of Rs 351 to Rs 369 Apiece. The minimum lot size for bidding will be 40 shares.

The Rs 537 crore maiden share sale comprises of a fresh issue of Rs 200 crore equity shares and an offer for sale of up to 91.33 lakh equity shares.

Objects of the Issue

Fresh issue:

• Investment in certain Subsidiaries.

• Funding the capital expenditure requirements for purchase of new machinery and equipment by the company and the

• Material Subsidiary, Stanley OEM Sofas Ltd.

• General corporate purposes.

Valuation and outlook

Stanley Lifestyles is a super-premium and luxury furniture brand in India and among the few home-grown super premium and luxury consumer brands in India operating at scale in terms of manufacturing as well as retail operations.

They are the fourth largest player in the home furniture segment in India in terms of revenue in Fiscal 2023.

On valuation front, at an upper band, company is richely priced at price/earning of 60 times post issue of equity shares on FY23 earning basis, the company has no listed peers.

We believe that company has a scope of business improvement on the back of industry tailwinds, brand recall and business scalability. Thus, we recommend an “Subscribe – long term” rating to the IPO.

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