Purple Style Labs Files Rs 660 Crore IPO Amid Financial Challenges
Purple Style Labs, a luxury fashion platform, has filed preliminary papers with SEBI for an IPO to raise Rs 660 crore through fresh share issuance. The company plans to list on both NSE and BSE. Funds will be used for subsidiary investment, sales and marketing, and general corporate purposes. Despite revenue decline and increased losses in recent fiscal years, the company operates Pernia's Pop-Up Shop with 1,312 active designer brands across multiple channels.
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Purple Style Labs, a luxury fashion platform, has taken a significant step towards going public by filing preliminary papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company aims to raise Rs 660 crore through fresh share issuance, with plans to list on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
IPO Details
- Offering Size: Rs 660 crore through fresh share issuance
- Listing: NSE and BSE
- Book-Running Lead Managers: Axis Capital and IIFL Capital
- Pre-IPO Placement: Considering up to Rs 130 crore
Fund Utilization
The company has outlined specific plans for the IPO proceeds:
- Rs 363.29 crore: Investment in subsidiary PSL Retail for lease liabilities of experience centers and back-end offices
- Rs 128 crore: Sales and marketing expenses
- Remaining: General corporate purposes
Company Overview
Purple Style Labs operates Pernia's Pop-Up Shop, a multi-brand luxury omni-channel platform. The company's business model includes:
- 1,312 active designer brands
- Experience centers
- Online platforms
- Events
Financial Performance
Despite its upcoming IPO, Purple Style Labs has faced some financial challenges:
| Metric | Fiscal 2025 | Fiscal 2024 | Change |
|---|---|---|---|
| Revenue from Operations | Rs 489.91 crore | Rs 504.37 crore | -2.90% |
| Net Loss | Rs 188.55 crore | Rs 47.71 crore | 295.20% |
The company experienced a decline in revenue and a significant increase in net loss year-over-year.
Market Impact
The luxury fashion industry in India has been growing, and Purple Style Labs' IPO could be seen as a test of investor appetite for this sector. However, the company's recent financial performance may raise questions among potential investors about its growth trajectory and path to profitability.
As the IPO process unfolds, market observers will be closely watching how Purple Style Labs addresses its financial challenges and positions itself for future growth in the competitive luxury fashion market.
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