Stanley Lifestyles IPO Day 2: GMP, subscription status to review. Apply or not?

Stanley Lifestyles IPO: The initial public offering (IPO) of Stanley Lifestyles Limited commenced on 21st June 2024, and will continue until 25th June 2024. The IPO was met with a strong response from primary market investors, with the public offer being fully subscribed on the first day of bidding. In the grey market, shares of Stanley Lifestyles Limited are currently trading at a premium of ₹172.

Stanley Lifestyles IPO GMP

According to market observers, Stanley Lifestyles' IPO GMP (grey market premium) today is ₹172, ₹12 higher than the weekend GMP for the book build issue. The GMP measures the premium at which the IPO shares are trading in the grey market, indicating market sentiment and potential listing gains. They said that positive sentiments in the secondary market and vital Stanley Lifestyles IPO subscription status after day one of bidding could be the reasons for the rise in Stanley Lifestyles IPO GMP. They said that frontline Indian indices ended lower on Friday, and any rise in these indices may spurt further upside in the public issue.

Stanley Lifestyles IPO subscription status

After day one of bidding, the public issue was booked 1.43 times, whereas the NII portion was subscribed 2.01 times. The QIB segment was filled 0.30 times, while the retail portion of the mainboard IPO was booked 1.80 times.

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By 2:57 PM on day 2 of bidding, the book build issue has been subscribed 4.00 times, the retail portion was booked 5.12 times, the NII portion was subscribed 6.08 times whereas the QIB portion got booked 0.31 times.

Stanley Lifestyles IPO review

Expert reviews of the Stanley Lifestyles IPO have been highly positive. The company, a key player in the premium and luxury furniture segment, is well-positioned for growth with a strong brand and a manu-retail model. The industry dynamics, with a rising demand for premium and luxury furniture, further support the company's growth potential. The company's plans for brand renovation and expansion are expected to generate additional business. At the upper band of INR 369, the issue is valued at a PE of 84.4x based on FY24 TTM EPS of INR 4.4. We recommend a 'Subscribe for Listing gain' for this issue, reflecting our optimism about its growth potential.

Geojit Finance has also given this public offer a 'buy' tag, which means they believe the stock is undervalued and has the potential to provide reasonable returns in the long term. They said, "At the upper price band of Rs.369, SLL trades at a Mcap/sales ratio 5x (annualized FY24 basis). The company benefits from strong brand recognition, a manu-retail model, expansion of new stores, an increasing number of affluent households, and favourable trends in the real estate sector. These factors are expected to drive significant growth for the company. Therefore, we recommend a 'Subscribe' rating for the long term."

Not only has Arihant Capital given a 'subscribe' tag to the Stanley Lifestyles IPO, but other reputable financial institutions such as Anand Rathi, Indsec Securities, Reliance Securities, Sushil Finance, and Swastika Investment have also recommended applying for the public issue. This consensus among experts further reinforces the potential of the IPO and should give investors confidence in their decision to subscribe.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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