The company will use proceeds from the fresh issue to the tune of Rs 90.13 crore 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
New Delhi: Luxury furniture brand Stanley Lifestyles has received capital markets regulator Sebi’s go-ahead to raise funds through initial public offerings (IPOs).
The company, which filed its preliminary IPO papers with the capital markets regulator obtained observation letters from the watchdog from November 29-30, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.
In Sebi’s parlance, obtaining its observation letter means its go-ahead to launch the IPO.
The proposed initial share sale of Stanley Lifestyles comprises fresh issuance of equity shares worth Rs 200 crore and an OFS component of 91.33 lakh equity shares by the company’s promoters, investors and other shareholders, according to the draft red herring prospectus (DRHP).
The company will use proceeds from the fresh issue to the tune of Rs 90.13 crore 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.
Additionally, funds to the tune of Rs 8.18 crore for funding the capital expenditure requirements for purchasing new machinery and equipment by the company and its material subsidiary, SOSL (Stanley OEM Sofas Ltd), and for general corporate purposes.
Bengaluru-based Stanley Lifestyles is a luxury furniture brand with a market share of 5.61% in revenue. It is also among the few home-grown luxury consumer brands in the country operating at scale in terms of manufacturing as well as retail operations.
The equity shares of both companies will be listed on the NSE and BSE.
