Purple Style Labs Makes Weak Market Debut, Shares Slide Nearly 7% In Early Trade

New Delhi: Shares of Purple Style Labs Ltd, the parent company of luxury fashion platform Pernia's Pop-Up Shop, made a weak stock market debut on Monday, listing at a discount of nearly 7% to the IPO issue price.

On the BSE, Purple Style Labs shares opened at Rs 539, a discount of 6.26% compared with the issue price of Rs 575.

The stock listed at Rs 535 on the NSE, representing a steeper discount of 6.95% to the issue price. Following the listing, the company's market capitalisation stood at around Rs 4,545.47 crore.

Purple Style Labs IPO Subscribed 1.29 Times

The Purple Style Labs IPO received a relatively muted response from investors, with the public issue subscribed 1.29 times by the end of the final bidding day.

The company had fixed a price band of Rs 546-575 per share for its Rs 680-crore initial public offering.

The IPO was entirely a fresh issue of equity shares, meaning there was no offer-for-sale component and the proceeds will go to the company.

Where Will IPO Money Be Used?

Purple Style Labs plans to deploy Rs 371.13 crore from the IPO proceeds in its wholly-owned subsidiary PSL Retail.

The funds will primarily be used towards lease liabilities for experience centres and back-end offices across India.

Another Rs 138.90 crore has been earmarked for sales and marketing expenditure, while the remaining funds will be used for general corporate purposes.

Over 1,300 Designers on Platform

Promoted by Abhishek Agarwal, Purple Style Labs operates a multi-brand luxury fashion omnichannel platform.

Its publicly disclosed celebrity investors include Shah Rukh Khan, Salman Khan and his family, Sachin Tendulkar, Madhuri Dixit and Mahesh Babu.

The company currently offers more than 2 lakh products from over 1,300 designers through its online platform and 14 physical experience centres.