Stanley Lifestyles files for IPO

New Delhi: Luxury furniture brand Stanley Lifestyles has filed its preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 200 crore and an offer-for-sale (OFS) component of 91.33 lakh equity shares by the company’s promoters, investor and other shareholders, as per the draft red herring prospectus (DRHP) filed on Monday. The OFS consists of sale of 11.82 lakh shares each by promoters -- Sunil Suresh and Shubha Sunil, up to 55.44 lakh equity shares by Oman India Joint Investment Fund II, up to 10 lakh shares by Kiran Bhanu Vuppalapati and up to 2.25 lakh shares by Sridevi Venkata Vuppalapati.

The company may also consider a pre-IPO placement aggregating up to Rs 40 crore and if such placement is completed, the size of the fresh issue will be reduced. The net proceeds from the fresh issue to the tune of Rs 90.13 crore will be used by the company for expenditure for opening the new stores, Rs 39.99 crore expenditure for opening the anchor stores and Rs 10.04 crore expenditure for renovation of existing stores. Funds to the tune of 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 (Stanley OEM Sofas Ltd) and for general corporate purposes.