SRK, Madhuri Dixit-backed Purple Style Labs makes weak D-Street debut. Should you buy?

Shares of Purple Style Labs, the parent company of luxury fashion omnichannel platform Pernia's Pop-Up Shop, made a muted market debut on Monday, listing at a 7% discount over IPO price, with analysts continuing to advise caution.

Purple Style Labs shares listed at Rs 535 apiece on NSE, marking a discount of nearly 7% over the IPO price of Rs 575 apiece. The listing was broadly in line with grey market expectations, as the unlisted shares were trading with a negative grey market premium ahead of listing.

The weak market comes after the Rs 680-crore initial public offering (IPO) of the company got fully subscribed during its three days of public bidding between August 31 and September 2. The IPO entirely comprised a fresh issue of shares at a price band of Rs 546.575 apiece.


Ahead of the IPO, Purple Style Labs raised Rs 306 crore from anchor investors. The company allotted 53.21 lakh shares to 10 anchor investors at the upper end of the price band, or Rs 575 per share.

Purple Style Labs acquired Pernia’s Pop-Up Shop in February 2018, when it was primarily an online-only platform. The business has since expanded into physical retail, reporting Rs 508 crore in revenue in FY24. According to the DRHP, it currently operates 14 Experience Centres across India and London, with plans to expand further in Mumbai and New York.

Celebrities backing Purple Style Labs

Promoted by Abhishek Agarwal, who holds a 27.10% stake in the company, Purple Style Labs is backed by institutional investors, family offices and private investors. Its publicly disclosed celebrity investors include Shah Rukh Khan, Salman Khan and his family, Sachin Tendulkar, Madhuri Dixit and Mahesh Babu.

Madhuri Dixit Nene came in earliest among the celebrity investors, through convertible preference shares. The Gauri Khan Family Trust subscribed in a rights issue in November 2024 and Tendulkar in a preferential allotment in March 2025, both at the price institutional funds were paying in the last private round, which closed at a post-money valuation of Rs 3,662 crore.

How will the IPO proceeds be used?

Purple Style Labs plans to use the IPO proceeds to invest in its wholly-owned subsidiary, PSL Retail, towards lease liabilities for experience centres and back-end offices in India. A portion will be deployed towards sales and marketing, while the remaining proceeds will be used for general corporate purposes.

On the financial front, the company reported more than an 11-fold rise in revenue, from Rs 45 crore in FY20 to Rs 508 crore in FY24, translating into an approximately 83 per cent compound annual growth rate. Pernia's Pop-Up Shop currently offers more than 2 lakh products from over 1,300 designers through its digital platform and 14 experience centres. The platform recorded a gross merchandise value (GMV) of more than Rs 588 crore in FY25, with an average order value of Rs 56,106.

Also read | Purple Style Labs shares list at 7% discount to IPO price on NSE

Should you buy, sell or hold Purple Style Labs shares?

Purple Style Labs made a weak debut, listing at a discount of 7% over IPO price at Rs 535 on NSE. Shivani Nyati, Head of Wealth at Swastika Investmart, said their view remains ‘Avoid’, as the company’s loss has widened sharply from Rs 47.7 crore in FY24 to Rs 188.4 crore in FY25 and Rs 285.4 crore in FY26, with no clear path to breakeven.

“Valuation also looks expensive at around 9.3–9.6x FY26 revenue, while P/E and P/B are not meaningful due to losses and negative net worth. Moreover, around 55% of IPO proceeds will be used for lease liabilities and Rs 138.9 crore for marketing, leaving limited funds for growth,” the analyst said.

For existing investors, Shivani Nyati suggests keeping a stop loss at Rs 500. Overall, widening losses, negative net worth and high valuation make the risk-reward unattractive at current levels, she concluded.

“The weak listing could keep near term sentiment under pressure. Fresh investments from investors might wait for price stability. The outlook will depend on the Company’s ability to sustain growth, improve profitability and cash generation,” said Ravi Singh, Chief Research Officer at Master Capital Services.

Also read | What Shah Rukh Khan, Madhuri Dixit and Sachin Tendulkar see in Purple Style Labs IPO? Here’s what DRHP reveals

Disclosure: "This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment."