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Stanley Lifestyles Ltd IPO
Status:
Overview
IPO date
21 Jun 2024 to 25 Jun 2024
Face value
₹ 0 per share
Price
₹ 351 to ₹369 per share
Issue Size
14,553,508 shares
(aggregating up to ₹ 537.02 Cr)
(aggregating up to ₹ 537.02 Cr)
Allotment Date
26 Jun 2024
Listing at
NSE
Issue type
Book Building
Sector
Objectives of Stanley Lifestyles Ltd IPO
Initial public offer of 14,553,508 equity shares of face value of Rs. 2 each ("Equity Shares") of Stanley Lifestyles Limited ("Company" or "Issuer") for cash at a price of Rs. 369 per equity share (including a share premium of
Rs. 367 per equity share) ("Offer Price") aggregating up to Rs. 537.02 crores comprising a fresh issue of 5,420,054 equity shares aggregating up to Rs. 200.00 crores by the company ("Fresh Issue") and an offer for sale of 9,133,454 equity shares aggregating up to Rs. 337.02 crores ("Offered Shares") by the selling shareholders, comprising 1,182,000 equity shares aggregating to Rs. 43.62 crores by Sunil Suresh and 1,182,000 equity shares aggregating to Rs. 43.62 crores by Shubha Sunil (collectively the "Promoter Selling Shareholders"), up to 5,544,454 equity shares aggregating to
Rs. 204.59 crores by Oman India joint investment fund ii, acting through its trustee oman india joint investment fund trustee company private limited, represented by its investment manager, oman india joint investment fund - management company private limited ("Oman India joint investment fund ii") (the "Investor Selling Shareholder"), and 1,000,000 equity shares aggregating to Rs. 36.90 crores by Kiran Bhanu Vuppalapati, and 225,000 equity shares aggregating to Rs. 8.30 crores by Sridevi Venkata Vuppalapati (collectively "Individual Selling Shareholders") (the promoter selling shareholders, the investor selling shareholder and the individual selling shareholders, collectively referred to as the "Selling Shareholders") ("Offer for Sale", together with the fresh issue, the "Offer").
The face value of equity shares is Rs. 2 each. The offer price is 184.50 times the face value of the equity shares.
Stanley Lifestyles Ltd IPO Strategy
- Continue to expand its retail presence within India and abroad by leveraging the "Stanley" brand appeal.
- Continue to increase brand awareness.
- To evaluate and increase its presence in the B2B segment as well as enter into distribution arrangements.
- Further expand its product portfolio.
- To enter and expand into additional segments.
- Leverage technology to enhance customer experience and grow its operations.
About Stanley Lifestyles Ltd
Stanley Lifestyles Limited was originally formed as a Partnership Firm under the Partnership Act, 1932, in the name of Stanley Seating' through a Deed of Partnership dated February 1, 2007. The Company thereafter, incorporated as a Public Limited Company as Stanley Lifestyles Limited' upon its conversion from a Partnership Firm vide a fresh Certificate of Incorporation dated October 11, 2007 and a Certificate for Commencement of Business dated December 14, 2007 from the RoC. The Company is engaged in the business of manufacturing and trading of furniture and leather products.
The Promoters commenced operations by providing car seat leather upholstery services for leading global automotive brands and subsequently transitioned to retailing luxury furniture in India. By offering luxury leather upholstery, the Company opened retail store in Bengaluru, Karnataka in 2011. Further they transformed into a comprehensive provider of home solutions and are the only super-premium and luxury Indian brand that provide a wide range of home solutions offerings, such as sofas, arm chairs, kitchen cabinets, beds, mattresses and pillows, amongst others.
In 2011, the Company opened its first franchisee owned franchisee operated store in Kochi, Kerala; operated store in Bengaluru, Karnataka in 2012 and thereafter, opened in Chennai, Tamil Nadu. In 2018, the Company incorporated a Subsidiary, Shrasta Décor Private Limited (SDPL) and opened their first operated store in Hyderabad. It opened first store under Stanley Level Next' format to offer luxury products in 2019. The Company increased the count to 25 stores in 2021. In 2022, it expanded the network of stores by opening first company owned company operated' store in Delhi, which has increased the store count to more than 50 stores in 2023.
