Luxury furniture brand Stanley Lifestyles has filed its preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 200 crore and an offer-for-sale (OFS) component of 91.33 lakh equity shares by the company’s promoters, investor and other shareholders, as per the draft red herring prospectus (DRHP) filed on Monday. The OFS consists of sale of 11.82 lakh shares each by promoters — Sunil Suresh and Shubha Sunil, up to 55.44 lakh equity shares by Oman India Joint Investment Fund II, up to 10 lakh shares by Kiran Bhanu Vuppalapati and up to 2.25 lakh shares by Sridevi Venkata Vuppalapati.
The company may also consider a pre-IPO placement aggregating up to Rs 40 crore and if such placement is completed, the size of the fresh issue will be reduced. The net proceeds from the fresh issue to the tune of Rs 90.13 crore will be used by the company for expenditure for opening the new stores, Rs 39.99 crore expenditure for opening the anchor stores and Rs 10.04 crore expenditure for renovation of existing stores. Funds to the tune of Rs 8.18 crore for funding the capital expenditure requirements for purchase of new machinery and equipment by the company and its material subsidiary, SOSL (Stanley OEM Sofas Ltd) and for general corporate purposes.
The Bengaluru-based Stanley Lifestyles is a luxury furniture brand with a market share of 5.61 per cent in terms of revenue. It is also among the few home-grown luxury consumer brands in the country operating at scale in terms of manufacturing as well as retail operations. The company operates two manufacturing facilities in Bengaluru. Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets Ltd are the book running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE. For FY23, the company’s revenue from operations rose to Rs 419 crore from Rs 292.20 crore a year ago, while net profit increased to Rs 34.98 crore, against Rs 23.22 crore a year back.