🚫 Avoid
Listed
E-Retail/ E-Commerce
Purple Style Labs Limited IPO
₹680 Cr · Fresh Issue · E-Retail/ E-Commerce
Price Band
₹546 – ₹575
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹680 Cr
Fresh Issue
Market Cap
₹4639.63 Cr
At upper band
P/E Ratio
16.3x
P/S: 8.3x
Listing Date
07 Sep 2026
BSE & NSE
IPO Timeline
✓
Opens
31 Aug 2026
✓
Closes
02 Sep 2026
✓
Allotment
3 Sep 2026
✓
Refund
4 Sep 2026
✓
Listing
07 Sep 2026
IPO India Hub: Strong Avoid
Conviction
2/10
The company is loss-making with a ₹285.4 Cr net loss in FY0, and promoters are exiting entirely (26.34% → 0% post-issue), signaling weak confidence. Subscription at 0.12x indicates severe investor rejection, and the 5.4% revenue CAGR with negative ROCE (-4.75%) shows the business is not generating value.
Listing Performance
Issue Price
₹575
Allotment price
Listing Price
₹539
-6.26% on listing day
Current Price (CMP)
₹570.15
-0.8% vs issue
Listed On
07 Sep 2026
BSE & NSE
Our Analysis — Key Points
⚠ Risk
Severe Loss-Making Status
The company reported a ₹285.4 Cr net loss in FY0 against ₹557.84 Cr revenue, resulting in a negative net profit margin of -51.2%. This is a fundamental disqualifier for IPO investment under any valuation framework.
⚠ Risk
Complete Promoter Exit Post-Issue
Promoter holding collapses from 26.34% pre-issue to 0% post-issue, indicating the founder is divesting entirely rather than investing alongside public shareholders. This is a critical red flag for governance and long-term commitment.
⚠ Risk
Negative Return on Capital
ROCE of -4.75% demonstrates the company is destroying shareholder capital, not creating it. Combined with a 5.4% revenue CAGR over two years, growth is stalling while losses persist.
⚠ Risk
Catastrophic Market Reception
Overall subscription of 0.12x (12% of issue subscribed) is one of the lowest rejection signals possible for a Mainboard IPO. This reflects institutional and retail investor consensus that the valuation and business model are not credible.
₹ Valuation
Valuation Metrics Misleading on Loss
The reported P/E of 16.3x is mathematically invalid because the company is loss-making; P/E ratios cannot be meaningfully applied to unprofitable firms. The P/S of 8.3x is elevated for e-retail, which typically trades at 2–5x sales, and offers no margin of safety.
👁 Watch
Post-Listing Cash Burn Rate
Monitor quarterly cash burn and runway post-listing. With ₹680 Cr raised but ₹371 Cr earmarked for subsidiary lease liabilities and ₹139 Cr for marketing, the company must demonstrate a clear path to profitability or face a severe delisting risk within 18–24 months.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Purple Style Labs Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹557.84 Cr
Net Profit
₹-285.40 Cr
Industry
E-Retail/ E-Commerce
Issue Type
Fresh Issue
Promoters
ABHISHEK AGARWAL
Lead Managers
Axis Capital and IIFL Capital
Quick Actions
Frequently Asked Questions
Avoid. The company is loss-making with a ₹285.4 Cr net loss in FY0, and promoters are exiting entirely (26.34% → 0% post-issue), signaling weak confidence. Subscription at 0.12x indicates severe investor rejection, and the 5.4% revenue CAGR with negative ROCE (-4.75%) shows the business is not generating value.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
Lot size details will be updated when the DRHP is filed. The price band is ₹546 – ₹575.
The IPO opens on 31 Aug 2026. It closes on 02 Sep 2026. Allotment is expected on 3 Sep 2026. Refunds initiate on 4 Sep 2026. Listing on BSE and NSE is on 07 Sep 2026.
The lead managers for the IPO are Axis Capital and IIFL Capital. Check the SEBI filing for the registrar details.
The IPO listed on 07 Sep 2026 at ₹539 against an issue price of ₹575 (-6.26% on listing day). The current market price (CMP) is approximately ₹570.15 (-0.8% vs issue).
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 02 Sep 2026. The company is loss-making with a ₹285.4 Cr net loss in FY0, and promoters are exiting entirely (26.34% → 0% post-issue), signaling weak confidence. Subscription at 0.12x indicates severe investor rejection, and the 5.4% revenue CAGR with negative ROCE (-4.75%) shows the business is not generating value.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 02 Sep 2026. The IPO is priced at a P/E of 16.3x. Market cap at issue price is ₹4639.63 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The issue closes on 02 Sep 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Purple Style Labs Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
Explore More