The IPO comprises a fresh issue of shares worth ₹200 crore, and an offer-for sale of up to 9.13 million shares by existing shareholders, including the promoter group.
The sofa maker said that founders Shubha Sunil and Sunil Suresh plan to sell up to 1.18 million shares in the OFS, while Oman India Joint Investment Fund II plans to offer up to 5.54 million shares.
Shareholders Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati will sell up to 1 million shares and 225,000 equity shares, respectively, according to the release.
According to the draft red herring prospectus (DRHP), while the two promoters own 33.68% each in Stanley, Oman India Joint Investment Fund owns 26.86%. Kiran Bhanu and Sridevi Venkata hold 3.77% and 0.61%, respectively.
In 2018, the Oman India Joint Investment Fund had acquired 26% in Stanley. In 2019, the company had secured an additional ₹100 crore from the fund.
For fiscal year 2023, the company reported a 43% year-on-year increase in its consolidated revenue to ₹419 crore, primarily driven by a rise in retail sales. Net profit rose 50.65% on year to ₹34.98 crore in fiscal 2023.
The company said ₹90.13 crore worth of IPO proceeds will be used for expanding the store network, while about ₹39.99 crore could be used for opening anchor stores.
Additionally, around ₹10.04 crore will be used by Stanley for renovating of existing stores, and ₹8.18 crore could be utilized for funding capex plans, purchase of new equipment by the company and its subsidiary, SOSL, and towards general corporate purposes.
Founded in 2011, Stanley Lifestyles has two manufacturing capacities in Bengaluru, and a network of 55 stores across the country. The company manufactures and sells furniture including sofas, armchairs, kitchen cabinets, beds, mattresses, and pillows. Courtesy: https://www.livemint.com/market/ipo/stanley-lifestyles-files-for-ipo-11693918900531.html