Purple Style Labs IPO Opens with Tepid Day 1 Subscription; Analysts Split on Valuation
Purple Style Labs, the parent of luxury fashion platform Pernia’s Pop-Up Shop (PPUS), launched its initial public offering on August 31, 2026, with a price band of ₹546 to ₹575 per share. The issue, which closes on September 2, 2026, saw a muted response on Day 1, with total subscription at 03 times, according to data from the exchanges.
Day 1 Subscription Overview
On the first day, retail investors showed the most interest, with the retail category subscribed at 13 times. Qualified institutional buyers (QIBs) and high-net-worth individuals (bHNI) saw no bids, while the sHNI category was subscribed at 03 times. Overall, the issue was subscribed 03 times by the end of the day.
Company Profile
Purple Style Labs, incorporated in August 2015, operates Pernia’s Pop-Up Shop, described as one of India’s largest multi-brand luxury omnichannel fashion platforms. The company offers a curated portfolio of 1,109 active designer brands across womenswear, menswear, jewellery, accessories, and kidswear, with a focus on wedding and occasion wear. It serves customers through Experience Centers, online platforms, and events, and is led by CEO Abhishek Agarwal and COO Abhinav Agarwal.
Financial Performance and Risks
The company’s revenue from operations grew to 84 crore in FY26 from 37 crore in FY24. However, losses widened significantly to 40 crore in FY26 from 38 crore in FY25, and total equity turned negative at 28 crore. The company’s loss after tax increased to 99 million in Fiscal 2026, and total borrowings stood at 02 million as of March 31, 2026.
SBI Securities noted that revenue growth remained modest, while EBITDA declined and losses widened through FY26. The brokerage attributed margin contraction to a higher mix of liquidation inventory and GST-related changes. SBI Securities assigned a 'neutral' rating, stating that any improvement in profitability would depend on the maturity of experience centres to absorb higher fixed costs.
Brokerage Views
The IPO has received mixed responses from analysts. Anand Rathi Research valued the company at a price-to-sales (P/S) multiple of 3 times based on FY26 earnings and gave a 'subscribe for long-term' rating, noting the company's diversified designer portfolio and omnichannel presence. BP Equities assigned an 'avoid' rating, citing a demanding P/S multiple and competitive intensity. KC Securities gave a 'neutral' view, citing a valuation of 7 times FY26 EV/Sales and a FY24-26 revenue CAGR of only 2%. Master Capital Services also gave a 'subscribe for long-term' rating, highlighting the expanding luxury and wedding wear market. SMC Global gave a two-star rating to the issue.
Grey Market Premium and IPO Details
As of the start of the issue, the grey market premium (GMP) for Purple Style Labs was around ₹30-35 per share, suggesting potential listing gains of approximately 5-6%. The company reserved 75% of the net issue for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. The minimum bid quantity is 26 shares.
The company raised ₹306 crore from 10 anchor investors at ₹575 per share, with participants including BofA Securities Europe, ICICI Prudential MF, and Jupiter India Fund. Proceeds from the issue will be used for investment in wholly owned subsidiary PSL Retail for lease liabilities 13 crore), sales and marketing expenses 90 crore), and general corporate purposes.
Axis Capital and IIFL Capital are the book running lead managers for the IPO, while Kfin Technologies is the registrar. Shares of the company are expected to be listed on both BSE and NSE on Monday, September 7.