Purple Style Labs Files DRHP For INR 660 Cr IPO

Premium house of brands company Purple Style Labs has filed its draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO) that will solely consist of a fresh issue of equity shares.

The company is looking to raise up to INR 660 Cr through its fresh issue of equity shares. No offer for sale (OFS) component has been outlined yet. It may also undertake a pre-IPO placement of shares worth up to INR 130 Cr; any amount raised under this route will reduce the fresh issue size accordingly.

Important to mention that the company’s board approved the proposal to undertake an IPO comprising a fresh issue of equity shares aggregating up to INR 750 Cr on August 28.

Of the net proceeds, the largest chunk—INR 363.3 Cr—will go towards expanding lease liabilities for new and existing experience centers as well as expanding its backend offices across India. Further, it plans to utilise INR 128 Cr for sales and marketing initiatives.

Notably, leased properties continue to be one of the major expenses for the company. For instance, earlier this year, the company rented out the historic Ismail building in Mumbai, which was earlier used by the likes of Zara. It pays about INR 10 Lakh daily in rent.

Founded in 2015 by Abhishek Agarwal, Purple Style Labs is an omnichannel luxury fashion house that counts Indian designer brands like Pernia’s Pop Up Studio & Shop, Wendell Rodricks, Hemant Trevedi in its portfolio.

The company had raised a private equity funding of about $78 Mn till date from investors like Harish Shah Family Office, Masaba Gupta, among others. Notably, promoter and CEO Agarwal holds about 27% stake pre-issue. Promoter Group members Payal Kumari Agarwal and Priyanka Agarwal collectively own less than 1%.

It houses offerings from top designers like Seema Gujral, Anushree Reddy, Amit Aggarwal, and Rohit Gandhi Rahul Khanna, spanning the wedding, occasion wear, menswear, and accessory categories.

On the financial front, Purple Style Labs reported a net loss of INR 188.6 Cr in the fiscal year FY24, marking a whopping 4X jump from INR 47.7 Cr loss incurred in the previous fiscal. Meanwhile, its operating revenue for the fiscal declined 3% to IINR 489.9 Cr, which slightly declined from INR 504.3 Cr in revenue for FY24.

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