The Company launched an IPO by issuing 14,553,508 Equity Shares having the face value of Rs 2 each, by raising funds aggregating to Rs 537 Crore, comprising a fresh issue of 5,420,054 Equity Shares aggregating to Rs 200 Crore and 9133454 equity shares aggregating to Rs 337 Crore through offer for sale in June, 2024.
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Strengths vs Risks of Stanley Lifestyles Ltd
Know the pros & cons
Strengths
Largest and the fastest growing brand in the luxury/super-premium furniture segment.- Comprehensive home furniture provider with offerings across categories and price points.
- Pan-India presence with strategically located stores.
- Focus on design-led product innovation.
- Vertically integrated manufacturer with skilled craftmanship capabilities.
- Efficient business model with track record of delivering financial growth.
- Promoter-led company with experienced professional and senior management team.
Risks
- The company does not own the brand name "Stanley" which is registered in the name of one of its Promoters, Sunil Suresh. While the company has entered into the Assignment Deeds with Sunil Suresh, however, the trademarks are yet to be registered in its name. Further, one of its Promoters, Sunil Suresh has entered into a co-existence agreement with Stanley Furniture Company, Inc to limit and restrict the use of the term "Stanley" as a trademark in a composite manner in respect of products. In the event that the intellectual property rights to be assigned to it pursuant to the Assignment Deeds are not registered in its name in a timely manner or any breach or termination of the co-existence agreement occurs, it may adversely affect its business and financial condition.
- Its business is highly dependent on the sale of sofas and recliners. Variations in demand and changes in consumer preference for its sofa and recliner products could have an adverse effect on its business, results of operations and financial condition.
- The Company does not have any listed industry peers in India or abroad and it may be difficult to benchmark and evaluate its financial performance against other operators who operates in the same industry as the company.
- The company generated a substantial portion of its sales from its stores located in southern regions of India and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
- Any delay, interruption, or reduction in the supply of key raw materials such as leather and wood required to manufacture its products may adversely affect the company's business, results of operations, cash flows and financial condition.
- The company depends on limited suppliers for the supply of leather, one of its primary raw materials. The loss of one or more such suppliers could adversely affect its business, results of operations, financial condition and cash flows.
- If the company is unable to effectively manage or expand its retail network and operations or pursue its growth strategy, the company's new stores as well as its existing stores may not achieve the company expected level of profitability which may adversely affect its business prospects, financial condition and results of operations.
- The company is reliant on the company owned company operated stores for a majority of its sales. Any disruptions to the operations of these channels or limitations on its ability to expand and grow these channels may adversely affect its sales, cash flow and profitability.
- A portion of its revenue from operations is generated from certain of the company corporate customers. In the event such corporate customers does not continue to outsource manufacturing or avail its services, the company sales, cash flows and profitability may be adversely affected.
- Its funding requirements and the proposed deployment of Net Proceeds are not appraised by any bank financial institution, or any other independent agency, and the company has not entered into definitive agreements in relation to the objects of its Offer, which may affect the company's business and results of operations. Further, the schedule of the implementation of the Objects for which funds are being raised in the Offer is spread between Fiscal 2025 to Fiscal 2027 and is therefore subject to risk of cost escalations and other unanticipated delays in implementation.
- None of its Directors are or were directors of listed companies.
- Under-utilization of its existing manufacturing facilities and an inability to effectively utilize the company's manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.
- The company may requires financing to support its further developments or adapt to changes in business conditions, but its may not be able to obtain additional financing on favorable terms or at all.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- There have been delays in repayment of principal and payment of interest on vehicle loans availed by the Company and one of its Subsidiaries, namely Stanley Retail Limited, in the past. Any such delays in the future may impact its reputation and business operations.
- All of its COCO stores are operated by the company Subsidiaries. Any issues with the operations of the COCO stores will have an adverse impact on its business, cash flows and business operations.
- The premises of all of its COCO stores are leased. If the company fails to renew these leases on competitive terms or if the company is unable to manage its lease rental costs, its results of operations would be materially and adversely affected.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The average cost of acquisition of Equity Shares by the Promoters and the Selling Shareholders may be less than the Offer Price.
- The company is dependent on its Promoters, Directors and a number of Key Managerial and Senior Managerial Personnel and persons with technical expertise and the loss of or its inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.
