Purple United Sales IPO Opens December 11 – Check Details
Purple United Sales IPO: Fashion Brand to Open for Subscription on December 11, Aiming to Raise Rs 33 Crore
Purple United Sales Limited, a rapidly growing Noida-based fashion brand, is all set to launch its Initial Public Offering (IPO) on December 11, 2024.
The company, which specializes in kids’ apparel under the brand Purple United Kids, aims to raise approximately Rs 32.81 crore through this public issue.
The IPO will offer shares in the price band of Rs 121 to Rs 126 per share, with a total of 26.04 lakh fresh equity shares being issued.
Notably, there will be no Offer for Sale (OFS) component, meaning that the entire amount raised will directly benefit the company, enabling it to fund its growth and expansion plans.
This IPO represents a significant milestone for Purple United Sales, which has made impressive strides in the kids’ wear segment since its founding in 2014.
The company has established a strong presence in India and is looking to further strengthen its position in the competitive fashion industry through this public offering.
Key IPO Details and Subscription Timeline
The Purple United Sales IPO will be open for subscription from December 11 to December 13, 2024. During this period, investors can place bids for shares within the specified price band.
Once the subscription period ends, the company plans to list its shares on NSE Emerge, with trading expected to begin on December 18, 2024.
The IPO will be a fresh issue of equity shares, with no shares being sold by existing shareholders, as there is no Offer for Sale (OFS).
The company aims to raise a total of Rs 32.81 crore, which will be used primarily for funding working capital needs, opening new retail stores, and for general corporate purposes.
How the Funds from the IPO Will Be Used
The proceeds from the Purple United Sales IPO will be allocated in a strategic manner to support the company’s growth initiatives:
- Working Capital Needs (Rs 18 crore): The company plans to allocate a substantial portion of the funds to support its day-to-day business operations and ensure adequate liquidity for its expanding business. The fashion industry, especially in the kids’ apparel segment, is highly dynamic, and the company’s growth plans necessitate a stable working capital position.
- Opening of New Stores (Rs 5.35 crore): Another key area where the funds will be utilized is the expansion of the company’s physical retail presence. The company plans to open new stores in cities and regions where it has identified strong growth potential. Purple United Sales already operates 17 exclusive brand outlets (EBOs) across 5 states and 10 cities, and the additional capital will allow it to reach a wider audience and strengthen its retail footprint.
- General Corporate Purposes: The remaining portion of the funds will be used for general corporate purposes, including potential investments in technology, logistics, marketing, and other operational areas to enhance the company’s competitiveness and scale its business efficiently.
Investor Allocation and Key Dates
The company has decided to allocate the IPO shares across various investor categories as follows:
- 50% of the net issue will be reserved for Qualified Institutional Buyers (QIBs), which includes entities such as mutual funds, insurance companies, and other institutional investors.
- 15% of the net issue will be reserved for Non-Institutional Investors (NIIs), which includes high-net-worth individuals (HNIs) and corporate bodies.
- 35% of the net issue will be allocated to Retail Investors, ensuring that the general public has access to this investment opportunity.
Given the strong growth potential of the brand and its increasing visibility in the Indian kids’ wear market, the IPO is expected to attract significant interest across all categories of investors.
About Purple United Sales: A Growing Force in the Kids’ Fashion Segment
Founded in 2014 by Jatinder Dev Seth, Purple United Sales has made a remarkable impact in the Indian kids’ wear market.
The company primarily operates under the Purple United Kids brand, offering a wide range of clothing and accessories for children.
Over the years, the company has built a robust distribution network, which includes 17 exclusive brand outlets (EBOs) across 5 states and 10 cities, as well as 20 shop-in-shop locations within leading retail chains.
In addition to its physical retail presence, Purple United Sales has capitalized on the growing trend of online shopping. Its products are available on major e-commerce platforms, including Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch, and AJJIO, enabling the brand to reach a broad customer base across the country.
The company also has a direct-to-consumer channel through its own website and mobile app, further enhancing its ability to connect with consumers.
Moreover, Purple United Sales has formed strategic partnerships with over 44 retailers across India, allowing its products to be sold in a wide range of stores, from regional boutiques to large multi-brand retail outlets.
Financial Performance: Strong Growth and Profitability
Purple United Sales has demonstrated solid financial growth over the past few years, making it an attractive investment opportunity.
In the financial year 2024, the company reported a net profit of Rs 4.8 crore, a significant improvement over its net profit of Rs 1.49 crore in FY 2023.
This impressive jump in profitability highlights the company’s strong operational efficiencies and its successful business strategy in the competitive kids’ fashion space.
Revenue also showed a notable increase, rising to Rs 42.77 crore in FY 2024, up from Rs 25.7 crore the previous year.
The company’s ability to grow revenue while improving profitability demonstrates its effective execution of its business model, even in a challenging economic environment.
For the six-month period ending September 2024, Purple United Sales reported a profit of Rs 3.3 crore on revenue of Rs 30.5 crore, further underscoring its robust financial health and operational efficiency.
Merchant Banker and Registrar for the IPO
Expert Global Consultants has been appointed as the merchant banker for the IPO, handling the underwriting and regulatory aspects of the offering.
KFin Technologies will act as the registrar for the issue, overseeing the allotment process and ensuring smooth investor transactions.
Final Remarks: A Promising Investment Opportunity
The Purple United Sales IPO presents an exciting opportunity for investors to tap into the growing kids’ wear segment in India.
With strong financial growth, an expanding retail presence, and an increasingly robust online presence, the company is well-positioned to capitalize on the rising demand for children’s apparel in India.
The IPO proceeds will allow the company to expand its footprint, enhance its working capital position, and further strengthen its competitive edge in the market.
Investors looking for exposure to the Indian retail sector, particularly in the fashion and e-commerce space, may find this IPO an attractive proposition.
The combination of strong financial performance, a clear growth strategy, and a well-defined use of IPO proceeds makes Purple United Sales a promising candidate for investors seeking long-term growt