Stanley Lifestyles Ltd, a Bengaluru-based luxury furniture company, filed its Draft Red Herring Prospectus (DRHP) with the capital market regulator SEBI on Wednesday. The filing is part of the company's move to raise funds through an initial public offering (IPO), which includes a fresh issue of up to Rs 200 crore (approx. $24.1 million) and an offer for sale (OFS) of up to 9.13 million shares by promoter and investor selling shareholders.
The IPO is set to be conducted through the Book Building Process, where no more than 50% of the offer will be available for allocation on a proportionate basis to Qualified Institutional Buyers. Not less than 15% of the offer will be available for allocation to Non-Institutional Investors and not less than 35% of the offer will be available for allocation to Retail Individual Bidders.
The OFS comprises 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.
According to the DRHP, the Oman India Joint Investment Fund currently holds 13.86 million shares or 26.86% of the company and plans to sell 5.54 million shares in the OFS.
After consultation with the lead bankers to the issue, Stanley Lifestyles may consider a further issue of equity shares aggregating up to Rs 40 crore (“Pre-IPO Placement”). If such placement occurs, it would reduce the size of the fresh issue.
Stanley Lifestyles reported a significant increase in its fiscal year 2023's consolidated revenue from operations, which rose by 43.39% to Rs 419 crore from Rs 292.20 crore in the previous year. The company's net profit grew by over 50%, from Rs 23.22 crore in fiscal year 2022 to Rs 34.98 crore in fiscal year 2023.
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