- The Company will not receive the entire proceeds from the Offer. While the proceeds from the Fresh Issue will be received by the Company, the Selling Shareholders will receive certain part of proceeds from the Offer as part of the Offer for Sale.
- The company relies on its partners who are also shareholders in certain of the company Subsidiaries.
- The company has in the past, delayed in payment towards employees' provident fund contribution for certain employees. Any failures or delay in payment of such dues may expose it to statutory and regulatory action, as well as penalties, and may adversely impact its business, results of operations and financial condition.
- There have been certain instances of non- compliances, including with respect to certain regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties for any such non-compliance and its business, financial condition and reputation may be adversely affected.
- Its business is dependent on the company's manufacturing facilities and the company is subject to certain risks in its manufacturing processes. Any unscheduled, unplanned or prolonged disruption of its manufacturing operations could materially and adversely affect its business, financial condition, cash flows and results of operations.
- The company does not own premises for its Registered and Corporate Office and are held by it on a leasehold basis. Further, the company operates its warehouses and manufacturing facilities on parcels of land that are held by it on a leasehold basis. In the event the company lose or are unable to renew such leasehold rights, its business, results of operations, financial condition and cash flows may be adversely affected.
- There have been delays in settlement of dues owed to Micro, Medium and Small Enterprises.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Failures to effectively promote or develop the "Stanley" brand could materially and adversely affect its business performance and brand perception.
- Any failures in its quality control processes, as well as product liability and warranty claims and legal proceedings, if the quality of its products does not meet the company customers' expectations may have an adverse effect on its business, results of operations and financial condition.
- Failures to successfully implement its business strategy, effectively respond to changes in market dynamics and satisfactorily meet customer demand will cause its future financial results to suffer.
- The company is subject to risks associated with expansion into new geographic regions.
- Competition in the luxury furniture market, in particular, sofas may create pressures of pricing and market share that may adversely affect its business, prospects, results of operations, cash flows, and financial condition.
- Its manufacturing facilities are dependent on adequate and uninterrupted supply of power and fuel. Any shortage or disruption in electricity or fuel supply may lead to disruption in operations, higher operating cost and consequent decline in its operating margins.
- COVID-19 pandemic had a material impact on its business operations.
- The company provide product warranties and, if its product warranty obligations are significantly in excess of reserves, it business, financial condition and results of operations could be materially and adversely affected.
- The company has not incurred certain required portions of its profits towards corporate social responsibility ("CSR") requirements under the Companies Act 2013.
- Its business involves prolonged inventory days and extended cash conversion cycle. If the company is unable to anticipate and respond to changes in market demands, fashion trends and customer preferences in a timely and effective manner, its business, results of operations, cash flows and financial condition may be adversely affected.
- The company engage in foreign currency transactions, which expose it to adverse fluctuations in foreign exchange rates. Fluctuations in the exchange rate between the Rupee and other currencies may adversely affect its operating results.
- Its past performance may not be indicative of the company future growth. An inability to effectively manage its growth and expansion may have a material adverse effect on its business prospects and future financial performance.
- Its insurance coverage may not be sufficient or adequate to cover the company losses or liabilities. If the company is suffer a large uninsured loss or if its suffer an insured loss that significantly exceeds the company insurance coverage, its financial condition and results of operations may be adversely affected.
- The company has contingent liabilities and its financial condition could be adversely affected if any of these contingent liabilities materializes.
- The company has in this Red Herring Prospectus included certain Non-GAAP Measures and certain other industry measures related to its operations and financial performance. These Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Historical details of its profit after margin included in this Red Herring Prospectus are based on audited consolidated financial statements prepared under IGAAP while summary of financial statements about its Subsidiaries included in this Red Herring Prospectus are based on audited standalone financial statements prepared in accordance with Ind AS.
- Its ability to pay dividends in the future will depends on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- The audit report by its statutory auditors on Special Purpose Consolidated Ind AS Financial Statements as at and for the Financial Year 2021 has provided a matter of emphasis paragraphs.
- Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, financial condition, results of operations and cash flows.
- The company is dependent on third-party transportation providers for the supply of raw materials.
- Non-compliance with existing or changes to environmental, health and safety, labour laws and other applicable regulations by it may adversely affect its business, financial condition, results of operations and cash flows.
