Purple Style Labs’ Rs 680-crore IPO opens amid widening losses, rising borrowings and heavy dependence on womenswear, raising key concerns for investors.
The initial public offering (IPO) of fashion platform Purple Style Labs which opened for subscription on Monday with the company's continued losses, rising borrowings and concentration of business in womenswear emerging as key risk factors for investors. According to the company's red herring prospectus, Purple Style Labs reported a consolidated loss of Rs 285.40 crore in 2025-26, widening from Rs 188.38 crore in the previous year and Rs 47.71 crore in 2023-24.
The company's total borrowings also increased sharply to Rs 371.40 crore as of March 31, 2026 from Rs 112.79 crore a year earlier and Rs 116.33 crore in FY24. In addition, total income rose to Rs 567.07 crore in FY26 from Rs 494 crore in FY25, while EBITDA declined to Rs 30.37 crore from Rs 41.99 crore. Apart from that, a major business risk is the company's dependence on womenswear, which accounted for 77.7 per cent of total Pernia's Pop-Up Shop GMV in FY26. A change in customer preferences, weaker demand or the company's inability to anticipate fashion trends could materially affect sales and profitability, according to the RHP.
The company also faces intellectual property-related risks after receiving a notice from Pernia Qureshi and the seller seeking termination of a licence agreement covering certain rights associated with the Pernia's Pop-Up Shop brand. Its expansion into new stores, international markets and premium brands also carries execution risks. Further, designer brands determine product prices and several agreements are non-exclusive, limiting the company's pricing flexibility and allowing designers to sell through competing platforms or directly.
The Rs 680-crore IPO which is entirely a fresh issue of 1.18 crore shares will remain open until September 2. The price band has been fixed at Rs 546-575 per share. Additionally, shares are proposed to be listed on NSE and BSE with the tentative listing date set for September 7.
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