Purple Style Labs, the company behind the luxury fashion destination Pernia’s Pop-Up Shop (PPUS), made its stock market debut on Monday, September 7, with a notable discount. The shares listed on the National Stock Exchange (NSE) at Rs 535 apiece, marking a 6.96 percent drop from its issue price of Rs 575. Similarly, on BSE Ltd., the stock settled at Rs 539, a 6.26 percent discount.
This performance fell below market expectations, particularly given that investors who were allotted a lot of shares faced a loss of nearly Rs 1,000 immediately. Ahead of its listing, the stock had been trading at a discount of Rs 5-10 per share in the grey market, despite initially showing a positive grey market premium in earlier days.
IPO Details and Subscription
The Initial Public Offering (IPO) for Purple Style Labs was open for subscription between August 31 and September 2. The company offered its shares in a price band of Rs 546-575 apiece, with a minimum application lot size of 26 shares. The IPO aimed to raise Rs 680 crore but saw an overall subscription of only 1.29 times, attracting approximately 64,000 applications and bids totaling Rs 510 crore.
- Qualified Institutional Bidders (QIBs): Subscribed 1.43 times.
- Retail Investors: Subscribed 1.57 times.
- Non-Institutional Investors (NIIs): Subscribed 84 percent, falling short of full subscription.
About Purple Style Labs and Its Prominent Backers
Incorporated in August 2015, Purple Style Labs operates as a multi-brand luxury omni-channel fashion platform. Its flagship brand, Pernia’s Pop-Up Shop, curates a diverse portfolio of high-end fashion products, including womenswear, menswear, jewellery, accessories, and kidswear, with a strong emphasis on wedding and occasion wear.
The company boasts a roster of significant celebrity investors, including Bollywood stars Shah Rukh Khan, Salman Khan, and Madhuri Dixit, alongside cricket legend Sachin Tendulkar. These prominent names have undoubtedly added considerable visibility and allure to its luxury fashion venture. Besides these celebrities, well-known figures from Dalal Street, such as Mukul Mahavir Agrawal, Madhusudan Kela, and Akash Bhansali, have also invested in the company.
Brokerage Views and IPO Management
Brokerage firms had offered mixed recommendations regarding the IPO, with some advising subscription while others suggested caution. Axis Capital and IIFL Capital served as the book-running lead managers for the Purple Style Labs IPO, and Kfin Technologies Ltd. was the registrar for the issue.