- There are outstanding legal proceedings involving the company, its Subsidiaries, its Directors and the company'sr Promoters. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
- Any lack of requisite approvals, licenses or permits applicable to its business operation may have an adverse impact on the company's business, financial condition and results of operations.
- Some of its lease/ license agreements have not been registered as required under the Registration Act, 1908. Consequently, its may experience business disruption, which could adversely affect its business, financial condition and result of operations.
- The company operations are reliant on its technology infrastructure and platform, and any failures to continue to improve and effectively utilize its technology infrastructure and platform or fully monetize and realize the benefits from new technologies could harm its business operations, reputation, financial condition and prospects.
- Strikes, work stoppages, increased wage demands or other employee disputes could adversely affect its operations.
- The company appoint contract labor for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations.
- Its Promoters will be able to exercise significant influence and control over it after the Offer and may have interests that are different from or conflict with those of its other shareholders.
- Industry information included in this Red Herring Prospectus has been derived from an industry report commissioned and paid by it for such a purpose.
- Its business, revenue from operations, financial condition and cash flows are impacted by the tailwinds of the Indian luxury furniture market.
- The company may enter into necessary or desirable strategic acquisitions, or make acquisitions, or investments to grow its business. Any failures to achieve the anticipated benefits from these strategic acquisitions, or investments with its existing business, could adversely affect the company.
- Certain of its Directors, Key Managerial Personnel and Senior Managerial Personnel have interests in the Company in addition to their remuneration and reimbursement of expenses.
- Its Group Company is involved in a similar line of business. Should the company faces any conflicts of interest with them in the future, its business, financial condition, results of operations and prospects may be adversely impacted.
- The company engage third parties for certain aspects of its operations and any failures to maintain the company relationships with them could have an adverse effect on its business, financial condition and results of operations.
- If the company experience a cyber security breach or other security incident or unauthorised parties otherwise obtain access to its data, the company reputation may be harmed, demand for its products may be reduced and its may incur significant liabilities, which could adversely affect the company's business and its reputation.
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The IPO opens on 21 Jun 2024 & closes on 25 Jun 2024.
Stanley Lifestyles Limited was originally formed as a Partnership Firm under the Partnership Act, 1932, in the name of Stanley Seating' through a Deed of Partnership dated February 1, 2007. The Company thereafter, incorporated as a Public Limited Company as Stanley Lifestyles Limited' upon its conversion from a Partnership Firm vide a fresh Certificate of Incorporation dated October 11, 2007 and a Certificate for Commencement of Business dated December 14, 2007 from the RoC. The Company is engaged in the business of manufacturing and trading of furniture and leather products.
The Promoters commenced operations by providing car seat leather upholstery services for leading global automotive brands and subsequently transitioned to retailing luxury furniture in India. By offering luxury leather upholstery, the Company opened retail store in Bengaluru, Karnataka in 2011. Further they transformed into a comprehensive provider of home solutions and are the only super-premium and luxury Indian brand that provide a wide range of home solutions offerings, such as sofas, arm chairs, kitchen cabinets, beds, mattresses and pillows, amongst others.
In 2011, the Company opened its first franchisee owned franchisee operated store in Kochi, Kerala; operated store in Bengaluru, Karnataka in 2012 and thereafter, opened in Chennai, Tamil Nadu. In 2018, the Company incorporated a Subsidiary, Shrasta Décor Private Limited (SDPL) and opened their first operated store in Hyderabad. It opened first store under Stanley Level Next' format to offer luxury products in 2019. The Company increased the count to 25 stores in 2021. In 2022, it expanded the network of stores by opening first company owned company operated' store in Delhi, which has increased the store count to more than 50 stores in 2023.
The Company launched an IPO by issuing 14,553,508 Equity Shares having the face value of Rs 2 each, by raising funds aggregating to Rs 537 Crore, comprising a fresh issue of 5,420,054 Equity Shares aggregating to Rs 200 Crore and 9133454 equity shares aggregating to Rs 337 Crore through offer for sale in June, 2024.
Stanley Lifestyles Ltd IPO will close on 25 Jun 2024.
- Largest and the fastest growing brand in the luxury/super-premium furniture segment.
- Comprehensive home furniture provider with offerings across categories and price points.
- Pan-India presence with strategically located stores.
- Focus on design-led product innovation.
