Inox India, Stanley Lifestyles Get Sebi's Approval for IPOs

New Delhi, Dec 5 (PTI) Cryogenic tank maker Inox India and luxury furniture brand Stanley Lifestyles have received capital markets regulator Sebi's go ahead to raise funds through initial public offerings (IPOs).

The two companies, which filed their preliminary IPO papers with the capital markets regulator in August and September, obtained observation letters from the watchdog during 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.


Going by the draft papers, Inox India's IPO is entirely an Offer For Sale (OFS) of up to 2.21 crore shares by its existing shareholders and promoters.

Since the issue is completely an OFS, the Vadodara-based company will not receive any proceeds and all the funds will go to the selling shareholders.

Inox India, one of the leading cryogenic tank manufacturers, has over 30 years of experience offering solutions across the design, engineering, manufacturing, and installation of equipment and systems for cryogenic conditions.

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, investor and other shareholders, according to the draft red herring prospectus (DRHP).

Proceeds from the fresh issue to the tune of Rs 90.13 crore will be used by the company 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 purchase of 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 per cent in terms of 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 NSE and BSE.