Stanley Lifestyles shares list at 35% premium over issue price

The shares of Stanley Lifestyles debuted on the stock exchanges with a premium of 35.23% on Friday. The stock listed at Rs 499 on BSE, against an offer price of Rs 369.

On NSE, the stock listed at Rs 494.95, up 34.13%.

Ahead of the listing, the company's shares were trading with a premium of 179 in the unlisted market.


The net proceeds from the fresh issue will be used for expenditure for opening the new stores, opening the anchor stores and for renovation of existing stores.

Stanley Lifestyles is a super-premium and luxury furniture brand in India and among the few home-grown super-premium and luxury consumer brands in India operating at scale in terms of manufacturing as well as retail operations.

The company retails its furniture products under the Stanley brand with a wide range of home solutions offerings, such as sofas, arm chairs, kitchen cabinets, beds, mattresses and pillows, amongst others.

Analysts say Stanley Lifestyles leads the Indian luxury furniture retail space and is an indirect play on the booming luxury real-estate industry. Exploding HNI count and a potentially higher furniture mix in new house spends should drive 20-25% mid-term industry CAGR.

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In FY23, the company's revenue from operations grew to Rs 69.51 crore from Rs 67.44 crore in the preceding financial year. Meanwhile, profit after tax jumped multifold to Rs 15.80 crore from just Rs 4.12 crore a year earlier.

"Our checks suggest muted H1 growth due to RERA-related delays, but post-IPO market capitalization of Rs 2100 crore is promising, providing rerating scope on growth pickup in H2. Traction in new metros and expansion of sofas and more in tier-1/2 cities are potential upsides," said Emkay Global.

Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets acted as the book running lead managers for the IPO and Kfin Technologies was the registrar.
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