- Vertically integrated manufacturer with skilled craftmanship capabilities.
- Efficient business model with track record of delivering financial growth.
- Promoter-led company with experienced professional and senior management team.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Sunil Suresh | 17375547 | 33.64 | 16193547 | 28.38 |
| 2 | Shubha Sunil | 17375533 | 33.64 | 16193533 | 28.38 |
- The company does not own the brand name "Stanley" which is registered in the name of one of its Promoters, Sunil Suresh. While the company has entered into the Assignment Deeds with Sunil Suresh, however, the trademarks are yet to be registered in its name. Further, one of its Promoters, Sunil Suresh has entered into a co-existence agreement with Stanley Furniture Company, Inc to limit and restrict the use of the term "Stanley" as a trademark in a composite manner in respect of products. In the event that the intellectual property rights to be assigned to it pursuant to the Assignment Deeds are not registered in its name in a timely manner or any breach or termination of the co-existence agreement occurs, it may adversely affect its business and financial condition.
- Its business is highly dependent on the sale of sofas and recliners. Variations in demand and changes in consumer preference for its sofa and recliner products could have an adverse effect on its business, results of operations and financial condition.
- The Company does not have any listed industry peers in India or abroad and it may be difficult to benchmark and evaluate its financial performance against other operators who operates in the same industry as the company.
- The company generated a substantial portion of its sales from its stores located in southern regions of India and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.
- Any delay, interruption, or reduction in the supply of key raw materials such as leather and wood required to manufacture its products may adversely affect the company's business, results of operations, cash flows and financial condition.
- The company depends on limited suppliers for the supply of leather, one of its primary raw materials. The loss of one or more such suppliers could adversely affect its business, results of operations, financial condition and cash flows.
- If the company is unable to effectively manage or expand its retail network and operations or pursue its growth strategy, the company's new stores as well as its existing stores may not achieve the company expected level of profitability which may adversely affect its business prospects, financial condition and results of operations.
- The company is reliant on the company owned company operated stores for a majority of its sales. Any disruptions to the operations of these channels or limitations on its ability to expand and grow these channels may adversely affect its sales, cash flow and profitability.
- A portion of its revenue from operations is generated from certain of the company corporate customers. In the event such corporate customers does not continue to outsource manufacturing or avail its services, the company sales, cash flows and profitability may be adversely affected.
- Its funding requirements and the proposed deployment of Net Proceeds are not appraised by any bank financial institution, or any other independent agency, and the company has not entered into definitive agreements in relation to the objects of its Offer, which may affect the company's business and results of operations. Further, the schedule of the implementation of the Objects for which funds are being raised in the Offer is spread between Fiscal 2025 to Fiscal 2027 and is therefore subject to risk of cost escalations and other unanticipated delays in implementation.
- None of its Directors are or were directors of listed companies.
- Under-utilization of its existing manufacturing facilities and an inability to effectively utilize the company's manufacturing capacities could have an adverse effect on its business, future prospects, and future financial performance.
- The company may requires financing to support its further developments or adapt to changes in business conditions, but its may not be able to obtain additional financing on favorable terms or at all.
- The company has in the past entered into related party transactions and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
- There have been delays in repayment of principal and payment of interest on vehicle loans availed by the Company and one of its Subsidiaries, namely Stanley Retail Limited, in the past. Any such delays in the future may impact its reputation and business operations.
- All of its COCO stores are operated by the company Subsidiaries. Any issues with the operations of the COCO stores will have an adverse impact on its business, cash flows and business operations.
- The premises of all of its COCO stores are leased. If the company fails to renew these leases on competitive terms or if the company is unable to manage its lease rental costs, its results of operations would be materially and adversely affected.
- Any variation in the utilization of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.
- The average cost of acquisition of Equity Shares by the Promoters and the Selling Shareholders may be less than the Offer Price.
- The company is dependent on its Promoters, Directors and a number of Key Managerial and Senior Managerial Personnel and persons with technical expertise and the loss of or its inability to attract or retain such persons could adversely affect its business, results of operations and financial condition.
- The Company will not receive the entire proceeds from the Offer. While the proceeds from the Fresh Issue will be received by the Company, the Selling Shareholders will receive certain part of proceeds from the Offer as part of the Offer for Sale.
