Purple Style Labs share price made a weak debut on the bourses today, Monday, 7 September. On NSE, Purple Style Labs share price opened at ₹535 per share, 6.96% lower than the issue price of ₹575. On BSE, the stock opened at ₹539 apiece, down 6.26% than the issue price.
The initial public offering (IPO) of Purple Style Labs Ltd, the parent company of Pernia’s Pop-Up Shop, was subscribed 1.29 times on the final day of bidding on Wednesday, according to data from the NSE.
The issue received bids for 88,66,572 shares against the 68,49,816 shares on offer. The retail investor portion was subscribed 1.58 times, while the quota reserved for qualified institutional buyers (QIBs) was subscribed 1.43 times. The non-institutional investor (NII) segment was subscribed 84%.
Ahead of the IPO, Purple Style Labs raised ₹306 crore from anchor investors on Friday.
Founded and promoted by Abhishek Agarwal, Purple Style Labs operates a multi-brand luxury fashion omnichannel platform. Its publicly disclosed celebrity investors include Shah Rukh Khan, Salman Khan and his family, Sachin Tendulkar, Madhuri Dixit and Mahesh Babu.
The company currently offers more than 2 lakh products from over 1,300 designers through its digital platform and 14 experience centres.
Purple Style Labs IPO GMP today is -10. Considering the upper end of the IPO price band and the current discount in the grey market, the estimated listing price of Purple Style Labs share price was indicated at ₹565 apiece, which is 1.74% lower than the IPO price of ₹575.
Purple Style Labs IPO details
Purple Style Labs IPO comprises entirely a fresh issue of equity shares worth up to ₹680 crore, with no offer-for-sale (OFS) component. The company has set the IPO price band at ₹546-575 per share.
At the upper end of the price band, the issue gives Purple Style Labs a market capitalisation of more than ₹4,600 crore.
The company plans to allocate ₹371.13 crore of the IPO proceeds towards investments in its wholly owned subsidiary, PSL Retail. These funds will be used to meet lease liabilities for experience centres and back-end offices across India. Another ₹138.90 crore has been earmarked for sales and marketing activities, while the balance will be utilised for general corporate purposes.
Axis Capital and IIFL Capital Services are acting as the book-running lead managers for the issue, while KFin Technologies is the registrar.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
