Mumbai: Purple Style Labs Limited has approved a Rs 420 crore investment in its wholly owned subsidiary, PSL Retail Private Limited, using part of the proceeds from its public offering.
The board cleared the proposal on September 15. The investment will be executed through a rights issue and aligns with the IPO objectives disclosed in the company’s prospectus dated September 2, 2026.
Rights Issue Details
Purple Style Labs will acquire 42 crore equity shares of PSL Retail, each carrying a face value of Rs 10, at an issue price of Rs 10 per share. The total cash consideration will amount to Rs 420 crore.
The acquisition is scheduled for completion between September 19 and September 25, following the subsidiary’s rights issue offer letter dated September 15.
Purple Style Labs owns 100 percent of PSL Retail and will retain the same level of ownership after the investment. No approval is required for the transaction.
Funds Target Lease Costs
The subsidiary will deploy the proceeds towards lease liabilities relating to its experience centres and back-end offices. A portion may also be used for general corporate purposes of Purple Style Labs and its subsidiaries.
PSL Retail operates Pernia’s Pop-Up Shop, a luxury omnichannel fashion platform selling womenswear, menswear, jewellery, accessories and childrenswear through physical experience centres and an online platform.
The subsidiary reported revenue from operations of Rs 555.74 crore for the financial year ended March 31, 2026. Its paid-up share capital stood at Rs 280.01 crore on the disclosure date.
Related-Party Transaction
As PSL Retail is a wholly owned and material subsidiary, the investment qualifies as a related-party transaction. Purple Style Labs said it is being conducted on an arm’s-length basis and is consistent with the stated IPO objectives.
Promoter, whole-time director and chief executive Abhishek Agarwal also serves on PSL Retail’s board. Promoter-group members Priyanka Agarwal and Payal Agarwal are shareholders in Purple Style Labs, while the company disclosed no other promoter-group interest in the transaction.
Disclaimer: This article is based on information disclosed by Purple Style Labs in its exchange filing and is for informational purposes.
