Highlights
Purple Style Labs Plans Rs 660 Crore IPO for Pernia’s Pop-Up Shop
Purple Style Labs, the parent organisation of the high-end fashion platform Pernia’s Pop-Up Shop, has submitted draft documents with SEBI aiming to collect Rs 660 crore via an initial public offering. The draft red herring prospectus indicates that the offering will be entirely a new issue of equity shares, with plans for listing on both the NSE and BSE. The organisation may also contemplate a pre-IPO placement of up to Rs 130 crore, potentially reducing the size of the fresh issue correspondingly.
Axis Capital and IIFL Capital Services are designated as the lead managers for the offering, while Intime Kfin Technologies will fulfil the role of registrar.
Utilisation of Funds Raised from IPO
Purple Style Labs intends to allocate Rs 363.3 crore from the net proceeds towards investing in its wholly-owned subsidiary, PSL Retail, specifically for lease liabilities associated with experience centres and back-end offices in India. Additionally, Rs 128 crore has been designated for sales and marketing efforts, while the remainder will be applied to general corporate purposes.
According to the draft red herring prospectus, founder Abhishek Agarwal owns 27.1% of the company, while investors such as Volrado Venture Partners hold 2.9%, Abhinav Agarwal possesses 0.25%, and Singularity Growth Opportunities Fund has a stake of 1.93%.
On the financial outcome, Purple Style Labs witnessed a slight decrease in operating revenue to Rs 490 crore in FY25, down from Rs 504 crore in FY24. Nevertheless, losses expanded nearly fourfold to Rs 188.5 crore during the same timeframe, primarily due to ESOP expenses of Rs 122.7 crore.
Recent Funding Activity
Earlier in March, the organisation secured approximately $40 million (Rs 332 crore) in a Series E funding round led by SageOne Flagship Growth OE Fund and Alchemy Long Term Ventures Fund, with notable participation from celebrities, including Salman Khan and Sachin Tendulkar.
