Purple Style Labs IPO Day 3: Purple Style Labs’ initial public offering (IPO), which opened for bidding on Monday, August 31, will close today, Wednesday, September 2. The company has set the price band for the ₹720 crore issue at ₹546-575 per share.
The public offering is a completely fresh issue of 1.18 crore equity shares, with no offer-for-sale (OFS) component. Purple Style Labs has also drawn considerable attention because of its high-profile investor base. Bollywood actors Shah Rukh Khan and Madhuri Dixit, along with cricket legend Sachin Tendulkar, are among the prominent investors in the company. Other publicly disclosed celebrity investors include Salman Khan and his family, as well as actor Mahesh Babu.
Investors can apply for the IPO in lots of 26 shares. At the upper end of the price band, an individual investor needs to invest a minimum of ₹14,950 to apply for one lot.
The basis of allotment is likely to be finalised on Thursday, September 3. Successful applicants are expected to receive shares in their demat accounts on Friday, September 4, while the refund process for unsuccessful bidders is also expected to begin on the same day. Purple Style Labs’ shares are tentatively scheduled to list on the BSE and NSE on September 7.
Purple Style Labs intends to use the net proceeds raised through the public issue for several business requirements. The biggest portion, amounting to ₹371.13 crore, has been earmarked for investment in its wholly owned subsidiary, PSL Retail. These funds will be used to meet expenditure related to lease liabilities for Experience Centres and back-end offices across India.
The company has also set aside ₹138.90 crore towards sales and marketing expenses. This allocation is intended to support its expansion plans, customer acquisition efforts and brand-building initiatives. The remaining proceeds will be utilised for general corporate purposes. Overall, the company expects to generate net proceeds of ₹510.03 crore from the issue.
Axis Capital Ltd. is managing the issue as the book-running lead manager, while Kfin Technologies Ltd. has been appointed as the registrar to the IPO.
Purple Style Labs IPO GMP Today
Investor sentiment towards the IPO remained muted, with its grey market premium (GMP) standing at ₹2 on September 2. Based on this premium, the stock was expected to list at around ₹577, representing a modest 0.35% premium over the IPO price.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Purple Style Labs IPO subscription status
Purple Style Labs’ IPO entered its third day of subscription, with bidding set to begin at 10 am. The issue received a muted response on the second day, with the overall subscription reaching 24% against the 68.49 lakh shares on offer. The retail investor category, however, saw comparatively stronger demand.
Should you subscribe?
Anand Rathi has a subscribe for long term rating for the issue. As er the brokerages, the company offers a wide range of premium designer products across womenswear, menswear, jewellery, accessories and kidswear, with a strong focus on wedding and occasion wear. It’s integrated online and offline model enables it to serve customers across domestic and international markets, while its growing physical Experience Center network strengthens customer engagement and provides an immersive luxury shopping experience. Its expansion into menswear, jewellery, accessible luxury and international markets provides additional avenues for growth, although profitability and execution remain key monitorable factors.
“At the upper price band, the company is valued at P/S of 8.3x based on FY26 earnings, with a post-issue market capitalization of ₹46,035 million. We believe that the IPO is fully priced and recommend a “Subscribe – Long Term” rating to the IPO,” it said.
However, Swastika Investmart has an ‘avoid’ rating for the issue. The brokerage pointed out that the firm’s PAT loss ballooned from ₹477 mn (FY24) to ₹1,884 mn (FY25) to ₹2,854 mn (FY26), with no visible path to breakeven. It added that P/E and P/B are not meaningful due to losses and negative net worth. The company also has no listed peers for comparison.
“At 9.3–9.6x FY26 revenue, the IPO valuation appears expensive for a loss-making business. Around 55% of net proceeds will go toward lease liabilities, while ₹1,389 mn is allocated to marketing, with limited funds for growth investments. Given the widening losses, negative net worth, and high valuation, we recommend avoiding the IPO,” it noted.
About Purple Style Labs
Purple Style Labs operates Pernia’s Pop-Up Shop, a multi-brand luxury fashion platform with an omni-channel business model. The company brought Pernia’s Pop-Up Shop under its umbrella in February 2018, when the platform’s operations were largely centred on online sales.
Since then, Purple Style Labs has focused on building a much larger offline presence alongside its digital business. According to the company’s DRHP, Pernia’s Pop-Up Shop had expanded to 14 Experience Centres spread across India and London. The company also had plans to further extend its footprint with new locations proposed in Mumbai and New York. Purple Style Labs reported revenue of ₹508 crore in FY24.
While the company’s restated consolidated financial statements show that Purple Style Labs reported a loss in FY2026, its revenue growth over the past few years has been substantial. The company’s revenue increased more than 11-fold, rising from ₹45 crore in FY20 to ₹508 crore in FY24. This translates into an approximately 83% compound annual growth rate.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
