The Purple Style Labs IPO has entered its third and final day of bidding, with investor participation remaining relatively subdued so far. In the grey market, the IPO is currently commanding a premium of around 1%, indicating expectations of a largely flat listing gain over the issue price.

On the second day of bidding, the issue saw a muted response, with the overall IPO subscribed 24% against the 68.49 lakh shares on offer. The retail investor portion witnessed comparatively stronger demand.

Purple Style Labs, the parent company of luxury fashion platform Pernia’s Pop-Up Shop, has fixed the IPO price band at Rs 546–575 per equity share. The Rs 680-crore public issue comprises entirely a fresh issue of 1.18 crore equity shares.

The IPO allows investors to participate in Purple Style Labs’ next phase of growth as the company seeks to expand its presence in India’s rapidly growing luxury fashion and premium retail market.

The issue has also attracted considerable interest from celebrities. Bollywood stars Shah Rukh Khan and Madhuri Dixit, along with cricket legend Sachin Tendulkar, are among the prominent investors in Purple Style Labs. Other publicly disclosed celebrity investors include Salman Khan and his family, as well as actor Mahesh Babu.

According to the company’s restated consolidated financial statements, Purple Style Labs reported a loss in FY2026. Consequently, its basic and diluted earnings per share (EPS) were negative, making the price-to-earnings (P/E) ratio inapplicable.

The company’s weighted average return on net worth (RoNW) for the last three financial years stood at a negative 147.14%. This suggests that investors may need to assess the IPO on factors beyond conventional earnings-based valuation metrics.

At the upper and lower ends of the price band, the cap and floor prices represent 57.5 times and 54.6 times the face value of the equity shares, respectively. The minimum bid quantity is 26 equity shares, with subsequent bids required to be placed in multiples of 26 shares.

Axis Capital Ltd. is the book-running lead manager for the issue, while Kfin Technologies Ltd. is the registrar to the IPO.

Anchor Investors: Purple Style Labs has raised Rs 306 crore from anchor investors ahead of its IPO. The company allotted 53.21 lakh shares to 10 anchor investors at Rs 575 per share.

Purple Style Labs IPO subscription status

The Purple Style Labs IPO received a muted response from investors on the second day of bidding, with the issue subscribed to 24% of the shares on offer. The IPO has a total of 68.49 lakh shares available for subscription.

The Retail Individual Investors (RIIs) category saw relatively stronger demand, with the segment subscribed to 93% of the 12.45 lakh shares reserved for the category.

The Non-Institutional Investors (NIIs) portion was subscribed to 13%, with bids received for the 18.68 lakh shares offered to the segment.

Meanwhile, the Qualified Institutional Buyers (QIBs) category received bids for 6% of the 37.36 lakh shares reserved for institutional investors.

Purple Style Labs IPO GMP today

The Purple Style Labs IPO Grey Market Premium (GMP) currently stands at around Rs 2, indicating a premium of approximately 1% over the upper price band of Rs 575 per share. Based on the latest GMP, the estimated listing price of the Purple Style Labs IPO is around Rs 577 per share.

GMP Note: The Grey Market Premium (GMP) is an unofficial indicator of market sentiment and does not guarantee the actual listing price of an IPO. GMP can fluctuate significantly before listing, depending on market conditions, investor demand and overall market sentiment.

Purple Style Labs plans to deploy the net proceeds from the IPO across several key areas. The largest allocation of Rs 371.13 crore will be invested in its wholly owned subsidiary, PSL Retail, to meet expenditure related to lease liabilities for Experience Centres and back-end offices across India.

Another Rs 138.90 crore has been earmarked for sales and marketing expenses, which will support the company’s expansion, customer acquisition and brand-building initiatives. The balance of the proceeds will be used for general corporate purposes. Overall, the issue is expected to generate net proceeds of Rs 510.03 crore.

About Purple Style Labs and Pernia’s Pop-Up Studio

Purple Style Labs is the parent company of Pernia’s Pop-Up Shop, a multi-brand luxury fashion omni-channel platform. The company acquired Pernia’s Pop-Up Shop in February 2018, when the business was largely focused on online sales.

Since then, the platform has expanded its physical presence significantly. According to its DRHP, the company had 14 Experience Centres across India and London, with additional locations planned in Mumbai and New York. Its revenue stood at Rs 508 crore in FY24.

The company is increasingly benefiting from its offline expansion. In its DRHP, Purple Style Labs said India’s wedding and occasion-wear market is undergoing a pronounced shift towards premiumisation, with consumers moving towards higher-priced segments between FY25 and FY30.

The company attributed this trend to rising disposable incomes, changing consumer aspirations and increasing willingness to spend on milestone celebrations. It also noted that the growing preference for premium, experience-led weddings is driving demand for luxury and high-quality fashion.

India’s wedding industry has crossed Rs 10 lakh crore, while the wedding-wear market is projected to reach Rs 3.4 lakh crore by FY30. The country’s personal luxury market is also expected to reach Rs 2.31 lakh crore.

Purple Style Labs was founded and is promoted by Abhishek Agarwal, who owns a 27.10% stake in the company. The business has attracted backing from institutional investors, family offices, and private investors. Among its publicly disclosed celebrity investors are Shah Rukh Khan, Salman Khan and his family, Sachin Tendulkar, Madhuri Dixit and Mahesh Babu.

Madhuri Dixit Nene was among the earliest celebrity investors, participating through convertible preference shares. The Gauri Khan Family Trust invested through a rights issue in November 2024, while Sachin Tendulkar participated in a preferential allotment in March 2025. Both investments were made at the price paid by institutional investors in the company’s last private funding round, which closed at a post-money valuation of Rs 3,662 crore.

Purple Style Labs has recorded substantial revenue growth over the past few years. Revenue increased more than 11-fold from Rs 45 crore in FY20 to Rs 508 crore in FY24, representing an approximately 83% compound annual growth rate.

Pernia’s Pop-Up Shop currently offers more than 2 lakh products from over 1,300 designers through its digital platform and 14 Experience Centres. The platform recorded a gross merchandise value (GMV) of more than Rs 588 crore in FY25, while its average order value stood at Rs 56,106.

With its growing physical retail footprint, expanding luxury fashion offering and exposure to India’s rapidly premiumising wedding and occasion-wear market, Purple Style Labs is positioning the IPO as a key source of capital for its next phase of growth.

Should you subscribe?

According to a research report by SBI Securities, Purple Style Labs (PSL), which operates Pernia’s Pop-Up Shop, has established itself as a multi-brand luxury omnichannel fashion platform with a strong focus on Indian wedding and occasion wear.

The company has several positives, including an established luxury fashion platform, a diversified portfolio of designers, an omnichannel presence and improving customer retention. However, its financial performance remains a key concern. PSL recorded a modest 5.2% revenue CAGR between FY24 and FY26, while EBITDA declined and net losses widened during the same period.

Profit margins also contracted in FY26, primarily due to a higher proportion of liquidation inventory and the increase in GST on apparel priced above Rs 2,500 per piece, from 12% to 18%. Going forward, a meaningful improvement in profitability will depend largely on the ability of its experience centres to mature and absorb the company’s higher fixed-cost base.

At the upper price band of Rs 575 per share, PSL is valued at a post-issue FY26 EV/Sales multiple of 7.7x. While the IPO proceeds are expected to help fund lease payments and marketing expenditure, SBI Securities believes that visibility on sustainable profitability remains limited at present.

Given the elevated valuation and the company’s continued losses, SBI Securities has assigned a ‘Neutral’ rating to the IPO. The brokerage recommends tracking PSL’s performance for a few quarters after listing before taking a more constructive view on the stock.