Stanley Lifestyles Limited

About  Stanley Lifestyles Limited

Incorporated in 2007, Stanley Lifestyles Limited is the fourth largest player in the home furniture segment in India. Under the “Stanley” brand, it offers furniture in the super-premium, luxury and ultra-luxury segment. 

It designs, manufactures and retails its products through a network of ‘company-owned and company-operated’ (COCO) and ‘franchisee-owned and franchise-operated’ (FOFO) stores. As of 31 December 2023, it operates 38 COCO stores in the metro cities of Bengaluru, Chennai, New Delhi, Mumbai and Hyderabad and 24 FOFO stores in 21 cities across 11 States and Union Territories in India. 

The company’s integrated model of in-house manufacturing and product sales through its own network of retail stores allows it to have complete control over its operations.

Stanley Lifestyles has developed long-standing relationships with its vendors, allowing it to source quality raw materials such as leather and Forest Stewardship Council (FSC) certified timber. In fact, as of FY23, it is one of the largest importers of leather in India for furniture manufacturing purposes. 

Between FY21 and FY23, it saw a CAGR rise of 28% in its revenue from operations and 163% in its profit. Moreover, the Indian home and furniture market is expected to grow at a rate of 27% to reach $49 billion by FY27, which could benefit the company. 

Besides this, the increase in national GDP and the growth witnessed by the Indian economy in the last decade has created a new upper middle class with demands for luxury and premium housing. 

This increasing demand for housing, interior design services, furnished options, renovations, and evolving housing trends all contribute to the expansion of the furniture market, which caters to the furnishing needs of properties in the real estate sector.

And now, Stanley Lifestyles Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹537.02 crore, comprising fresh issue, aggregating to ₹200 crore, as well as an offer for sale, aggregating to ₹337.02 crore. The money raised from the fresh issue will be utilised to invest in its subsidiaries for renovating existing stores and opening new ones, to purchase equipment and for general corporate purposes. Its shares will be listed on the NSE and BSE.

Here are key details about the Stanley Lifestyles IPO:

Financial snapshot

Here’s a quick look at Stanley Lifestyles Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Among the few homegrown luxury consumer brands in India, it is the largest in terms of the number of stores and the fastest growing in terms of revenue growth.
2. Comprehensive offerings include sofas, cabinetry and furniture for living rooms, dining rooms, family rooms, kitchens, bedrooms (including bedding products), home offices, 10 different types and over 300 colours of leathers and fabrics, and installation. 
3. Pan-India presence with strategically located stores in three formats, namely - Stanley Level Next, Stanley Boutique, and Sofas & More by Stanley. 
4. Focus on design-led innovation having developed 88 new products in FY23 and 71 new products in Q3 FY24.
5. Vertically integrated furniture manufacturing with two manufacturing facilities in Bengaluru, Karnataka and retailing through its network of COCO and FOFO stores.
6. Track record of financial growth with EBITDA margins of 15%, 20%, 19%, and 18% as of FY21, FY22, FY23, and Q3 FY24, respectively. 

Risks and threats

1. The business is highly dependent on the sale of sofas and recliners, which accounted for 55% of the total revenue from operations in Q3 FY24. 
2. Concentrated in the state of Karnataka making up 60% of its total store sales in Q3 FY24.
3. As of Q3 FY24, all of its COCO stores are operated by its subsidiaries, and third parties or partners hold a certain stake in one of its subsidiaries. 
4. It intends to expand operations in the Middle East and Southeast Asia but is subject to risks associated with expansion into new geographic regions, such as its lack of familiarity with the culture, local laws, regulations, and economic conditions, and the lack of brand recognition and reputation in such regions. 

Stanley Lifestyles Limited IPO details

|Stanley Lifestyles Limited IPO date

According to the offer document filed by the company with the SEBI, the Stanley Lifestyles IPO’s opening date – in other words, the Stanley Lifestyles IPO launch date – will be 21st June 2024. The Stanley Lifestyles IPO closing date is 25th June 2024. After this, investors will be updated about the allotment status on 26th June 2024.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 27th June 2024. The Stanley Lifestyles IPO listing date is 28th June 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.

|Stanley Lifestyles Limited IPO Price Band

The IPO is a fresh issue as well as an offer for sale. The Stanley Lifestyles IPO price band has been set between ₹351 and ₹369 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Stanley Lifestyles IPO listing price will be determined on 28th June 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Stanley Lifestyles Limited IPO Lot size

The Stanley Lifestyles IPO details have been declared. The Stanley Lifestyles IPO lot size is set at 40 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Stanley Lifestyles IPO issue size is approx ₹537 crore. 

How to pre-apply for the Stanley Lifestyles Limited IPO?

You can pre-apply for the Stanley Lifestyles Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Stanley Lifestyles Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Stanley Lifestyles Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Stanley Lifestyles Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Stanley Lifestyles Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Stanley Lifestyles Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Stanley Lifestyles Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Stanley Lifestyles Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Stanley Lifestyles Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Stanley Lifestyles Limited IPO

To apply for the Stanley Lifestyles Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Stanley Lifestyles Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Stanley Lifestyles Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.