Stanley Lifestyles Lists At Over 38% Gains in Debut Trade: Hold, Sell, or Buy?
While Stanley Lifestyles’ IPO listing is positive, it falls short of pre-listing expectations that likely anticipated an even higher premium due to the overwhelming investor response, says Shivani Nyati, head of wealth at Swastika Investmart.
On the BSE, Stanley Lifestyles’ shares started the trade at Rs 499, reflecting a jump of 35.23 per cent; later, they soared 38.21 per cent to Rs 510
Stanley Lifestyles IPO Listing: Shares of luxury furniture brand Stanley Lifestyles Ltd on Friday listed with a premium of over 35 per cent at Rs 499 on the BSE, against the issue price of Rs 369. On the BSE, the stock started the trade at Rs 499, reflecting a jump of 35.23 per cent. Later, it soared 38.21 per cent to Rs 510.
On the NSE, shares of Stanley Lifestyles it listed at Rs 494.95, up 34.13 per cent.
“While this performance is undoubtedly positive, it falls short of pre-listing expectations that likely anticipated an even higher premium due to the overwhelming investor response,” said Shivani Nyati, head of wealth at Swastika Investmart.
The Stanley Lifestyles IPO received a 96.98 times subscription on the last day of subscription on June 25.
She added that the strong listing signifies investor confidence in Stanley Lifestyles’ established brand, diverse product portfolio, and consistent financial performance. However, the high IPO valuation and identified risks, such as dependence on sofa and recliner sales and geographical concentration, warrant careful consideration.
“Existing investors may HOLD their shares with a suggested stop loss of 450,” Nyati said.
The Rs 537-crore initial share sale had a fresh issue of up to Rs 200 crore and an offer for sale of up to 91,33,454 equity shares. The initial share-sale had a price range of Rs 351-369 per share.
The net proceeds from the fresh issue to the tune of Rs 90.13 crore will be used by the company towards expenditure for opening new stores, Rs 39.99 crore expenditure for opening the anchor stores and Rs 10.04 crore expenditure for renovation of existing stores.
Funds to the tune of Rs 8.18 crore for funding the capital expenditure requirements for the purchase of new machinery and equipment by the company and its material subsidiary, SOSL (Stanley OEM Sofas Ltd) and for general corporate purposes.
Bengaluru-based Stanley Lifestyles is among the few Indian companies operating in various price categories, including super-premium, luxury, and ultra-luxury, through its multiple brands.
The company operates two manufacturing facilities in Bengaluru.
