Private equity Oman India Joint Investment Fund-backed Stanley Lifestyles has filed draft papers with the market regulator, Securities and Exchange Board of India (SEBI).
The initial public offering comprises a fresh issue of shares worth Rs 200 crore, and an offer-for sale (OFS) component of 91.33 lakh shares.
Promoters Sunil Suresh and his wife Shubha Sunil will be offloading 11.82 lakh shares each via OFS, while Oman India Joint Investment Fund II will be selling 55.44 lakh shares, and Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati 12.25 lakh shares.
Suresh and his wife currently hold 67.35 percent shareholding in the company, while Oman India Joint Investment Fund II owned by OIJIF-MC has 26.86 percent stake. OIJIF-MC is backed by two large sponsors – Oman Investment Authority and State Bank of India.
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The home solutions provider may consider fund raising of Rs 40 crore via private placement (pre-IPO placement), before filing IPO papers with the Registrar of Companies. It will reduce the fresh issue size if the said pre-IPO placement is undertaken.
The Bengaluru-based company is going to utilise fresh issue proceeds for opening new stores, renovation of existing stores, purchase of new machinery and equipment, and general corporate purposes.
Stanley Lifestyles is claimed to be India’s largest super-premium and luxury furniture brand with a market share of 5.61 percent in terms of revenue for the fiscal FY22. It provides a wide range of furniture such as sofas, arm chairs, kitchen cabinets, beds, mattresses and pillows, amongst others.
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The financial performance recorded in the past years remained strong with the net profit rising 54 percent on-year to Rs 32.9 crore and revenue increasing 43.4 percent to Rs 419 crore in the year ended March FY23. EBITDA (earnings before interest, tax, depreciation and amortisation) grew by 40.2 percent to Rs 82.7 crore during the same period, though margin dropped by 50 bps to 19.7 percent due to higher input cost.
Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets are appointed as the merchant bankers to the issue.
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