Stanley Lifestyles IPO Subscription Status

Stanley Lifestyles IPO - Day-3 Subscription at 96.98 times

As of 6.55 pm on 25th June 2024, out of the 102.42 lakh shares on offer in the IPO (excluding the anchor portion), Stanley Lifestyles saw bids for 9,932.30 lakh shares. This implies an overall subscription of 96.98X at a macro level. The granular break-up of subscriptions as of the close of Day-3 of the IPO of Stanley Lifestyles IPO was as under:

The subscriptions were led by the QIB investors followed by the HNI / NII investors and then by the retail investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick up momentum on the last day since that is when the bulk HNI funding bids, corporate bids, and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription ratio excludes the anchor portion.

Data Source: BSE

The IPO is open until 25th June 2024, at which point we will know the final subscription status of the IPO. As of today, the IPO has closed for subscription and the above table represents the final subscription numbers of the IPO.

The IPO of Stanley Lifestyles comprises the issue and sale of 1,45,53,508 shares, which at the upper end of the price band of ₹369 per share aggregates to a total issue size of ₹537.02 crore. The IPO of Stanley Lifestyles will be listed on the NSE and the BSE on the IPO mainboard. The issue closed for subscription on 25th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 27th June 2024 under ISIN (INE01A001028).

Stanley Lifestyles IPO (Day-2 Subscription at 5.22 times)

As of 5.25 pm on 24th June 2024, out of the 102.42 lakh shares on offer in the IPO (excluding anchor portion), Stanley Lifestyles saw bids for 535.04 lakh shares. This implies an overall subscription of 5.22X at a macro level. The granular break-up of subscriptions as of the close of the Day-2 of the Stanley Lifestyles IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to June 25, 2024, at which point we will know the final subscription status of the IPO. As of today, it is only the updated as of the end of Day-1 of the IPO.

The IPO of Stanley Lifestyles comprises of the issue and sale of 1,45,53,508 shares which at the upper end of the price band of ₹369 per share aggregates to total issue size of ₹537.02 crore. The IPO of Stanley Lifestyles will be listed on the NSE and the BSE on the IPO mainboard. The issue closes for subscription on 25th June 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 27th June 2024 under ISIN (INE01A001028).

Stanley Lifestyles (Day-1 Subscription at 1.44 times)

As of 5.15 pm on 21st June 2024, out of the 102.42 lakh shares on offer in the IPO (excluding anchor portion), Stanley Lifestyles saw bids for 146.974 lakh shares. This implies an overall subscription of 1.44X at a macro level. The granular break-up of subscriptions as of the close of the first day of the Stanley Lifestyles IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to June 25, 2024, at which point we will know the final subscription status of the IPO. As of today, it is only the updated as of the end of Day-1 of the IPO.

Stanley Lifestyles – Share Allocation Across Categories

The entire anchor allocation was made at the upper end of the price band of ₹369 per share. This includes the face value of ₹2 per share plus a share premium of ₹367 per share, taking the anchor allocation price to ₹369 per share. Let us focus on the anchor allotment portion ahead of the Stanley Lifestyles Ltd IPO, which saw the anchor bidding opening and also closing on 20th June 2024. Post the anchor allocation, here is how the overall allocation looked.

Data Source: Company RHP

Here it must be noted that the 43,66,051 shares allocated to the anchor investors on 20th June 2024, were actually reduced from the original QIB quota; and only the residual amount would be available to QIBs in the IPO. That change has been reflected in the table above, with the QIB IPO portion reduced to the extent of the anchor allocation. As a result, the QIB quota has reduced from 49.23% before the anchor allocation to 19.34% after the anchor allocation. The overall allocation to QIBs includes the anchor portion, so the anchor shares allotted has been deducted from the QIB quota for the purpose of the public issue.

The total anchor allocation was worth Rs161.61 crore and was spread across 16 anchor investors. All the anchor investors got more than 3% allocation of the anchor quota each at the bare minimum. The anchor bidding opened and also closed on the same day; June 20, 2024. Out of the total anchor allocation, half of the anchor allocated shares will be locked in for a period of 30 days till July 26, 2024; while the balance 50% will be locked in for a period of 3 months up to September 24, 2024.

About the IPO of Stanley Lifestyles

The IPO of Stanley Lifestyles will be a combination of a fresh issue of shares and offer for sale (OFS) component. The fresh issue brings in fresh funds into the company, but is also EPS and equity dilutive. The OFS is just a transfer of ownership; and hence neither EPS nor equity dilutive. The fresh issue portion of the IPO of Stanley Lifestyles comprises the issue of 54,20,054 shares (54.20 lakh shares approximately), which at the upper price band of ₹369 per share will translate into a fresh issue size of ₹200.00 crore. The offer for sale (OFS) portion of the IPO of Stanley Lifestyles comprises the sale / offer of 91,33,454 shares (91.33 lakh shares approximately), which at the upper price band of ₹369 per share will translate into an OFS size of ₹337.02 crore. 

The 91.33 lakh shares in the OFS is being offered by a mix oof promoter shareholders and investor shareholders. The selling promoter shareholders include; Sunil Suresh (11.82 lakh shares) and Shubha Sunil (11.82 lakh shares). The selling investor shareholders include; Oman India Joint Investment Fund (55.44 lakh shares), Kiran Vuppalapati (10 lakh shares), and Sridevi Vuppalapati (2.25 lakh shares). Therefore, the total IPO of Stanley Lifestyles will comprise of a fresh issue and an OFS of 1,45,53,508 shares (145.54 lakh shares approximately) which at the upper end of the price band of ₹369 per share aggregates to total issue size of ₹537.02 crore. However, it must be noted that the final tally of shares could change marginally from the original announcement. That is reflected in the share allocation break-up for anchor allocation. The IPO of Stanley Lifestyles will be listed on the NSE and the BSE on the IPO mainboard.

The fresh funds will be used for opening Stanley Level Next and Stanley Boutique stores, apart from anchor stores. Part of the funds will also go towards capex for its centre in Bengaluru. The promoters of the company are Sunil Suresh and Shubha Sunil. The promoters currently have a 67.36% stake in the company, which will get diluted post the IPO to 56.81%. The IPO will be lead managed by Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets; while KFIN Technologies Ltd will be the IPO registrar.

Next Steps in the Stanley Lifestyles

The issue opens for subscription on 21st June 2024 and closes for subscription on 25th June 2024 (both days inclusive). The basis of allotment will be finalized on 26th June 2024 and the refunds will be initiated on 27th June. In addition, the demat credits are expected to also happen on 27th June 2024 and the stock will list on 28th June 2024 on the NSE and the BSE. Stanley Lifestyles will test the appetite for private sector lifestyle furniture retailing business. The credits to the demat account to the extent of shares allotted will happen by the close of 27th June 2024 under ISIN (INE01A001028).