Pernia's Pop-Up Shop IPO now open: Should you subscribe?
What's the story
Purple Style Labs, the parent company of luxury fashion platform Pernia's Pop-Up Shop, has launched its initial public offering (IPO) today. The company has set the price band for its shares between ₹546 and ₹575. The IPO is entirely a fresh issue of 1.18 crore equity shares and is worth ₹680 crore in total.
Market performance
Issue details and gray market performance
The Purple Style Labs IPO will be open for subscription from today until September 2.
In the gray market, the issue is trading at a premium of about 5%. This suggests a positive but muted listing gain over its issue price.
The company intends to use the net proceeds from the IPO for lease liabilities, sales and marketing expenses, and general corporate purposes.
Investor interest
Celebrity investors and financial performance
Bollywood stars Shah Rukh Khan and Madhuri Dixit, as well as cricket legend Sachin Tendulkar, are among the celebrity investors in Purple Style Labs.
The company's restated consolidated financial statements show a loss in FY2026 with negative basic and diluted earnings per share (EPS).
This makes the price-to-earnings (P/E) ratio irrelevant for potential investors considering this IPO opportunity.
Growth strategy
Use of proceeds from the IPO
Purple Style Labs has a strong presence in the luxury fashion segment with its subsidiary, PSL Retail.
The company plans to invest ₹371.13 crore of the IPO proceeds in this subsidiary for lease liabilities across India.
Another ₹138.90 crore will go toward sales and marketing expenses to support expansion, customer acquisition, and brand-building initiatives.
The remaining funds will be used for general corporate purposes.
Financial performance
Revenue growth and premiumization trend
Purple Style Labs has witnessed significant revenue growth over the years, with an 83% compound annual growth rate from ₹45 crore in FY20 to ₹508 crore in FY24.
The company also benefits from India's premiumization trend in the wedding and occasion-wear market, which is shifting toward higher-priced segments due to rising disposable incomes and changing consumer aspirations.
Market outlook
Valuation and brokerage rating
At the upper price band of ₹575 per share, Purple Style Labs is valued at a post-issue FY26 EV/Sales multiple of 7.7x.
SBI Securities has assigned a 'Neutral' rating to the IPO due to its elevated valuation and continued losses.
The brokerage suggests monitoring PSL's performance for a few quarters after listing before forming a more constructive view on the stock.