Purple Style Labs approved a $7 million investment in its wholly owned subsidiary, Purple Style Labs USA, Inc. (PSL USA), during a board meeting held on September 21, 2026. The company will acquire 7 million Class B Common Stock shares at a par value of $1 each.

The transaction is classified as a related-party transaction under Section 2(76) of the Companies Act, 2013. The board confirmed the deal was conducted on an arm's length basis and aligns with the objects of the Initial Public Offer (IPO).

Investment Details

The primary funding source for this acquisition is the net proceeds from the company's recent IPO. Specifically, up to ₹530 million of the net proceeds will be utilized for this purpose. PSL USA will deploy these funds for general corporate purposes, consistent with the disclosures made in the prospectus filed with the Registrar of Companies, Mumbai I, on September 2, 2026.

Subsidiary Profile

PSL USA, incorporated in Delaware on April 16, 2025, operates retail businesses including womenswear, menswear, jewelry, accessories, and kidswear through a physical experience centre in New York City under the trade name Pernia's Pop-Up Studio.

For the period from April 16, 2025, to March 31, 2026, PSL USA reported a turnover of INR 11.58 million. As the entity was incorporated less than three years ago, historical turnover data for previous periods is not available.

Regulatory Approvals

The acquisition requires relevant permission from an authorized dealer bank under the Foreign Exchange Management (Overseas Investment) Rules, 2022. The company expects to complete the acquisition within 30 days of receiving this approval.

Mr. Abhishek Agarwal, Whole-time Director and CEO of Purple Style Labs, also serves as President, Secretary, and Treasurer of PSL USA. His immediate relatives, Ms. Priyanka Agarwal and Ms. Payal Agarwal, are shareholders in the parent company but have no direct interest in the transaction beyond their shareholding.

Purple Style Labs has approved an investment of ₹420 crore in its wholly owned subsidiary PSL Retail Private Ltd through a rights issue, with proceeds designated for lease liabilities and general corporate purposes.

Investment details

The Board of Directors approved the transaction at a meeting held on September 15, 2026. The investment involves the acquisition of 42 crore equity shares with a face value of ₹10 each at an issue price of ₹10 each. The transaction is classified as a related party transaction under Section 2(76) of the Companies Act, 2013, but is stated to be conducted at arm's length.

The rights issue route allows Purple Style Labs to infuse capital into PSL Retail Private Ltd in a structured manner. The allocation toward lease liabilities indicates the funds will support the subsidiary's operational and occupancy obligations for its experience centers and back-end offices in India, while the general corporate needs component provides flexibility for broader business requirements.

Subsidiary financial profile

PSL Retail Private Ltd operates the luxury omnichannel fashion platform Pernia's Pop-Up Shop. It was incorporated on August 29, 2019. The subsidiary reported revenue from operations of ₹5,557.38 million for the financial year ended March 31, 2026. Its paid-up share capital as on the date of disclosure stands at ₹28.00 crore.

The investment utilizes part of the net proceeds received from the fresh issue of equity shares pursuant to the company's Initial Public Offering. Promoter Abhishek Agarwal serves as a director on the board of PSL Retail, while his immediate relatives Priyanka Agarwal and Payal Agarwal are shareholders in Purple Style Labs.