Stanley Lifestyles makes strong stock market debut, but falls short of expectations

Stanley Lifestyles, a prominent luxury furniture brand in India, has made a significant debut on the stock exchanges, listing at ₹494.95 per share. This marks a gain of 34.13 per cent over its issue price of ₹369.

Shivani Nyati, Head of Wealth at Swastika Investmart, said that while the debut is positive, it has fallen short of pre-listing expectations, which anticipated an even higher premium due to the overwhelming investor response.

The strong listing evidently reflected investor confidence in Stanley Lifestyles’ established brand, diverse product portfolio, and consistent financial performance. However, concerns have been raised regarding the high IPO valuation and identified risks such as dependence on sofa and recliner sales and geographical concentration.

The debut has prompted suggestions for existing investors to hold their shares with a suggested stop loss of 450, indicating a cautious approach in light of the stock’s performance.