Stanley Lifestyles Elevates Luxury Furniture Market, Raises INR 161 Crore from Anchor Investors

A Leading Player in Luxury Furniture with Strategic Growth Plans Stanley Lifestyles, backed by private equity, is the fourth-largest player in India's home furniture market, excelling in super-premium, luxury, and ultra-luxury furniture ranges. This Bengaluru-based company, known for its 'Stanley' brand, is set to launch a INR 537 crore initial public offering (IPO), comprising a fresh issue of INR 200 crore and an offer for sale of INR 337 crore.

Key Highlights of the IPO:

The IPO represents 25% of the post-issue paid capital. Proceeds will be used to open new stores, renovate existing ones, and invest in new machinery.

Business Overview:

Established in 2007, Stanley Lifestyles operates 62 stores across 25 cities in India. The company generates 80% of its revenue from five southern states and offers a range of customized home solutions including sofas, wardrobes, kitchen cabinets, and beds.

Store Formats:

The company store formats include 'Stanley Level Next', 'Stanley Boutique', and 'Sofas More by Stanley', competing with European luxury furniture brands.

Financial Performance and Growth Prospects:

Stanley Lifestyles' revenue more than doubled from INR 196 crore in FY21 to INR 419 crore in FY23. Net profit increased from INR 1.9 crore in FY21 to INR 35 crore in FY23.

Recent Performance:

For the first nine months of FY24, net profit was INR 19 crore, affected by seasonality, store closures, and the gestation period for new stores. Operating profit margins slightly declined from 20.2% in FY22 to 18.4% in FY24.

Future Expansion:

The company aims to expand its retail presence in India and explore international markets in West Asia and Southeast Asia.

Valuation Insights

With an implied market capitalization of over INR 2,000 crore, the IPO values the company at approximately five times its estimated FY24 revenues and 71 times its estimated FY24 earnings.

Investment Consideration:

These aggressive valuations suggest that investors may want to monitor the company's post-IPO performance before making investment decisions.

Anchor Investors

Stanley Lifestyles raised INR 161.10 crore from 16 anchor investors, offering 4.36 million shares at INR 369 each. Prominent investors include SBI MF, Nippon MF, Quant MF, and Franklin India Opportunities Fund.

About Stanley Lifestyles

Stanley Lifestyles is a luxury lifestyle manufacturing and retail company dedicated to creating products that enhance lives, specializing in furniture, home decor, and accessories. With over 27 years of in-house manufacturing experience in a 200,000 sq ft facility in Bangalore, the company boasts various sub-brands such as Sofas More, Stanley Personal, and Stanley Leisure.