SRK, Salman-backed Purple Style Labs IPO opens: Should you apply or avoid? Price band, GMP, reviews

The initial public offering of Purple Style Labs (PSL), which operates Pernia’s Pop-Up Shop (PPUS) in India, opens for subscription on Monday, August 31.  Brokerage firms tracking the issue have a mixed view on it despite having a differentiated luxury fashion platform as modest revenue growth, mounting losses, widening losses and margin pressure remain key concerns.

Purple Style Labs is selling its shares in the range of Rs 546-575 apiece, a lot size of 26 equity shares and multiples thereafter, to raise a total of Rs 680 crore, which is entirely a fresh share sale of 1,18,26,086 equity shares. The issue closes for bidding on Wednesday, September 02.

PSL runs a luxury omnichannel fashion platform focused on Indian wedding and occasion wear. Its strengths like a diversified designer portfolio, omnichannel presence and improving customer retention. Revenue growth remained modest, while EBITDA declined and losses widened through FY26. Margins also contracted due to a higher mix of liquidation inventory and GST-related changes, SBI Securities said.

"Any improvement in profitability will depend on the maturity of experience centres to absorb the higher proportion of fixed costs. While the issue proceeds are expected to support lease payments and marketing expenditure, visibility on sustainable profitability remains limited at present. Hence, we assign a 'neutral' rating to the issue and would like to track its performance post-listing," it added.

Incorporated in August 2015, Purple Style Labs is a multi-brand luxury omni-channel fashion platform operating under Pernia’s Pop-Up Shop (PPUS), offering a curated portfolio of luxury fashion products across womenswear, menswear, jewellery, accessories and kidswear, with a focus on wedding and occasion wear.

PSL has established a differentiated position in the Indian luxury fashion industry through its Pernia’s Pop-Up Shop (PPUS) brand, supported by a curated portfolio of 1,109 active designer brands and an Omni-channel presence spanning Experience Centers, online platforms and other digital channels. It is valued at P/S of 8.3x based on FY26 earnings, said Anand Rathi Research.

It’s integrated online and offline model enables it to serve customers across domestic and international markets, while its growing physical Experience Center network strengthens customer engagement and provides an immersive luxury shopping experience. Its profitability and execution remain key monitorable factors. The IPO is fully priced," it said with a 'subscribe for long-term' rating.

Purple Style Labs operates in the premium luxury fashion segment, elevated operating costs, negative earnings and declining EBITDA margins limit near-term profitability and valuation visibility, said BP Equities. "Given the demanding P/S multiple and competitive intensity in the premium luxury fashion market, we assign an 'avoid' rating to the issue," it added.

PSL has reserved 75 per cent of the net issue for qualified institutional bidders (QIBs), while non-institutional and retail investors will get 15 per cent and 10 per cent allocation, respectively. The proceeds from the IPO shall be used towards investment in wholly owned Subsidiary, PSL Retail, funding towards sales and market expenses and general corporate purposes.

Ahead of its IPO, Purple Style Labs raised Rs 306 crore from 10 anchor investors as it allocation 53,21,739 equity shares at Rs 575 apeice. Its anchor book included names like BofA Securities Europe, ICICI Prudential MF, Jupiter India Fund, Aditya Birla Sun Life Insurance, ITI Mutual Fund, Singularity Equity Fund, Morgan Stanley Asia, Integrated Core Strategies (Asia) and others.

Valuation at 7.7 times FY26 EV/Sales appears demanding given limited profitability visibility despite the attractive market, FY24–26 revenue CAGR was only 5.2 per cent, while EBITDA declined and losses widened due to margin pressure and higher fixed costs, said KC Securities with a 'neutral' view on the issue.

PSL is positioned to benefit from the expanding luxury/wedding wear markets through its omnichannel platform. Its focus on premium wedding & occasion wear, personalized shopping experience and growing international presence positions it to capitalize on the increasing demand for Indian luxury fashion, said Master Capital Services with a 'subscribe' for long-term rating.

PSL operates in an attractive luxury and designer-wear market with strong premiumization potential. However, the investment case remains high-risk because FY26 loss reached Rs 285.40 crore, higher finance costs and lease costs are rising sharply. Sustainable profitability, store productivity and cash-flow improvement remain critical," said SMC Global, giving a two-star rating to the issue.

Purple Style Lab's net loss widened to Rs 285.40 crore in FY26 from a net loss of Rs 188.38 crore in FY26. However, its total income increased 15 per cent YoY to Rs 567.07 crore from Rs 494 crore during the period under review. Its RoE and RoCE remained negative for the period ended on March 31, 2026. At current valuations, it commands a market capitalization close to Rs 4,640 crore.

Last Heard, Purple Style Labs' grey market premium (GMP) of Rs 30-35 apiece, suggesting nearly 5-6 per cent gains for the investors. Axis Capital and IIFL Capital are the book running lead managers for the Purple Style Labs IPO, while Kfin Technologies is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on Monday, September 07.