Stanley Lifestyles IPO: Subscription Details, Market Position, and Expected Listing Price
Overview of Stanley Lifestyles IPO
Stanley Lifestyles will launch its initial public offering (IPO) today, June 21, marking its debut on the stock market. This is the third mainboard IPO on Dalal Street, India’s financial hub this week.
Details of Stanley Lifestyles IPO
The IPO has set a price band of ₹351 to ₹369 per equity share, with a face value of ₹2 per share. The subscription period runs until June 25, and bids can be made for a minimum of 40 shares, with subsequent bids in multiples of 40.
Allocation of IPO Shares
Stanley IPO has allocated 50% of its shares to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors.
Company Profile and Market Position
Stanley Lifestyles is a prominent Indian brand known for its super-premium and luxury furniture offerings. Based on sales for the fiscal year 2023, it ranks as the fourth largest player in India’s home furnishings sector. Unlike its competitors, Stanley is unique in that it has no listed counterparts in India or abroad.
Subscription Details
On its first day of subscription, Stanley Lifestyles IPO received bids for 1.44 times the shares offered. Non-institutional investors oversubscribed by 2.01 times, while retail investors showed 1.81 times subscriptions. Qualified institutional buyers (QIBs) subscribed to 30% of their allocated portion.
Brokerage Recommendations
- Anand Rathi Research: Despite its high valuation, they view Stanley as a significant player in India’s home furnishings sector and suggest a long-term “SUBSCRIBE” rating.
- Indsec Securities: highlights Stanley’s robust revenue growth and profitability prospects, recommending investors “Subscribe” based on expected growth driven by expansion plans and favorable market conditions.
Utilization of IPO Proceeds
The IPO comprises a fresh issue of ₹200 crore and an offer-for-sale (OFS) of existing shares by promoters and shareholders. Between 2025 and 2027, the funds raised will primarily finance the expansion of stores and purchase of new equipment.
GMP and Expected Listing Price
In the grey market, Stanley’s IPO trades at a premium of ₹162, indicating strong investor interest. The expected listing price post-IPO is estimated at ₹531 per share, significantly higher than the upper end of the IPO price band of ₹369.
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Conclusion
Stanley Lifestyles IPO has generated considerable interest among investors, buoyed by its unique market position, growth prospects, and strong demand in the home furnishings sector. Brokerages recommend subscribing to the IPO, albeit cautioning about its relatively high valuation.
