🚫 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. Revenue growth of 5.4% over two years is stagnant for e-commerce, and the 1.36x subscription indicates weak investor demand.
Listing Performance
Issue Price
₹575
Allotment price
Listing Price
₹539
-6.26% on listing day
Current Price (CMP)
₹502.4
-12.6% vs issue
Listed On
07 Sep 2026
BSE & NSE
Our Analysis — Key Points
⚠ Risk
Significant Operating Losses
The company reported a ₹285.4 Cr net loss in FY0 despite ₹557.84 Cr in revenue, yielding a negative net profit margin of -51.2%. This loss-making status is a disqualifying factor under IPO Subscribe criteria and indicates the business model is not yet profitable at scale.
⚠ Risk
Complete Promoter Exit Post-Issue
Promoter holding collapses from 26.34% pre-issue to 0% post-issue, representing a full exit by founder Abhishek Agarwal. This signals weak founder conviction in the company's future and raises governance and accountability concerns for minority shareholders.
⚠ Risk
Stagnant Revenue Growth Trajectory
Revenue CAGR over two years is only 5.4% (₹510 Cr → ₹567.1 Cr), well below the 20%+ threshold expected in e-commerce. The company also reported a revenue decline from FY-1 (₹494 Cr) to FY0 (₹567.1 Cr), showing inconsistent execution.
⚠ Risk
Weak Investor Demand Signal
Overall subscription of 1.36x is below the 2.0x threshold typically seen for Mainboard IPOs and indicates lukewarm market reception. This weak demand, combined with loss-making status, suggests the market has already priced in execution risk.
₹ Valuation
Valuation Metrics Distorted by Losses
The reported P/E of 16.3x is not meaningful because the company is loss-making; P/S of 8.3x is elevated for e-retail (typically 2–5x for profitable peers). With negative ROCE of -4.75%, the company is destroying shareholder capital and does not merit a premium valuation.
👁 Watch
Path to Profitability and Cash Burn
Investors must closely monitor quarterly cash burn rates and management's timeline to profitability. With ₹371.13 Cr earmarked for lease liabilities and ₹138.90 Cr for marketing, the company must demonstrate a clear path to positive operating cash flow within 12–18 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. Revenue growth of 5.4% over two years is stagnant for e-commerce, and the 1.36x subscription indicates weak investor demand.
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 ₹502.4 (-12.6% 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. Revenue growth of 5.4% over two years is stagnant for e-commerce, and the 1.36x subscription indicates weak investor demand.
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.
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