Stanley Lifestyles shares recorded nearly 29 percent gains on the listing day, June 28. Nippon India Mutual Fund bought additional 6.3 percent stake in the company, while Oman India Joint Investment Fund exited by selling entire shareholding on the debut day.
This was the last market debut for the June month, from the mainboard segment.
The stock opened at Rs 494.95 on the NSE, up 34.1 percent over the issue price of Rs 369 per share, which was lower than analysts expectations of 40 percent plus. It climbed up to Rs 509.4 in morning trade, and saw some profit booking at higher levels, hitting the day's low of Rs 470.20, before closing the debut session at Rs 474.75, up 28.66 percent with volume of 2.16 crore equity shares.
On the BSE, it rallied 28.46 percent to Rs 474, with volume of 55.84 lakh equity shares.
Meanwhile, the stock has seen several block deals during the day. Nippon India Mutual Fund and its schemes bought additional 37.25 lakh equity shares (equivalent to 6.53 percent stake) in the super-premium and luxury furniture manufacturing company.
Nippon India Mutual Fund, itself, bought 5 lakh shares at an average price of Rs 499.43 per share, and Nippon Life India Trustee Ltd-Value Fund 12,56,750 equity shares at an average price of Rs 478.71 per share. Nippon's Small Cap Fund picked 17,18,250 shares, and Equity Hybrid Fund 2.5 lakh shares at an average price of Rs 478.71 per share.
Furthermore, Franklin Templeton Mutual Fund purchased 11 lakh shares (equivalent to 1.9 percent of paid up equity) at an average price of Rs 475 per share, and Morgan Stanley Asia Singapore Pte bought 3.5 lakh shares (0.6% stake) at an average price of Rs 478.87 per share.
However, Oman India Joint Investment Fund II, managed by OIJIF-MC, exited Stanley Lifestyles by selling entire shareholding of 83,16,680 equity shares (14.59 percent stake), valuing at Rs 401.63 crore.
In addition, Oman India had already sold 55,44,454 equity shares at issue price of Rs 369 per share via initial public offering, which amounted to Rs 204.59 crore.
As per the shareholding pattern available in red herring prospectus, Oman India owned 1,38,61,134 shares or 26.84 percent stake in the company. The weighted average cost of acquisition of these shares were Rs 108.22 per share. According to which, the total value of these shares were Rs 150 crore, while the total selling amount now stood at Rs 606.22 crore.
The Bengaluru-based company has raised Rs 537.02 crore via initial public offering which was subscribed 96.98 times during June 21-25. The price band for the public issue was Rs 351-369 per share.
The IPO was comprised of a fresh issuance of shares worth Rs 200 crore, and an offer-for-sale of 91.33 lakh shares worth Rs 337.02 crore.
Stanley Lifestyles will spend Rs 140.2 crore out of the net fresh issue proceeds for opening of new stores and anchor stores, and renovation of existing stores. Further, Rs 6.6 crore will be used for purchase of new machinery and equipment, and the remaining for general corporate purposes.
Stanley Lifestyles operated 38 'company owned and company operated’ (COCO) stores in the major metro-cities, and 24 ‘franchisee-owned and franchisee-operated’ (FOFO) stores in 21 cities in India. It intends to establish 24 new stores between FY25 and FY27.
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