Stanley Lifestyles: 10 reasons to invest in this IPO, GMP reached 43% on the very first day of the issue

Stanley Lifestyles IPO Open Today :Action is in full swing in the IPO market. Today, on 21 June 2024, the IPO of Stanley Lifestyles Limited (Stanley Lifestyles IPO) has opened for subscription. Retail investors will be able to bid in this IPO till June 25. The size of the IPO is around Rs 537 crore. At the same time, the company has fixed the price band for this at Rs 351-369 per share. At the same time, craze is being seen about it in the gray market. Brokerage houses are positive about the company’s IPO and are advising to subscribe. On June 28, the company’s shares will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

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10 big reasons to invest in IPO

Brokerage house Anand Rathi has advised to subscribe to Stanley Lifestyles for a long term. At the same time, brokerage house SMIFS has also advised to subscribe to the issue (Subscribe Stanley Lifestyles IPO). You should know the 10 reasons behind this.

1. The brokerage says Stanley is a super-premium and luxury furniture brand in India and one of the few domestic super premium and luxury consumer brands operating on a large scale in India.

2. The company is the fourth largest player in the home furniture segment in India in terms of revenue in FY 2023. Stanley Lifestyles has the distinction of being one of the first few Indian companies to do business in the super-premium and luxury furniture segment.

3. On the valuation front, the company is priced at a P/E of 60x post the issuance of equity shares based on FY23 earnings at the upper price band.

4. There are no listed peers in the sector in which the company is located.

5. The company has scope for business improvement based on industry tailwinds, brand recall and business scalability.

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6. Stanley Lifestyles has an estimated market size of around $5.3 billion (Rs 423 billion) in FY23, which is projected to grow to around $10.5 billion (Rs 840 billion) by FY27.

7. The company currently has 62 COCO and FOFO stores with an average revenue per store of Rs 50.67 million as of 9MFY24. With the expansion of 24 new stores and 3 new anchor stores by FY27, the company’s total store count will increase to 89 stores.

8. The company’s average revenue per store will increase due to growth in India’s per capita GDP, increasing number of affluent families and increase in organized retail share in the luxury retail market.

9. Stanley is the largest among its peers in terms of number of stores and total range of luxury products offered and is the fastest growing in terms of revenue. With the new stores opened in the last 2-3 years and the addition of new stores in the coming years, the company’s presence will almost triple.

10. Rapid expansion of stores from 19 stores in FY11 to 34 stores in FY13 has led to a 46.29% CAGR growth in revenue and EBITDA growth of 173.44%. EBITDA margin has improved to 20% in FY23 from 15% in FY21. The company recorded ROE and ROCE of 16.83% and 28.99% in FY23.

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Size of IPO

The size of Stanley Lifestyles Limited’s IPO is Rs 537.02 crore. For this, the company will issue 5,420,054 new shares worth Rs 200 crore. At the same time, the company’s existing investors and promoters will sell 9,133,454 shares worth Rs 337.02 crore through Offer for Sale i.e. OFS. Retail investors can bid for a minimum of one lot i.e. 40 shares. That is, the bid will have to be made with a minimum of Rs 14,760.

Stanley Lifestyles GMP

There is a stir in the grey market regarding the unlisted stock of the company. In the grey market, the unlisted stock of Stanley Lifestyles is trading at a premium of Rs 160. As per the upper price band of Rs 369, there are indications of the listing of this stock at Rs 529. This premium is 43 percent.

How much reserve for whom

50 per cent of the company’s IPO has been reserved for qualified institutional buyers (QIB). Of this, 35 per cent is reserved for retail investors, while 15 per cent is reserved for non-institutional investors (NII).