- The company relies on its partners who are also shareholders in certain of the company Subsidiaries.
- The company has in the past, delayed in payment towards employees' provident fund contribution for certain employees. Any failures or delay in payment of such dues may expose it to statutory and regulatory action, as well as penalties, and may adversely impact its business, results of operations and financial condition.
- There have been certain instances of non- compliances, including with respect to certain regulatory filings for corporate actions taken by the Company in the past. Consequently, its may be subject to regulatory actions and penalties for any such non-compliance and its business, financial condition and reputation may be adversely affected.
- Its business is dependent on the company's manufacturing facilities and the company is subject to certain risks in its manufacturing processes. Any unscheduled, unplanned or prolonged disruption of its manufacturing operations could materially and adversely affect its business, financial condition, cash flows and results of operations.
- The company does not own premises for its Registered and Corporate Office and are held by it on a leasehold basis. Further, the company operates its warehouses and manufacturing facilities on parcels of land that are held by it on a leasehold basis. In the event the company lose or are unable to renew such leasehold rights, its business, results of operations, financial condition and cash flows may be adversely affected.
- There have been delays in settlement of dues owed to Micro, Medium and Small Enterprises.
- If the company is unable to establish and maintain an effective internal controls and compliance system, its business and reputation could be adversely affected.
- Failures to effectively promote or develop the "Stanley" brand could materially and adversely affect its business performance and brand perception.
- Any failures in its quality control processes, as well as product liability and warranty claims and legal proceedings, if the quality of its products does not meet the company customers' expectations may have an adverse effect on its business, results of operations and financial condition.
- Failures to successfully implement its business strategy, effectively respond to changes in market dynamics and satisfactorily meet customer demand will cause its future financial results to suffer.
- The company is subject to risks associated with expansion into new geographic regions.
- Competition in the luxury furniture market, in particular, sofas may create pressures of pricing and market share that may adversely affect its business, prospects, results of operations, cash flows, and financial condition.
- Its manufacturing facilities are dependent on adequate and uninterrupted supply of power and fuel. Any shortage or disruption in electricity or fuel supply may lead to disruption in operations, higher operating cost and consequent decline in its operating margins.
- COVID-19 pandemic had a material impact on its business operations.
- The company provide product warranties and, if its product warranty obligations are significantly in excess of reserves, it business, financial condition and results of operations could be materially and adversely affected.
- The company has not incurred certain required portions of its profits towards corporate social responsibility ("CSR") requirements under the Companies Act 2013.
- Its business involves prolonged inventory days and extended cash conversion cycle. If the company is unable to anticipate and respond to changes in market demands, fashion trends and customer preferences in a timely and effective manner, its business, results of operations, cash flows and financial condition may be adversely affected.
- The company engage in foreign currency transactions, which expose it to adverse fluctuations in foreign exchange rates. Fluctuations in the exchange rate between the Rupee and other currencies may adversely affect its operating results.
- Its past performance may not be indicative of the company future growth. An inability to effectively manage its growth and expansion may have a material adverse effect on its business prospects and future financial performance.
- Its insurance coverage may not be sufficient or adequate to cover the company losses or liabilities. If the company is suffer a large uninsured loss or if its suffer an insured loss that significantly exceeds the company insurance coverage, its financial condition and results of operations may be adversely affected.
- The company has contingent liabilities and its financial condition could be adversely affected if any of these contingent liabilities materializes.
- The company has in this Red Herring Prospectus included certain Non-GAAP Measures and certain other industry measures related to its operations and financial performance. These Non-GAAP Measures and industry measures may vary from any standard methodology that is applicable across the industry, and therefore may not be comparable with financial or industry related statistical information of similar nomenclature computed and presented by other companies.
- Historical details of its profit after margin included in this Red Herring Prospectus are based on audited consolidated financial statements prepared under IGAAP while summary of financial statements about its Subsidiaries included in this Red Herring Prospectus are based on audited standalone financial statements prepared in accordance with Ind AS.
- Its ability to pay dividends in the future will depends on the company earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- The audit report by its statutory auditors on Special Purpose Consolidated Ind AS Financial Statements as at and for the Financial Year 2021 has provided a matter of emphasis paragraphs.
- Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, financial condition, results of operations and cash flows.
- The company is dependent on third-party transportation providers for the supply of raw materials.
