Purple United Sales IPO Booked Over 160 Times On Day 3; GMP Climbs Ahead Of Listing

Children's fashion brand Purple United Sales Ltd. which launched its public offer on Wednesday was subscribed over 160 times on Friday. The SME IPO was subscribed 7.58 times on the opening day and over 18 times on Thursday, led by demand from retail investors.

The issue consists entirely of a fresh issue of 26.04 lakh shares.

The Rs 32.81-crore Purple United Sales IPO is solely a fresh issue with no offer-for-sale component.

Purple United Sales IPO price band has been set between Rs 121 and Rs 126 per share. Retail investors have to apply for a minimum of 1,000 shares in one lot, taking the investment amount to Rs 1,26,000 for a single application.

Of the 26,04,000 shares offered -- 4,95,000 are reserved for Qualified Institutions, 3,71,000 for Non-Institutional Buyers, 8,66,000 for Retail Investors and 7,41,000 for Anchor investors.

KFin Technologies Ltd. is the registrar for the Purple United Sales IPO, while Expert Global Consultants Pvt. will act as its book-running lead manager. Prabhat Financial Services is the market maker for the issue. 

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Purple United Sales IPO was subscribed 160.08 times on Friday

• Qualified Institutions: 86.30 times

• Non-Institutional Buyers: 269.70 times

• Retail Investors: 155.29 times

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Purple United Sales IPO GMP (grey market premium) was Rs 55 on December 13, implying a listing gain of 43.65%. If the current GMP trends continue, the shares are likely to debut on bourses at Rs 181 apiece.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

The IPO was subscribed 18.04 times on Thursday, as per the market tracking site Chittorgarh:

• Qualified Institutions: 3.51 times

• Non-Institutional Buyers: 12.41 times

• Retail Investors: 28.77 times

The allotment for the Purple United Sales IPO is expected to be finalised on Monday, December 16, with credit of shares to demat accounts of successful bidders on Dec. 17. Refunds will be initiated for non-allottees on the same day.

Shares of Purple United Sales are likely to list on Wedneday, Dec. 18, on the NSE SME platform, Emerge.

Purple United Sales Ltd., through its flagship brand Purple United Kids, offers clothing, shoes and accessories to kids of all ages. It uses laboratory-tested products made of high-quality materials to make its clothes. Other than developing, sourcing, marketing and distributing clothing and footwear for children up to 14 years, the company sells accessories and hardware, including strollers. 

Purple United Sales Ltd. has 17 exclusive stores across five states and 10 cities in India, as well as 20 shop-in-shop locations in popular retail chains. Its products are also available online on their website and e-commerce platforms, including Flipkart, Amazon, Myntra, Nykaa, FirstCry, Ajio, Hopscotch and more.

The company will use proceeds of the IPO to open new stores, meet working capital requirements and for general corporate purposes.

Purple United Sales Ltd. reported a revenue from operations of Rs 30.5 crore and a net profit of Rs 3.29 crore for the half year ended September 30, 2024. In FY24, the company’s revenue increased 66.91% to Rs 42.91 crore from Rs 25.71 crore in FY23. The net profit during this time rose 222.7% year-on-year to Rs 4.81 crore from Rs 1.49 crore.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.