![Shivani Nyathi, head of wealth management at Swastika Investmart, said the IPO listing of Stanley Lifestyles was positive but fell short of pre-IPO expectations, which had seen an overwhelming investor response and a much higher premium. Shivani Nyathi, head of wealth management at Swastika Investmart, said the IPO listing of Stanley Lifestyles was positive but fell short of pre-IPO expectations, which had seen an overwhelming investor response and a much higher premium.](https://images.news18.com/ibnlive/uploads/2021/07/1627283897_news18_logo-1200x800.jpg?impolicy=website&width=510&height=383)
Stanley Lifestyles' IPO listing was positive but fell short of pre-IPO expectations, which had anticipated a much higher premium, due to the overwhelming investor response, said Shivani Nyati, head of equity at Swastika Investmart.
On the BSE, shares of Stanley Lifestyles opened trading at ₹499, up 35.23% and later soared to ₹510, up 38.21%.
Stanley Lifestyle IPO Listing: Shares of luxury furniture brand Stanley Lifestyles Ltd on Friday listed at Rs 499 on the BSE, a premium of over 35 per cent over its issue price of Rs 369. The stock opened at Rs 499 on the BSE, reflecting the surge of 35.23 per cent. It later rose 38.21 per cent to Rs 510.
On the NSE, shares of Stanley Lifestyles were listed at Rs 494.95, up 34.13 per cent.
“While the performance is undoubtedly positive, it falls short of our pre-IPO expectations which had anticipated a higher premium due to the overwhelming investor response,” said Shivani Nyati, head of wealth management at Swastika Investmart.
The Stanley Lifestyles IPO was oversubscribed 96.98 times on the last day of subscription on June 25.
She added that a strong listing signals investor confidence in Stanley Lifestyles' existing brands, diverse product portfolio and consistent financial performance. However, the risks identified, including the high IPO valuation, dependence on sofa and recliner sales, and geographic concentration, require careful consideration.
“Existing investors can hold the stock at the suggested stop loss price of 450,” Nyati said.
The Rs 537-crore initial share sale included fresh issues of up to Rs 200 crore and offers for sale of up to 91,33,454 shares. The initial share sale price range was Rs 351-369 per share.
The net proceeds of Rs 90.13 crore from the fresh issue will be utilised by the company for opening new stores, expenditure of Rs 39.99 crore, opening of anchor stores, expenditure of Rs 10.04 crore and renovation of existing stores.
It provides financing amounting to Rs 8.18 billion for capital expenditure requirements for purchase of new machinery and equipment of the company and its material subsidiary Stanley OEM Sofas Ltd (SOSL) and for general corporate purposes.
Bangalore-headquartered Stanley Lifestyle is one of the few Indian companies that operates across a range of price points – high-end, luxury and ultra-luxury – through multiple brands.
The company operates two manufacturing facilities in Bengaluru.