Pernia’s Pop-Up Shop Parent Purple Style Labs Closes ₹680 Crore IPO at 1.29x Subscription

Purple Style Labs Limited (PSL), the parent entity of luxury fashion platform Pernia’s Pop-Up Shop, concluded its initial public offering (IPO) with an overall subscription of 1.29 times on the final day of bidding. The ₹680 crore public issue was offered in a price band ranging between ₹546 and ₹575 per share.

Ahead of the public subscription, PSL secured ₹306 crore from 10 marquee anchor investors at the upper price band. The anchor book included institutional participants such as ICICI Prudential Mutual Fund, Morgan Stanley Asia, and Aditya Birla Sun Life Insurance. The company’s cap table also features notable celebrity backers including Shah Rukh Khan, Salman Khan, and Sachin Tendulkar, alongside institutional investors Singularity AMC and Volrado.

PSL originally acquired the Pernia’s Pop-Up Shop brand from founder Pernia Qureshi’s consultancy firm in 2018 for ₹12 crore. Since the acquisition, the company scaled its revenue from ₹45 crore in FY2020 to over ₹500 crore by FY2024. At the upper price band of the IPO, the company is valued at ₹4,603 crore.

Despite the successful subscription closure, brokerage firm Religare Broking assigned a Neutral rating to the IPO in its note. The brokerage highlighted persistent financial challenges, noting that the profit after tax (PAT) loss widened to ₹188.55 crore in FY2025. Additionally, Religare pointed to a negative return on capital employed (ROCE) of 4.79 percent and a rising cash conversion cycle of 123.57 days. The brokerage cautioned that these volatile financials create uncertainty regarding near-term earnings visibility, even as the broader Indian luxury market is projected to expand from ₹1,35,000 crore to ₹2,31,400 crore by FY2030.

"The successful subscription of Purple Style Labs' IPO highlights strong investor appetite for the emerging Indian luxury fashion segment, despite broader concerns around profitability. While marquee anchor backing and celebrity support have aided the capital raise, the widening losses and negative return on capital employed highlighted by analysts indicate that scaling high-end retail requires careful financial management. Moving forward, the company's ability to convert top-line growth into sustainable earnings will be critical as the domestic luxury market continues to expand." — Dr. Shishir Gupta, Founder & CEO, StartupLanes