shares witnessed a weak start on Monday, listing at a discount of over 6 per cent to the price of ₹575, before rising above the offer price at the time of writing.
On the NSE, the stock debuted at ₹535, a discount of 6.9 per cent to the IPO price. On the BSE, it listed at ₹539, down 6.2 per cent.
However, the shares later zoomed to ₹588.90 on the NSE and ₹588.10 on the BSE, trading higher than the offer price.
The listing ceremony of Purple Style Labs Limited will be starting soon at our exchange . Watch the ceremony live!
— NSE India (@NSEIndia)
According to Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, Purple Style Labs remains an “avoid” despite the stock recovering above its IPO price after a weak listing. Nyati cited widening PAT losses, which increased from ₹47.7 crore in FY24 to ₹188.4 crore in FY25 and ₹285.4 crore in FY26, along with negative net worth and no clear path to breakeven. She also flagged the valuation of around 9.3–9.6 times FY26 revenue and said the use of a significant portion of IPO proceeds towards lease liabilities and ₹138.9 crore for marketing leaves limited funds for growth.
For existing investors, Nyati suggested a stop loss at ₹500, describing the risk-reward as unattractive at current levels.
IPO subscription
The initial public offering of Purple Style Labs Ltd, the parent company of Pernia’s Pop-Up Shop, received 1.29 times subscription overall.
The retail investors’ portion was subscribed 1.58 times, while the qualified institutional buyers’ category received 1.43 times subscription. The quota for non-institutional investors was subscribed 84 per cent.
The company had raised ₹306 crore from anchor investors.
The public offer comprised entirely a fresh issue of equity shares aggregating up to ₹680 crore, with no offer-for-sale component. The price band was fixed at ₹546-575 per share.
At the upper end of the price band, the issue valued Purple Style Labs at a market capitalisation of over ₹4,600 crore.
The company plans to use ₹371.13 crore of the IPO proceeds for investment in its wholly owned subsidiary PSL Retail towards lease liabilities of experience centres and back-end offices in India. It will use ₹138.90 crore for sales and marketing expenses, while the remaining proceeds will go towards general corporate purposes.
Promoted by Abhishek Agarwal, Purple Style Labs operates a multi-brand luxury fashion omni-channel platform. Its publicly disclosed celebrity investors include Shah Rukh Khan, Salman Khan and his family, Sachin Tendulkar, Madhuri Dixit, and Mahesh Babu.