Tepid debut: Purple Style Labs shares list at 7% discount to IPO price on NSE

Reports coming in for today mention that Shares of Purple Style Labs made a weak debut on the bourses on September 7, stock-exchange debut at a discount of nearly 7 percent to the offering price after its initial public offering (IPO) received just over full subscription during the three-day bidding period.

The stock opened at Rs 535 on the NSE, down 6.96 percent from its offering price of Rs 575 per share. On the BSE, Purple Style Labs shares debuted at Rs 539, marking a discount of 6.26 percent to the offering price.

Following the stock-exchange debut, the firm's market capitalisation stood at around Rs 4,315.29 crore.

The stock's debut was weaker than indicated by grey market trends. Purple Style Labs' shares were commanding a grey market premium (GMP) that suggested a stock-exchange debut discount of nearly 2 percent on the morning of September 7, according to InvestorGain.

The firm's IPO was subscribed 1.29 times overall, with bids received for around 88.66 lakh shares against 68.49 lakh shares on offer. The retail investor portion was subscribed 1.58 times, while the qualified institutional buyer (QIB) category saw 1.43 times subscription. The non-institutional investor (NII) portion was subscribed 84 percent.

The IPO was priced in the range of Rs 546-575 per share and comprised entirely a fresh offering of 1.18 crore equity shares. There was no offer-for-sale component.

Ahead of the IPO, Purple Style Labs boosted Rs 306 crore from anchor market participants on August 28. The firm allotted 53.21 lakh shares at Rs 575 apiece to 10 anchor market participants. Check IPO News Here

The anchor market participants included Morgan Stanley Asia, BofA Securities Europe, Integrated Core Strategies, ICICI Prudential Mutual Fund, Jupiter India Fund, Aditya Birla Sun Life Insurance Firm, ITI Mutual Fund and Singularity Equity Fund I.

Purple Style Labs plans to use a large part of the IPO proceeds for its subsidiary PSL Retail. The funds will be used towards lease liabilities for Experience Centers and back-end offices in India, sales and marketing expenditure, and general corporate purposes, as stated by the firm's IPO documents.

Promoted by Abhishek Agarwal, Purple Style Labs operates Pernia's Pop-Up Shop, a multi-brand luxury fashion platform offering designer products across women's wear, men's wear, jewellery and accessories.

The firm at present operates 14 Experience Centers, including 12 in metropolitan cities in India. It additionally sells through its digital platform and reaches customers through events and exhibitions.