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On the first day, the IPO subscribed 1.44 times; the price band Rs 351-369
The initial public offering of the Bengaluru-based Stanley Lifestyles enters its second day. The ₹537-crore IPO of elite furniture makers saw a robust response from non-institutions (HNIs) and retail investors on Day 1 itself.
The IPO, which hit the market at a price band of ₹351-369, was subscribed 1.44 times. It will close on Tuesday. The IPO, with a face value of ₹2 a share, consists of a fresh issue of ₹200 crore and an offer for sale of up to 91,33,454 shares by promoters and other selling shareholders. As against the offer size of 1.02 crore shares (net off anchor portion), the IPO received bids for 1.47 crore shares.
Stanley Lifestyle is a manufacturer and retailer of furniture specialising in the super-premium segment under the “Stanley” brand name.
Investors can bid for a minimum of 40 equity shares and in multiples of 40 equity shares thereafter.
The offer is being made through the book-building process, wherein not more than 50 per cent will be available for allocation to qualified institutional buyers (QIBs), up to 15 per cent will be available for allocation to non-institutional bidders, and not less than 35 per cent will be available for allocation to retail investors.
The portion reserved for HNIs was subscribed over two times, that of retail investors by 1.8 times, and the QIB portion by 0.3 times.
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 company’s equity shares are proposed to be listed on the BSE and NSE.
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.
Stanley Lifestyle is 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, said Stanley in the papers filed with SEBI. “We retail our furniture products under the “Stanley” brand with a wide range of home solutions offerings, such as sofas, armchairs, kitchen cabinets, beds, mattresses, and pillows.
The book-running lead managers are Axis Capital Limited, ICICI Securities Limited, JM Financial Limited, and SBI Capital Markets Limited.
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