Stanley Lifestyles Ltd., a prominent luxury sofa and home decor company, has taken a significant step towards expansion by filing draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) to raise ₹200 crore.
The proposed IPO will consist of a fresh issue of shares valued at ₹200 crore, and an offer-for-sale (OFS) of up to 9.13 million shares by existing shareholders, including the promoter group.
According to the company’s filing, founders Shubha Sunil and Sunil Suresh intend to sell up to 1.18 million shares in the OFS, while Oman India Joint Investment Fund II plans to offer up to 5.54 million shares. Other shareholders, namely Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati, will sell up to 1 million shares and 225,000 equity shares, respectively.
As per the draft red herring prospectus (DRHP), the two promoters currently hold 33.68% each in Stanley, with Oman India Joint Investment Fund owning 26.86%. Kiran Bhanu and Sridevi Venkata hold 3.77% and 0.61%, respectively.
Notably, in 2018, the Oman India Joint Investment Fund acquired a 26% stake in Stanley, and in 2019, the company received an additional ₹100 crore investment from the fund.
Stanley Lifestyles Ltd. has reported robust financial performance, with a 43% year-on-year increase in consolidated revenue to ₹419 crore for fiscal year 2023, primarily driven by higher retail sales. Net profit for the same period rose by 50.65% to ₹34.98 crore.
The company plans to utilize ₹90.13 crore of the IPO proceeds for expanding its store network, while approximately ₹39.99 crore will be allocated for opening anchor stores. Additionally, around ₹10.04 crore will go towards renovating existing stores, and ₹8.18 crore will be used to fund capital expenditure plans, purchase new equipment for the company and its subsidiary, SOSL, and meet general corporate requirements.
Founded in 2011, Stanley Lifestyles operates two manufacturing facilities in Bengaluru and maintains a network of 55 stores across India. The company specializes in the production and sale of luxury furniture, including sofas, armchairs, kitchen cabinets, beds, mattresses, and pillows. The IPO is expected to fuel the company’s expansion efforts and further establish its presence in the luxury furniture and home decor market.
