Stanley Lifestyles Ltd IPO

Stanley Lifestyles Limited filed its initial papers with market regulator SEBI to launch its IPO. The company is a luxury sofa and home décor company and is backed by the Oman India Joint Investment Fund. 

The Initial Public Offering will comprise both a fresh issue as well as an Offer for Sale. There will be a fresh issue worth Rs. 200 crore and an Offer for Sale of 91.33 lakh shares. For the OFS, the Oman India Joint Investment Fund will sell up to 5.54 million shares. Stakeholders Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati will offer up to 1.18 million shares. 

Learn more about the company and its financials to make a wise investment decision.  

Also Read: How does an IPO work?

About Company 

Stanley Lifestyles is a renowned Indian furniture brand specialising in the premium and luxury segments. It is the fourth-largest home furniture brand in terms of revenue as of FY22. 

Stanley Lifestyles has been in the home décor and lifestyle industry for about 30 years now. The company has its headquarters located in Karnataka. 

Stanley Lifestyles has a skilled and diverse team of individuals from different parts of the country. It currently has two facilities in Electronic City and Jigani Link Road with the latest technology and equipment. 

What makes Stanley Lifestyles stand apart from its competitors is its effort towards the employees. The company offers extensive training programmes for their artisans. This ensures that the manufactured products are only as per the standards of Italy, France, and Germany. 

The subsidiaries of the company include Stanley Leisure, Stanley Personal, Stanley Level Next, Stanley Boutique, and Sofas and more.

Company Financials 

The following table lays down the details of Stanley Lifestyles’ finances for the last three financial years. Take a look to get an idea of how the company has been performing.

Parameters as Per the Year Ending On	31 March 2023	31 March 2022	31 March 2021
Total Assets	4,581.86	4,221.45	3,465.16
Total Liabilities	2,343.87	2,165.43	1,589.22
Total Expenses	3,792.22	2,658.19	1,954.91
Total Revenue	4,256.22	2,977.55	2,017.11
Profit After Tax	349.77	232.19	19.23
EBITDA	827.17	590.08	297.75
Earnings Per Share (EPS) (Basic and Diluted) *	6.37	4.14	0.20

*Values in INR millions except EPS 

Also Read: Trailing Earnings Per Share (EPS)

Strengths 

The key competitive strengths of Stanley Lifestyles include the following and more: 

• It is India’s largest luxury furniture brand with a 5.61% revenue market share in FY 2022. Leading in store count and boasting the fastest revenue growth among peers at 46.29% CAGR, its revenue grew from Rs. 1,957.80 million in FY 2021 to Rs. 98.94 million in 188 Fiscal Year 2023. 
• Founded by first-generation entrepreneurs, it has built the ‘Stanley’ brand on premium manufactured automotive seats using leather as the foundation for quality solutions for the home. The company’s skilled craftsmanship greatly enhances the appeal of the “Stanley” brand.
• The company has an extensive retail footprint in India spanning various store formats, enabling it to effectively reach out to various markets and enhance its brand visibility. As of June 30, 2023, Stanley Lifestyles maintains the largest network of luxury furniture retail stores in India.
• It is one of the few vertically integrated furniture manufacturers with two manufacturing facilities in Bengaluru, Karnataka, and a network of company-owned and franchise-owned stores. Its integrated model provides control over all aspects leading to increased profit margins.

Risks Involved 

Along with many benefits, there are also some risks involved with this business. Here are a few: 

• The company does not own the trademark “Stanley” as it is registered in the name of one of its promoters, Sunil Suresh. If the intellectual property rights to be transferred to the Company through the Deeds of Assignment are not registered in its name within a reasonable time, the company’s business and financial condition could face adverse consequences.
• Their business relies heavily on selling sofas and armchairs. Fluctuations in demand and changes in consumer preferences for sofa and armchair products could adversely affect Stanley’s business, results of operations and financial stability.

Also Read: IPO investment strategy

Conclusion

Stanley Lifestyles Limited has reported a 43% growth in its consolidated revenue for the financial year of 2023. Its revenue stands at Rs. 419 crore which is primarily due to increased sales in retail. The company aims to expand its store network with IPO proceeds worth Rs. 90.13 crore. The remaining amount- Rs. 39,99 crore will be used for opening new anchor stores. 

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