By Stanley Lifestyles is making waves as it launches its IPO today. The IPO has been much anticipated, marking the third mainboard IPO to hit D-Street this week. Investors are keen to see how this super-premium and luxury furniture brand fares in the market. The company has set a price band of ₹351-369 per equity share, with a minimum bid of 40 shares.
The IPO has already attracted significant attention from anchor investors, raising ₹161.10 crore ahead of the public issue. This strong initial response reflects the confidence of institutional investors in Stanley Lifestyles’ business model and growth prospects. The subscription period for the IPO is open until June 25, giving potential investors a few days to make their bids.
Stanley Lifestyles is a well-established brand in India’s home furnishings sector. According to the RedSeer Report, it is one of the few home-grown super-premium and luxury consumer companies that operate on a large scale in both production and retail. The company’s robust market position is further highlighted by its rank as the fourth largest player in India’s home furnishings sector for the fiscal year 2023. This solid market presence, combined with a strong brand recall, positions Stanley Lifestyles as a formidable player in the luxury furniture market.
The IPO’s allocation strategy reserves 50% of the shares for qualified institutional buyers, 15% for non-institutional institutional investors, and 35% for retail investors. This balanced approach ensures that a wide range of investors can participate, from large institutional entities to individual retail investors.
One of the critical aspects that potential investors are looking at is the GMP. As of today, Stanley IPO’s GMP stands at +₹162. This indicates that shares of Stanley Lifestyles are trading at a premium of ₹162 in the grey market, suggesting an expected listing price of ₹531 apiece. This price is 43.9% higher than the upper end of the IPO price band, reflecting strong demand and positive market sentiment.
Analysts from various brokerages have weighed in on the IPO. Anand Rathi Research recommends a “SUBSCRIBE – long term” rating, citing the company’s potential for business improvement, industry tailwinds, and scalability. They highlight that despite the rich valuation, the company’s strong market position and growth prospects make it a worthwhile long-term investment.
Indsec Securities also assigns a “Subscribe” rating, noting the company’s impressive growth metrics. They point out that Stanley Lifestyles’ revenue increased at a CAGR of 46.3% from FY21 to FY23, driven by retail sales and store growth. The firm’s EBITDA and PAT also grew significantly during this period, showcasing robust financial performance.
The proceeds from the IPO will be used primarily for expanding the company’s store network and acquiring new machinery and equipment. Between 2025 and 2027, Stanley Lifestyles plans to open 24 new stores in key markets such as Delhi, Tamil Nadu, Telangana, and Maharashtra. This expansion strategy aims to capitalize on the growing demand for luxury furniture in these regions, further strengthening the company’s market position.
The book-running lead managers for the Stanley IPO are Axis Capital Limited, ICICI Securities Limited, Jm Financial Limited, and SBI Capital Markets Limited, with Kfin Technologies Limited serving as the registrar. Their involvement brings credibility and confidence to the IPO process, ensuring that it is managed professionally and efficiently.
Stanley Lifestyles’ IPO presents a compelling opportunity for investors looking to tap into the luxury furniture market in India. With a strong brand, solid market position, and ambitious growth plans, the company is well-positioned for future success. However, potential investors should carefully consider the high valuation and the inherent risks associated with the luxury market before making their decision.
