Ahead of IPO, Stanley Lifestyles raises Rs 161 Cr from anchor investors

Luxury furniture brand Stanley Lifestyles has raised a little over Rs 161 crore from anchor investors, a day before its initial share sale.

Those who have been allotted shares are SBI Mutual Fund (MF), Nippon India MF, ICICI Prudential MF, HDFC MF, Quant MF, Motilal Oswal MF, Bandhan MF, SBI Life Insurance Company, and Max Life Insurance Company, according to a circular uploaded on BSE's website.

Stanley Lifestyles has decided to allot 43.66 lakh equity shares to 16 funds at Rs 369 a piece, taking the aggregate transaction size to Rs 161.1 crore.

The Rs 537-crore initial public offering (IPO), with a price band of Rs 351 to Rs 369 per share, will open for public subscription on June 21 and conclude on June 25.

The IPO comprises fresh issuance of equity shares worth Rs 200 crore and an offer-for-sale component of 91.33 lakh equity shares by the company's promoters and other shareholders to the tune of Rs 337 crore at the upper end of the price band.

The net proceeds from the fresh issue to the tune of Rs 90.13 crore will be used by the company towards expenditure for opening new stores, Rs 39.99 crore expenditure for opening the anchor stores and Rs 10.04 crore expenditure for renovation of existing stores.

Funds to the tune of Rs 8.18 crore for funding the capital expenditure requirements for purchase of new machinery and equipment by the company and its material subsidiary, SOSL (Stanley OEM Sofas Ltd) and for general corporate purposes.

Half of the issue size has been reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.

Moreover, investors can bid for a minimum of 40 equity shares and in multiples of 40 equity shares thereafter.

Bengaluru-based Stanley Lifestyles is a luxury furniture brand and is among the few Indian companies operating in various price categories, including super-premium, luxury, and ultra-luxury, through its multiple brands.

The company operates two manufacturing facilities in Bengaluru.

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For FY23, the company's revenue from operations rose to Rs 419 crore, from Rs 292.20 crore a year ago, while net profit increased to Rs 34.98 crore in FY23, as against Rs 23.22 crore a year back.

Axis Capital, ICICI Securities, JM Financial and SBI Capital Markets Ltd are the book running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE.