Purple Style Labs shares make a flop D-st debut; celebrity-back stock lists at 7% discount

Shares of Purple Style Labs made a disappointing stock market debut on Monday, September 07 the parent company of luxury fashion store under Pernia’s Pop-Up Shop (PPUS) brand was listed at Rs 535 apeice on NSE, a discount of 6.96 per cent over issue price of Rs 575. Similarly, the stock settled at a discount of 6.26 per cent over the given issue price at Rs 539 on BSE Ltd.

As of the listing price, investors made a loss of nearly Rs 1,000 on each lot allotted to them. Listing of Purple Style Labs has been below the expectations as the stock was commanding a discount of Rs 5-10 apeice in the grey market ahead of its debut. However, it was commanding a positive grey market premium (GMP) during the early days.

To recall, the IPO of Purple Style Labs was sold in the price band of Rs 546-575 apiece between August 31 and September 02. The company sold the issue with a lot size or 26 equity shares and its multiples thereafter. It raised a total of Rs 680 crore via IPO, with issue being overall subscription of only 1.29 times, fetching only 64,000 applications and bids just Rs 510 crore.

On an individual basis, the portion reserved for qualified institutional bidders (QIBs) saw a subscription of 1.43 times, while the portion for retail investors was subscribed 1.57 times. The allocation for non-institutional investors (NIIs) was subscribed only 84 per cent during the three-day subscription period.

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.

Purple Style Labs has notable celebrity investors, including Shah Rukh Khan, Salmaan Khan, Madhuri Dixit and Sachin Tendulkar, adding significant visibility to its luxury fashion business. Besides them, marquee names of Dalal Street like Mukul Mahavir Agrawal, Madhusudan Kela, Akash Bhansali and others have also invested in the company.

Brokerage firms had mixed views on the issue, with some suggesting subscribing to it while others suggesting to avoid it. Axis Capital and IIFL Capital were the book running lead managers for the Purple Style Labs IPO, while Kfin Technologies Ltd served as the registrar of the issue.