Stanley Lifestyles IPO subscription status: On the last day of subscriptions, non-institutional investors led the overwhelming response to luxury furniture firm Stanley Lifestyles' initial public offering, which was followed by retail investors. Stanley IPO subscription status is 96.98 times,as per BSE data.
The initial share sale got bids for 99,32,30,160 shares against 1,02,41,507 shares on offer, as per BSE data.
The portion for non-institutional investors got subscribed 119.52 times while the category for retail investors received 19.21 times subscription. The Qualified Institutional Buyers (QIBs) booked 222.10 times.
On Monday's second day of bidding, the premium furniture business Stanley Lifestyles garnered 5.22 times as many subscriptions for its initial publicoffer.
The retail investor quota was subscribed to 6.10 times, whilst the share for non-institutional investors received 8.85 subscriptions. 74% of subscriptions were made to the category designated for QIBs.
On Friday, the first day of subscription, Stanley IPO received 1.43 subscriptions. A little more than ₹161 crore has been raised by the business from anchor investors.
Stanley Lifestyles IPO, which opened for subscription on Friday, June 21, end today (Tuesday, June 25). Stanley Lifestyles IPO allotment date is scheduled for tomorrow (Wednesday, June 26). Bids can be made for a minimum of 40 equity shares and multiples of 40 equity shares thereafter.
Stanley IPO has reserved 50% of the shares for qualified institutional buyers (QIB), 15% for non-institutional institutional investors (NII), and 35% for retail investors.
According to Arun Kejriwal, founder of Kejriwal Research and Investment Services, Stanley Lifestyles Ltd. is into bespoke furniture of the upper end, and more than 55–57% of its revenue comes from sofas and recliners. The size and scale of this business are small— ₹400 crore in revenue, multiple showrooms, across metros, and so on. On the manufacturing front, the company has all the capabilities and provides top-end products, but while we say that there is disposable income growth, etc., it doesn't seem to translate into that kind of revenue for the company.
However, from a market perspective, investors look at the business opportunity and its first-of-its kind, premium bespoke, luxury, furniture maker origin, which is coming to the market. So, there's a healthy grey market premium that gives you the opportunity to make money. So apply for the issue.
Dilip claims that the business is a major force in the premium-luxury furnishings market. Between FY21 and FY23, it showed consistent growth in both its top and bottom lines. Looking at the issue's annualised profits for FY24, it is over priced. Moderate funds can be long-term invested in by knowledgeable and excess cash investors.
According to the brokerage, the company is engaged in the production and sale of upscale furniture. It operates 62 outlets throughout 25 Indian cities. In the upcoming years, it is anticipated that the Indian market for organised furniture retail and affluent homes would expand dramatically, providing Stanley Lifestyles with a favourable market. But these items' high price and their erratic demand or shifting tastes might be detrimental to its business. The issue may be chosen by long-term investors.
Stanley Lifestyles IPO, comprises a fresh issue of ₹200 crore, and an offer-for-sale (OFS) of 9,133,454 equity shares by the promoters and shareholders.
In the OFS, promoter selling shareholder, Sunil Suresh and Shubha Sunil will offload up to 1,182,000 equity shares each. The other selling shareholders are Oman India Joint Investment Fund II (5,544,454 equity shares), Kiran Bhanu Vuppalapat (1,000,000 equity shares), and Sridevi Venkata Vuppalapati (225,000 equity shares).
The proceeds from the new issue will be used to open more stores and buy new machinery and equipment. Between 2025 and 2027, the company plans to open 24 new stores in Delhi, Tamil Nadu, Telangana, and Maharashtra via its subsidiaries ABS Seating Pvt Ltd, Sana Lifestyles Ltd, Stanley Retail Ltd, Shrasta Décor Pvt Ltd, and Staras Seating Pvt Ltd.
The Stanley IPO's book-running lead managers are Axis Capital Limited, ICICI Securities Limited, Jm Financial Limited, and SBI Capital Markets Limited, with Kfin Technologies Limited serving as the registrar.
Stanley IPO GMP today is +167. This indicates Stanley Lifestyles share price were trading at a premium of ₹167 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, Stanley Lifestyles IPO expected listing price was indicated at ₹536 apiece, which is 45.26% higher than the IPO price of ₹369.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
