Purple Style Labs Shares Debut 7% Lower; Analyst Flags High Valuation, Negative Net Worth

The luxury fashion platform’s shares later moved above the ₹575 IPO price after a weak debut on the NSE and BSE

Outlook Business Desk

Curated by: Satyam Mishra

Published At: 7 September 2026 1:07 pm

Purple Style Labs Shares List At 7% Discount; Check Investor Loss Per Lot

Summary of this article

Purple Style Labs shares debuted at ₹535, down 6.9% from the IPO price.
IPO allottees lost ₹1,040 per lot after Purple Style Labs’ weak listing.
Widening losses and high valuation raise concerns over Purple Style Labs’ outlook.

Purple Style Labs shares, the parent company of Pernia’s Pop-Up Shop, made a weak debut on Monday, listing at a discount of over 6% to the IPO price of ₹575 before later moving above the offer price.

On the NSE, the stock debuted at ₹535, a discount of 6.9% to the issue price. On the BSE, it listed at ₹539, down 6.2%.

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However, the shares later recovered and climbed to ₹588.90 on the NSE and ₹588.10 on the BSE, trading above the IPO price at the time of writing.

Purple Style Labs Sets IPO Price Band At ₹546-575/Share; Issue To Open Aug 31

BY PTI

Purple Style Labs IPO Subscription

The initial public offering of Purple Style Labs Ltd received 1.29 times subscription overall.

The retail investors’ portion was subscribed 1.58 times, while the qualified institutional buyers’ category received 1.43 times subscription. The quota for non-institutional investors was subscribed 84%.

The company had raised ₹306 crore from anchor investors.

The public offer comprised entirely a fresh issue of equity shares aggregating up to ₹680 crore, with no offer-for-sale component. The price band was fixed at ₹546-575 per share.

At the upper end of the price band, the issue valued Purple Style Labs at a market capitalisation of over ₹4,600 crore.

How Much Did Investors Lose Per Lot?

A lot consisted of 26 shares and cost ₹14,950 at the IPO’s upper price band.

Based on the NSE listing price of ₹535, investors who received the Purple Style Labs IPO allotment saw the value of their investment fall to ₹13,910.

This translates into a loss of ₹1,040 per lot, or around 7% of the IPO investment, at the listing price.

The company plans to use ₹371.13 crore of the IPO proceeds for investment in its wholly owned subsidiary PSL Retail towards lease liabilities of experience centres and back-end offices in India.

It will use ₹138.90 crore for sales and marketing expenses, while the remaining proceeds will go towards general corporate purposes.

Analyst Flags Widening Losses, Valuation Concerns

Promoted by Abhishek Agarwal, Purple Style Labs operates a multi-brand luxury fashion omni-channel platform. Its publicly disclosed celebrity investors include Shah Rukh Khan, Salman Khan and his family, Sachin Tendulkar, Madhuri Dixit, and Mahesh Babu.

Shivani Nyati, Head of Wealth at Swastika Investmart, said, “Purple Style Labs made a weak debut, listing at ₹535 on NSE, around 7% below its ₹575 issue price. Our view remains Avoid, as the company’s PAT loss has widened sharply from ₹47.7 crore in FY24 to ₹188.4 crore in FY25 and ₹285.4 crore in FY26, with no clear path to breakeven. Valuation also looks expensive at around 9.3–9.6x FY26 revenue, while P/E and P/B are not meaningful due to losses and negative net worth. Moreover, around 55% of IPO proceeds will be used for lease liabilities and ₹138.9 crore for marketing, leaving limited funds for growth. For existing investors, we suggest keeping a stop loss at ₹500. Overall, widening losses, negative net worth and high valuation make the risk-reward unattractive at current levels.”