Stanley Lifestyles Limited IPO

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They are a super-premium and luxury furniture brand in India, recognized as one of the few home-grown brands operating at scale in both manufacturing and retail. They are the fourth largest player in the home furniture segment in India in terms of revenue for Fiscal 2023. They pride themselves on being among the pioneers in the Indian super-premium and luxury furniture segment, offering products across a wide range of price points, including super-premium, luxury, and ultra-luxury categories.

Brand and Marketing

The “Stanley” Brand

They retail their luxury furniture products under the “Stanley” brand. Over the years, they have built strong brand recognition and customer loyalty through their high-quality products and strategic marketing campaigns. Some of their notable marketing initiatives include “Beautiful Living,” “Design Glamour,” “Luxury Unlimited,” and “Bed of Dreams.” They believe their customers serve as their ambassadors, generating publicity for the Stanley brand through testimonials, endorsements, and word-of-mouth advertising.

Company Journey and Evolution

Their journey began with providing car seat leather upholstery services for leading global automotive brands. Leveraging this experience, their promoters transitioned to retailing luxury furniture in India, opening their first retail store in Bengaluru, Karnataka, in 2011. Over the years, they have evolved from a sales-driven model to design-led operations, becoming a comprehensive provider of home solutions. They now offer a wide range of home solutions, including sofas, armchairs, kitchen cabinets, beds, mattresses, and pillows, establishing themselves as the only super-premium and luxury Indian brand to provide such a diverse range of home solutions.

Conclusion

With a strong market position, significant financial growth, and a well-recognized brand, Stanley continues to lead the super-premium and luxury furniture segment in India. Their commitment to quality, design innovation, and customer satisfaction drives their success and positions them well for continued growth and expansion in the luxury home solutions market.

Objects of the Stanley Lifestyles Limited IPO:

The company proposes to utilize the Net Proceeds towards the funding of the following objects: i. Expenditure for opening new stores under the formats of "Stanley Level Next", "Stanley Boutique" and "Sofas & More by Stanley" ("New Stores"); ii. Expenditure for opening anchor stores ("Anchor Stores"); iii. Expenditure for the renovation of existing stores under the formats of "Stanley Level Next", "Stanley Boutique" and "Sofas & More by Stanley" ("Existing Stores"); iv. Funding the capital expenditure requirements for purchasing new machinery and equipment by the company and Material Subsidiary, SOSL; and v. General corporate purposes. Total number of shares issue :- i. Fresh issue is 5,420,054 shares, ii. Offer for sale is 9,133,454 shares.
DRHP of Stanley Lifestyles Limited IPO
RHP of Stanley Lifestyles Limited IPO

Stanley Lifestyles Limited IPO Details:

Open Date: Jun 21 2024
Close Date: Jun 25 2024
Total Shares: 14,553,508
Face Value: ₹ 2 Per Equity Share
Issue Size: 537.02 Cr.
Lot Size: 40 Shares
Issue Price: ₹ 351 - 369 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jun 28 2024

Promoters And Management:

Sunil Suresh is the Managing Director of the Company. He has passed S.S.L.C examination undertaken by Karnataka Secondary Education Examination Board. He has been associated with the Company as a promoter and a director since October 11, 2007. Prior to the incorporation of the Company, he was associated with Stanley Seating, which was engaged in the business of manufacturing car seat leather upholstery. Shubha Sunil is the Whole Time Director of the Company. She has cleared the bachelor’s of science examination held by Bangalore University, Karnataka. She holds a certificate of completion of the INSEAD leadership programme for senior executives from INSEAD. She has been associated with the Company as a promoter and director since October 11, 2007. Prior to the incorporation of the Company, she was associated with Stanley Seating, which was engaged in the business of manufacturing car seat leather upholstery. Vishal Verma is a Non-Executive Nominee Director of the Company. He holds a master’s degree in business administration from Indian Institute of Foreign Trade, New Delhi. He has over 18 years of experience including 15 years on the buy side in private equity funds. He currently works as an Investment Director with Oman India Joint Investment Fund Management Company Private Limited and has been with the fund since December 3, 2012. Prior to his current organisation, he worked with ICICI Bank Limited.

Financials of Stanley Lifestyles Limited IPO:

Particulars ( In Crore )
2021
2022
2023
9M-FY24
Revenue from Operations 196 292 419 313
Other Income 6 6 7 9
Total Revenue 202 298 426 322
Cost of Material Consumed 90 146 204 138
Purchase of stock-in-trade 5 20 11 24
Changes in inventories 2 -22 -11 -15
Employees Benefit Expenses 27 34 49 42
Other Expenses 41 55 83 66
EBITDA 36 65 89 67
OPM (%) 17.70% 21.68% 20.99% 20.71%
Depreciation & Amortisation 21 22 28 28
EBIT 15 43 61 39
Finance Cost 9 11 15 14
PBT 6 32 46 25
Tax 4 9 11 6
PAT 2 23 35 19
NPM (%) 0.95% 7.80% 8.22% 5.80%
No.of Shares 5.70 5.70 5.70 5.70
EPS 0.33 4.07 6.13 3.27

Comparison With Peers:

Note :- There are no listed companies in India that engage in a business similar to this Company.

Recommendation on Stanley Lifestyles Limited IPO:

1. They are a super-premium and luxury furniture brand in India, distinguished as one of the few home-grown brands operating at scale in both manufacturing and retail sectors. They are the fourth-largest player in the home furniture segment in India by revenue in Fiscal 2023. We were among the pioneering Indian companies to venture into the super-premium and luxury furniture segment and one of the few present across various price points, including super-premium, luxury, and ultra-luxury segments. 2. Brand and Product Portfolio Brand:- Stanley  Taglines and Campaigns:- "Beautiful Living," "Design Glamour," "Luxury Unlimited," and "Bed of Dreams" 3. Product Range: i. Sofas                                    ii. Armchairs                               iii. Kitchen cabinets iv. Beds                                    v. Mattresses                              vi. Pillows vii. Other home solutions They are the only super-premium and luxury Indian brand offering such a comprehensive range of home solutions. 4. Market and Competition The luxury and super-premium furniture market in India is highly competitive and segmented, with both unbranded and branded players vying for market share. European brands are significant competitors, designing, manufacturing, and importing their products into India. 5. The Revenue has Increased from Rs.196 Crores in FY21 to Rs.419 Crores in FY23. 6. The EBITDA has Increased from 36 Crores in FY21 to 89 Crores in FY23. 7. The PAT has Increased from 2 Crores in FY21 to 35 Crores in FY23. 8. As per FY23, CFO/EBITDA is 0.95, As per FY24, EPS is 4.37, 9. Market Capitalization is 2103 Crores & P/E is 84.39x based on FY24.

Lead Manager of Stanley Lifestyles Limited IPO:

  1. Axis Capital Limited
  2. ICICI Securities Limited
  3. JM Financial Consultants Private Limited
  4. SBI Capital Markets Limited

Registrar of Stanley Lifestyles Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Stanley Lifestyles Limited SY No. 16/2 and 16/3 Part, Hosur Road, Veerasandra Village, Attibele Hobli, Anekal Taluk, Bengaluru - 560 100 Phone: + 91 80 6895 7200 Email: investors@stanleylifestyles.com Website: https://www.lovestanley.com/

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