- Non-compliance with existing or changes to environmental, health and safety, labour laws and other applicable regulations by it may adversely affect its business, financial condition, results of operations and cash flows.
- There are outstanding legal proceedings involving the company, its Subsidiaries, its Directors and the company'sr Promoters. Any adverse outcome in such proceedings may have an adverse impact on its reputation, business, financial condition, results of operations and cash flows.
- Any lack of requisite approvals, licenses or permits applicable to its business operation may have an adverse impact on the company's business, financial condition and results of operations.
- Some of its lease/ license agreements have not been registered as required under the Registration Act, 1908. Consequently, its may experience business disruption, which could adversely affect its business, financial condition and result of operations.
- The company operations are reliant on its technology infrastructure and platform, and any failures to continue to improve and effectively utilize its technology infrastructure and platform or fully monetize and realize the benefits from new technologies could harm its business operations, reputation, financial condition and prospects.
- Strikes, work stoppages, increased wage demands or other employee disputes could adversely affect its operations.
- The company appoint contract labor for carrying out certain of its operations and the company may be held responsible for paying the wages of such workers if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its results of operations.
- Its Promoters will be able to exercise significant influence and control over it after the Offer and may have interests that are different from or conflict with those of its other shareholders.
- Industry information included in this Red Herring Prospectus has been derived from an industry report commissioned and paid by it for such a purpose.
- Its business, revenue from operations, financial condition and cash flows are impacted by the tailwinds of the Indian luxury furniture market.
- The company may enter into necessary or desirable strategic acquisitions, or make acquisitions, or investments to grow its business. Any failures to achieve the anticipated benefits from these strategic acquisitions, or investments with its existing business, could adversely affect the company.
- Certain of its Directors, Key Managerial Personnel and Senior Managerial Personnel have interests in the Company in addition to their remuneration and reimbursement of expenses.
- Its Group Company is involved in a similar line of business. Should the company faces any conflicts of interest with them in the future, its business, financial condition, results of operations and prospects may be adversely impacted.
- The company engage third parties for certain aspects of its operations and any failures to maintain the company relationships with them could have an adverse effect on its business, financial condition and results of operations.
- If the company experience a cyber security breach or other security incident or unauthorised parties otherwise obtain access to its data, the company reputation may be harmed, demand for its products may be reduced and its may incur significant liabilities, which could adversely affect the company's business and its reputation.
The Issue type of Stanley Lifestyles Ltd is Book Building.
The minimum application for shares of Stanley Lifestyles Ltd is 40.
The total shares issue of Stanley Lifestyles Ltd is 14553508.
Initial public offer of 14,553,508 equity shares of face value of Rs. 2 each ("Equity Shares") of Stanley Lifestyles Limited ("Company" or "Issuer") for cash at a price of Rs. 369 per equity share (including a share premium of
Rs. 367 per equity share) ("Offer Price") aggregating up to Rs. 537.02 crores comprising a fresh issue of 5,420,054 equity shares aggregating up to Rs. 200.00 crores by the company ("Fresh Issue") and an offer for sale of 9,133,454 equity shares aggregating up to Rs. 337.02 crores ("Offered Shares") by the selling shareholders, comprising 1,182,000 equity shares aggregating to Rs. 43.62 crores by Sunil Suresh and 1,182,000 equity shares aggregating to Rs. 43.62 crores by Shubha Sunil (collectively the "Promoter Selling Shareholders"), up to 5,544,454 equity shares aggregating to
Rs. 204.59 crores by Oman India joint investment fund ii, acting through its trustee oman india joint investment fund trustee company private limited, represented by its investment manager, oman india joint investment fund - management company private limited ("Oman India joint investment fund ii") (the "Investor Selling Shareholder"), and 1,000,000 equity shares aggregating to Rs. 36.90 crores by Kiran Bhanu Vuppalapati, and 225,000 equity shares aggregating to Rs. 8.30 crores by Sridevi Venkata Vuppalapati (collectively "Individual Selling Shareholders") (the promoter selling shareholders, the investor selling shareholder and the individual selling shareholders, collectively referred to as the "Selling Shareholders") ("Offer for Sale", together with the fresh issue, the "Offer").
The face value of equity shares is Rs. 2 each. The offer price is 184.50 times the face value of the equity shares.
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