Stanley Lifestyles Ltd IPO

The company does not own the brand name "Stanley" which is registered in the name of one of its Promoters, Sunil Suresh. While the company has entered into the Assignment Deeds with Sunil Suresh, however, the trademarks are yet to be registered in its name. Further, one of its Promoters, Sunil Suresh has entered into a co-existence agreement with Stanley Furniture Company, Inc to limit and restrict the use of the term "Stanley" as a trademark in a composite manner in respect of products. In the event that the intellectual property rights to be assigned to it pursuant to the Assignment Deeds are not registered in its name in a timely manner or any breach or termination of the co-existence agreement occurs, it may adversely affect its business and financial condition.

Its business is highly dependent on the sale of sofas and recliners. Variations in demand and changes in consumer preference for its sofa and recliner products could have an adverse effect on its business, results of operations and financial condition.

The Company does not have any listed industry peers in India or abroad and it may be difficult to benchmark and evaluate its financial performance against other operators who operates in the same industry as the company.

The company generated a substantial portion of its sales from its stores located in southern regions of India and any adverse developments affecting its operations in these regions could have an adverse impact on its revenue and results of operations.

Any delay, interruption, or reduction in the supply of key raw materials such as leather and wood required to manufacture its products may adversely affect the company's business, results of operations, cash flows and financial condition.

The company depends on limited suppliers for the supply of leather, one of its primary raw materials. The loss of one or more such suppliers could adversely affect its business, results of operations, financial condition and cash flows.

If the company is unable to effectively manage or expand its retail network and operations or pursue its growth strategy, the company's new stores as well as its existing stores may not achieve the company expected level of profitability which may adversely affect its business prospects, financial condition and results of operations.

The company is reliant on the company owned company operated stores for a majority of its sales. Any disruptions to the operations of these channels or limitations on its ability to expand and grow these channels may adversely affect its sales, cash flow and profitability.

A portion of its revenue from operations is generated from certain of the company corporate customers. In the event such corporate customers does not continue to outsource manufacturing or avail its services, the company sales, cash flows and profitability may be adversely affected.

Its funding requirements and the proposed deployment of Net Proceeds are not appraised by any bank financial institution, or any other independent agency, and the company has not entered into definitive agreements in relation to the objects of its Offer, which may affect the company's business and results of operations. Further, the schedule of the implementation of the Objects for which funds are being raised in the Offer is spread between Fiscal 2025 to Fiscal 2027 and is therefore subject to risk of cost escalations and other unanticipated delays in implementation.