A legal dispute has emerged around Purple Style Labs' (PSL) Rs 680-crore Initial Public Offering (IPO) as fashion entrepreneur Pernia Qureshi and Pernia Qureshi Consultancy have sent a legal notice to the company and its lead book-running manager, Axis Capital.
Dispute Over 'Pernia' Brand Rights
The core of the legal challenge revolves around the description of PSL's rights to the 'Pernia' name in an investor communication dated August 26. The original communication stated that Purple Style Labs had acquired "perpetual, sole, exclusive and worldwide" rights to 'Pernia's', 'Pernia's', 'Pop-Up Shop', 'PPUS', and their derivatives following a 2018 business acquisition.
Pernia Qureshi has disputed this broad claim, asserting that the licensing agreement was specifically limited to the 'Pernia's Pop-Up Shop' brand. She argues that the agreement did not grant Purple Style Labs the right to use 'Pernia' or 'Pernia's' independently as standalone names.
Axis Capital Revises Investor Note
Following the legal notice, which also raised concerns about due diligence, Axis Capital issued a revised version of its IPO note. The updated communication provided a narrower description of the rights, clarifying that Purple Style Labs can use 'Pernia' on a perpetual, sole, exclusive, and worldwide basis only in direct connection with 'perniaspopupshop', 'Pernia's Pop Up Shop', 'PPUS', and related derivatives.
Purple Style Labs, in response to the allegations, stated, "As per the agreements and the licence arrangement, Purple Style Labs does not use 'Pernia' or 'Pernia's' as a standalone name." The company has rejected suggestions that it has used the name beyond the agreed scope.
Previous Disclosures in Red Herring Prospectus
This dispute is not entirely new for Purple Style Labs. The company had previously disclosed the issue as a risk factor in its Red Herring Prospectus (RHP).
Intellectual Property Acquisition Details
- PSL acquired ownership rights related to Pernia's Pop-Up Shop intellectual property through an asset purchase agreement and a license agreement signed with Pernia Qureshi Consultancy in February 2018.
- The RHP specified that these agreements granted PSL the right to use 'Pernia's' only as part of 'perniaspopupshop', 'Pernia's Pop Up Shop', and 'PPUS', along with their derivatives.
Furthermore, the RHP revealed that Purple Style Labs received a notice from Pernia Qureshi and the seller in January 2026, seeking termination of the license agreement due to alleged breaches. Purple Style Labs has denied these allegations, maintaining that the license is non-terminable under its terms and that it had acquired the relevant intellectual property rights through the asset purchase agreement. The resurfacing of this dispute coincides with the opening of the company's public issue for subscription.