Bengaluru-based, Stanley Lifestyles Ltd, the country’s largest super-premium and luxury furniture brand with a market share of 5.61% in terms of revenue in Fiscal 2022, has filed its Draft Red Herring prospectus (DRHP) with capital market regulator Sebi to raise funds through for its initial public offering (IPO).
The IPO with a face value of Rs 2 consists of fresh issue of up to Rs 200 crore and an offer for sale (OFS) of up to 9.13 million by Promoter and Investor Selling Shareholders.
The offer for sale comprises of up to 1.18 million equity shares by Sunil Suresh and Shubha Sunil, up to 5.54 million equity shares by Oman India Joint Investment Fund II, up to 1 million equity shares by Kiran Bhanu Vuppalapati, and up to 2.25 lakh equity shares by Sridevi Venkata Vuppalapati.
In 2018, the Oman India Joint Investment Fund had invested into the company, securing a 26% ownership stake. This marked the company's inaugural round of private equity funding. Subsequently, in 2019, the company secured an additional Rs 100 crore in funding from the Oman India Joint Investment Fund II.
According to the information provided in the Draft Red Herring Prospectus (DRHP), as of that date, the Oman India Joint Investment Fund holds 13.86 million shares, or 26.86% of the Company and it plans to sell 5.54 million shares in the Offer for Sale (OFS). OIJIF II's portfolio also encompasses investments in Divgi TorqTransfer, Annapurna Finance, PNB MetLife, Capital Small Finance Bank, My Digi Gold, ShopKirana, and HomeLane.
The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.
The company, in consultation with the lead bankers to the issue, may consider a further issue of equity shares aggregating up to Rs 40 crore (“Pre-IPO Placement”). If such placement is completed, the fresh issue size will be reduced.
As per the DRHP, the proceeds from the Fresh Issue to the tune of Rs 90.13 crore will be used for expenditure for opening the New Stores, Rs 39.99 crore expenditure for opening the Anchor Stores, Rs 10.04 crore expenditure for renovation of the Existing Stores, Rs 8.18 crore for funding the capital expenditure requirements for purchase of new machinery and equipment by the Company and its Material Subsidiary, SOSL and general corporate purposes.
