Purple Style Labs Shares Make Weak Debut, List at Up to 7% Discount to IPO Price

Shares of Purple Style Labs made a weak debut on Dalal Street on Monday, listing at a discount of up to around 7 per cent to their issue price of Rs 575 per share. The shares listed at Rs 539 on the BSE, a decrease of 6.26 per cent against the issue price, while on the other exchange the National Stock Exchange debuted at Rs 535, down 6.96 per cent. However, later in trading session, the stock declined as much as 10.26 per cent or Rs 59 per share to hit an intraday low of Rs 516 on the BSE in early deals. On the NSE, the stock recorded an intraday low of Rs 515.85, a decrease of 10.28 per cent or Rs 59.15 per share.

The weak debut comes against the backdrop of widening losses and a sharp increase in borrowings at the luxury fashion company. According to the company's red herring prospectus, Purple Style Labs reported a consolidated loss of Rs 285.40 crore in fiscal 2026, compared with a loss of Rs 188.38 crore in fiscal 2025 and Rs 47.71 crore in fiscal 2024. Its total borrowings rose to Rs 371.40 crore as of March 31, 2026 from Rs 112.79 crore a year earlier and Rs 116.33 crore in fiscal 2024.

Moreover, total income increased to Rs 567.07 crore in fiscal 2026 from Rs 494 crore in the previous year, while EBITDA declined to Rs 30.37 crore from Rs 41.99 crore. Apart from earnings, the company also faces concentration risks with womenswear accounting for 77.7 per cent of total gross merchandise value at Pernia's Pop-Up Shop in fiscal 2026, as per the IPO document. A shift in customer preferences, weaker demand or an inability to anticipate fashion trends could materially affect sales and profitability, the RHP said. In addition, Purple Style Labs has also received 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, according to the prospectus.

The company's expansion into new stores, international markets and premium brands carries execution risks, while designer brands determine product prices and several agreements are non-exclusive which could limit the company's pricing flexibility and allow designers to sell through competing platforms or directly, the company said in the RHP. The Rs 680-crore IPO was open for subscription from August 31 to September 2 with a price band of Rs 546-575 per share.

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