Stanley Lifestyles makes warm listing

Shares of Stanley Lifestyles on Friday made a decent debut at the bourses by gaining 35 per cent over IPO price.

Against the IPO price of ₹369, the stock was listed at ₹499 on the BSE, a premium of 35.23 per cent, and at ₹494.95 on the NSE, a premium of 34.13 per cent. The stock closed at ₹474 on the BSE, a gain of 28.46 over the IPO price. On the NSE, the shares closed at ₹479, up 29.8 per cent.

Sunil Suresh, Managing Director, Stanley Lifestyles, in a release, said, “As we embark on this new chapter, we remain committed to delivering value to our shareholders and driving sustainable growth. We look forward to the opportunities that lie ahead and are excited to continue our journey with the support of our investors and partners.”

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The initial public offering of the Bengaluru-based Stanley Lifestyles was subscribed 96.98 times, thanks mainly to qualified institutional buyers and non-institutional investors (HNIs). The portion reserved for HNIs was subscribed over 119.52 times, while that for retail investors was subscribed 19.21 times. However, the QIB portion saw aggressive bidding on the last day, taking the subscription to 222.10 times.

The ₹537-crore IPO came out with a price band of ₹351-369. The issue comprised a fresh issue of ₹200 crore and an offer-for-sale of up to 91,33,454 shares by the promoters and other selling shareholders. 

Investor confidence

As part of the IPO process, the company has garnered ₹161.10 crore from anchor investors. The company has allocated 43,66,051 shares at ₹369 a share to a number of domestic and foreign institutions, including SBI MF, SBI AF, Nippon MF, ICICI Pru MF, HDFC MF, Quant MF, SBI Life Insurance, Loomis and Sayles, Motilal Oswal MF, Max Life, Wells Capital, Birla Life, Templeton, Bandhan MF, and Param Capital.

The net proceeds from the fresh equity issue will be allocated in the following manner — ₹140.16 crore for investments in subsidiaries, ₹6.66 crore for capital expenditure on machinery and equipment, and the remainder for general corporate purposes.

Shivani Nyati, Head of Wealth, Swastika Investmart, said, while this performance is undoubtedly positive, it falls short of pre-listing expectations that likely anticipated an even higher premium due to the overwhelming investor response.

“The strong listing signifies investor confidence in Stanley Lifestyles’ established brand, diverse product portfolio, and consistent financial performance. However, the high IPO valuation and identified risks, such as dependence on sofa and recliner sales and geographical concentration, warrant careful consideration,” he said.

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