Purple Style Labs files DRHP to raise Rs 660 Cr via IPO

Purple Style Labs (PSL), the parent company of luxury fashion platform Pernia’s Pop-Up Shop (PPUS), has filed draft papers with SEBI to raise Rs 660 crore through an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), the issue will be entirely a fresh issue of equity shares, with a proposed listing on both the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). The company may also consider a pre-IPO placement of up to Rs 130 crore, in which case the fresh issue size would be reduced accordingly.

Axis Capital and IIFL Capital Services are the book-running lead managers for the issue, while Intime Kfin Technologies will act as registrar.

PSL plans to use Rs 363.3 crore from the net proceeds to invest in its wholly-owned subsidiary, PSL Retail, for lease liabilities related to experience centres and back-end offices in India. Another Rs 128 crore has been earmarked for sales and marketing, while the rest will go towards general corporate purposes.

As per the DRHP, founder Abhishek Agarwal holds 27.1% in the company, while investors including Volrado Venture Partners (2.9%), Abhinav Agarwal (0.25%), and Singularity Growth Opportunities Fund (1.93%) own smaller stakes.

On the financial front, PSL reported a modest decline in operating revenue to Rs 490 crore in FY25, from Rs 504 crore in FY24. However, its losses widened nearly 4X to Rs 188.5 crore during the same period, largely on account of ESOP expenses of Rs 122.7 crore.

Earlier in March, the company raised about $40 million (Rs 332 crore) in a Series E round led by SageOne Flagship Growth OE Fund and Alchemy Long Term Ventures Fund, with participation from celebrities such as Salman Khan and Sachin Tendulkar.