Stanley Lifestyles : Impressive 34.13% Premium Market Debut.

Stanley Lifestyles, a leading Indian luxury furniture manufacturer, made a stunning debut on the NSE platform today, trading at Rs. 494.95 per share. This marks a 34.13% premium over the issue price of Rs. 369 per share, indicating strong investor trust in the company’s established brand.

IPO Details and Performance

The Stanley Lifestyles IPO was offered for bidding from June 21 to June 25, with share allocation ending on June 26. The IPO was priced between Rs 351 and Rs 369 per share, raising Rs 537.02 crores through a combination of new issues and an offer for sale. The new issuance includes 0.54 crore shares worth Rs 200 crores, whereas the offer for sale included 0.91 crore shares valued at Rs 337.02 crores.

On the final day of bidding, both retail and non-institutional investors expressed strong interest in the IPO. The offering received bids for 99.32 crore equity shares against a total offer size of 1.02 crore equity shares, yielding an impressive subscription rate of 96.98 times. Non-institutional investors subscribed at 119.52 times their assigned quota, while qualified institutional buyers (QIBs) received 222.1 subscriptions.

Allocation Breakdown

The IPO allocation was designed with 50% earmarked for QIBs, including anchor investors, 35% for retail investors, and the remaining 15% for non-institutional investors. The book-running lead managers for the IPO included Axis Capital Ltd, ICICI Securities Ltd, JM Financial Ltd, and SBI Capital Markets Ltd. KFin Technologies Ltd acted as the IPO registrar.

Market Response and Expert Insights

Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, commented on the offering, saying, “Stanley Lifestyles, the premier Indian luxury furniture brand, had a significant debut on the stock exchanges, listing at Rs. 494.95 per share. This represents a remarkable 34.13% increase over the issue price of Rs. 369. While this result is clearly positive, it falls short of pre-listing expectations.”

Nyati added, “The strong listing demonstrates investor confidence in Stanley Lifestyles’ established brand, diverse product portfolio, and consistent financial performance.” However, the high IPO valuation and recognized risks, such as reliance on sofa and recliner sales and geographic concentration, call for cautious evaluation. Existing investors may keep their shares with a predetermined stop loss of 450.”

Company Profiles and Market Positions

Stanley Lifestyles is well recognized as one of India’s leading super-premium and luxury furniture brands. The company has a substantial presence in the local market and is well-known for its broad production and retail experience. According to the Redeer Report, Stanley Lifestyles was the fourth largest company in India’s home furnishings category by revenue in Fiscal 2023. It stands out as one of the first Indian companies to enter the super-premium and luxury furniture markets.

The company’s main “Stanley” label offers a wide range of items to meet varied consumer expectations in the super-premium, luxury, and ultra-luxury markets.