About the company
Incorporated in 2007, Stanley Lifestyles is a super-premium and luxury furniture brand in India. The company retails its furniture products under the “Stanley” brand. Over the years, They have developed brand recognition and customer loyalty through their products, as well as targeted marketing strategies and advertisement campaigns such as “Beautiful Living”, “Design Glamour”, “Luxury Unlimited” and “Bed of Dreams”. Some of the company’s products include seating furniture such as sofas, sofa beds, recliners, dining chairs, poufs, bar stools, and cushions, and Cased goods like coffee tables, dining tables, end tables, and consoles, wardrobes, laundry/utility cupboards, bar cabinets, shoe racks, prayer cupboards, and bedside tables.
The company designs, manufactures, and retails its products through its own network of ‘company-owned and company-operated’ (COCO) and ‘franchisee-owned and franchisee-operated’ (FOFO) stores with pan-India presence. As of December 31, 2023, The company operated 38 ‘company owned and company operated’ or “COCO” stores all located in the major metro-cities of Bengaluru, Chennai, New Delhi, Mumbai, and Hyderabad, and 24 ‘franchisee-owned and franchisee-operated’ or “FOFO” stores in 21 cities across 11 States and Union Territories in India.
The company retails its furniture products primarily through its three store formats, each catering to a different segment of the market (i.e., ultra-luxury, luxury, and super premium):
- Stanley Level Next targets customers in the ultra-luxury home solution price points
- Stanley Boutique targets customers in the luxury category price points
- Sofas & More by Stanley targets customers in the super-premium price points
| Funds Raised in the IPO | Amount |
|---|---|
| Overall | ₹537.02 crores |
| Fresh Issue | ₹200 crores |
| Offer for sale | ₹337 crores |
Financial Snapshot
| Financial Year Ended | March 2021 | March 2022 | March 2023 | December 2023 |
|---|---|---|---|---|
| Total Assets | 346.52 | 422.15 | 458.19 | 581.54 |
| Revenue | 201.71 | 297.76 | 425.62 | 322.29 |
| Profit After Tax | 1.92 | 23.22 | 34.98 | 18.70 |
| EPS | 0.20 | 4.14 | 6.37 | 3.83 |
*All figures except EPS are in ₹ Crores
Risk factors
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Dependency on sofas and recliners: A significant portion, approximately 56%, of the company’s revenue relies on the sale of sofas and recliners. Fluctuations in demand and shifts in consumer preferences for these products could potentially impact the business, its operational outcomes, and financial health negatively.
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Geographical concentration vulnerability: The company has heavily concentrated its sales activities in the southern regions of India, with approximately 62-67% of revenue originating from Karnataka alone. Any unfavorable developments affecting operations in these areas could lead to adverse consequences on revenue and operational results.
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Corporate clientele risk: Around 25% of the company’s revenue stems from specific corporate clients, including a major automobile company for crafting leather automotive interiors. If these corporate clients decide to discontinue outsourcing manufacturing or utilizing services, the company’s sales, cash flows, and profitability may suffer adverse effects.
IPO Schedule
| Issue Period | 21-25 Jun 2024 |
|---|---|
| Price band | ₹ 351 to 369 |
| Minimum Bid quantity | 40 & Multiples thereof |
| UPI Mandate Deadline | 5 PM, 25 Jun 2024 |
| Allotment Finalization | 26 Jun 2024 |
| Refund Initiation | 27 Jun 2024 |
| Share Credit | 27 Jun 2024 |
| Listing Date | 28 Jun 2024 |
| Mandate end date | 10 July 2024 |
| Lock-In End Date for Anchor Investors (50%) | 25 July 2024 |
| Lock-In End Date for Anchor Investors (Remaining) | 23 Sept 2024 |
Note:
- The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
- The allotment status will be available by June 27, 2024, on the Registrar’s website and the NSE website.