Stanley Lifestyles IPO: A Comprehensive Overview
Stanley Lifestyles’ Initial Public Offering (IPO) is creating significant buzz in the market. The company is launching a book-built issue worth ₹537.02 crores, which includes a fresh issue of 0.54 crore shares aggregating to ₹200 crores and an offer for sale of 0.91 crore shares amounting to ₹337.02 crores. The IPO has garnered an overwhelming response, receiving bids 97 times the total issue size, and is set to list on the exchange on June 28, 2024.
IPO Details
- Price Band: ₹351 to ₹369 per share
- Issue Size: ₹537.02 crores
- Fresh Issue: ₹200 crores
- Offer for Sale: ₹337.02 crores
Financial Performance
Stanley Lifestyles has demonstrated steady growth in its assets, primarily driven by significant initial investments. Here’s a snapshot of their financial performance:
- Assets:
- March 31, 2021: ₹346.52 crores
- March 31, 2023: ₹458.19 crores
- December 2024: ₹581.54 crores
- Net Profit:
- March 31, 2021: ₹1.92 crores
- March 31, 2023: ₹34.98 crores
- December 2023: ₹18.70 crores
While the company has seen substantial growth in assets and profitability, it is noteworthy that their total borrowings have increased disproportionately relative to their net profit, which raises some concerns regarding financial management.
Use of IPO Proceeds
The funds raised from this IPO will primarily be used for business expansion, including opening new stores and acquiring new machinery and equipment. This aligns with the increasing trend of “lifestyle premiumization” expenditure, which Stanley Lifestyles is well-positioned to capitalize on. Follow VLA Ambala SEBI RA here on telegrams here – https://t.me/SMTStockMarketToday
Market Position and Investor Interest
Despite not having the most robust financials, Stanley Lifestyles operates in a lucrative business category and has secured the backing of 16 anchor investors. These include notable names such as:
- SBI Consumption MF
- Bandhan Mid Cap Fund
- SBI Life
- Meru Investment
- Motilal Oswal Large Cap Fund and many more..
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This strong anchor investor interest is a testament to the company’s market positioning and potential.
Forecast and Strategy
Given the IPO subscription rate, price band, business category, anchor investor interest, grey market premium (GMP), and financials, we forecast a premium listing. The listing price could range from ₹145 to ₹160, representing a 40% to 50% premium on its listing day.
Post-Listing Strategy – Follow VLA Ambala SEBI RA here on telegrams here – https://t.me/SMTStockMarketToday
- Pull Out Invested Amount: Secure your initial investment.
- Keep Profits Invested: Retain your profit in the company for potential long-term growth.
In conclusion, while there are some red flags regarding the company’s borrowings, the overall market dynamics and investor interest suggest a promising listing. Stanley Lifestyles’ focus on expanding its business and leveraging the growing premium lifestyle market positions it well for future growth.
Vijay Laxmi aka VLA Ambala is SEBI registered Research Analyst and her research and view are being published in various media platforms as well- Check here – https://smtstockmarkettoday.com/pr-and-media/
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