The Purple United Sales IPO is set to open for subscription on December 11, 2024, and will close on December 13, 2024. This SME IPO is entirely a fresh issue, with a total of 26.04 lakh shares being offered to raise ₹32.81 crore. Investors can expect the allotment to be finalized on Monday, December 16, 2024, with the tentative listing date scheduled for Wednesday, December 18, 2024, on the NSE SME platform.
The IPO comes with a price band of ₹121 to ₹126 per share, making it accessible to a range of investors. The minimum lot size for an application is 1,000 shares, which translates to a minimum investment of ₹126,000 for retail investors. For high-net-worth individuals (HNIs), the minimum investment is ₹252,000 for two lots (2,000 shares).
With a face value of ₹10 per share, the Purple United Sales IPO is entirely a fresh issue. This means all the proceeds from the IPO will directly contribute to the company’s growth and expansion initiatives. As an SME IPO, it offers an excellent opportunity for investors looking to explore high-growth potential in niche markets.
The shares are expected to debut on the NSE SME platform on December 18, 2024, giving investors an opportunity to trade and benefit from early listing gains. This IPO is a noteworthy opportunity for retail and institutional investors alike, thanks to its attractive price band, reasonable lot size, and significant market potential.
Overview of Contents
About Purple United Sales
Incorporated in 2014, Purple United is a leading fashion brand specializing in clothing, shoes, and accessories for children of all ages. Its flagship line, “Purple United Kids,” caters to infants, toddlers, and older children up to 14 years, offering high-quality, lab-tested products in vibrant designs for every occasion. The brand boasts a diverse portfolio, including apparel, footwear, strollers, and accessories, ensuring a complete range of children’s products.
With a strong presence in India, Purple United operates through 17 exclusive stores (EBOs) in five states and ten cities, 20 shop-in-shop locations, and partnerships with 44 retailers nationwide. Its products are also widely available online via platforms like Amazon, Flipkart, Myntra, FirstCry, Nykaa, AJIO, and Hopscotch, along with its website and app.
The company’s competitive edge lies in its vast product range, robust design capabilities, and focus on fun, fashion, and functionality (3Fs). Backed by an experienced management team, control over distribution channels, and strong financial performance, Purple United is well-positioned to capitalize on the rapidly growing children’s market. As of June 30, 2024, the company employed 161 full-time staff, driving its vision of delivering quality and value.
Purple United Sales IPO Details
| IPO Details | Key Information |
|---|---|
| IPO Date | December 11, 2024 to December 13, 2024 |
| Listing Date | December 18, 2024 (Tentative) |
| Face Value | ₹10 per share |
| Price Band | ₹121 to ₹126 per share |
| Lot Size | 1,000 shares |
| Total Issue Size | 2,604,000 shares (aggregating up to ₹32.81 crore) |
| Fresh Issue | 2,604,000 shares (aggregating up to ₹32.81 crore) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Pre-Issue Shareholding | 7,005,800 shares |
| Post-Issue Shareholding | 9,609,800 shares |
| Market Maker Portion | 131,000 shares |
| Minimum Investment (Retail) | ₹126,000 (1 lot - 1,000 shares) |
| Minimum Investment (HNI) | ₹252,000 (2 lots - 2,000 shares) |
| Retail Allocation | 50% of the issue size |
| Promoter Holding Pre-IPO | 82.25% |
| Promoter Holding Post-IPO | 72.85% |
| Registrar | XYZ Registrars Private Limited |
| Objective of the IPO | Fund expansion plans, strengthen distribution channels, and working capital. |
Purple United Sales IPO Dates
| Event | Date | Additional Information |
|---|---|---|
| IPO Open Date | Wednesday, December 11, 2024 | Investors can start placing bids for the IPO. |
| IPO Close Date | Friday, December 13, 2024 | Final day to submit applications; ensure UPI mandates are confirmed before the cut-off time. |
| Cut-off Time for UPI Mandate | 5 PM on December 13, 2024 | UPI mandate confirmation required for applications to be valid. |
| Basis of Allotment Finalization | Monday, December 16, 2024 | Allotment status to be finalized and shared with investors. |
| Initiation of Refunds | Tuesday, December 17, 2024 | Refunds to unsuccessful bidders will be initiated on this date. |
| Credit of Shares to Demat | Tuesday, December 17, 2024 | Successfully allotted shares will be credited to investors' Demat accounts. |
| Listing Date | Wednesday, December 18, 2024 | Shares will debut on the NSE SME platform for trading. |
Purple United Sales IPO Lot Size and Investment Details
Investors in the Purple United Sales IPO can bid for a minimum of 1,000 shares and in multiples thereof. The IPO offers investment opportunities for both retail investors and high net-worth individuals (HNIs). Below is a breakdown of the minimum and maximum investment requirements:
| Application Type | Lots | Shares | Investment Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 1,000 | ₹126,000 |
| Retail (Maximum) | 1 | 1,000 | ₹126,000 |
| HNI (Minimum) | 2 | 2,000 | ₹252,000 |
Key Points to Note
- Retail Investors: Can apply for one lot only, which requires a minimum investment of ₹126,000.
- HNI Investors: Must bid for at least two lots or more, with a minimum investment of ₹252,000.
- Lot Multiples: Investments can only be made in multiples of 1,000 shares, making it easy for investors to calculate their bidding amounts.
This structured lot size ensures accessibility for retail investors while providing scalable opportunities for HNI investors. Make sure to plan your bid accordingly to meet the eligibility requirements.
Purple United Sales IPO Promoter Holding
The promoters of Purple United Sales IPO are Mr. Jatinder Dev Seth, Mrs. Bhawana Seth, Innovation Mobile, Web Technologies Private Limited, Mr. Manish Dev Seth, and Mrs. Monica Seth, who collectively play a crucial role in the company’s management and growth strategy.
Prior to the IPO, the promoters hold a significant 87.54% stake in the company. Post-IPO, their shareholding is expected to decrease due to the fresh issue of shares, which will dilute their stake while bringing in new investors. This step aims to strengthen the company’s capital structure and support its growth objectives.
Purple United Sales IPO Financial Performance
The financial performance of Purple United Sales showcases steady growth over the past three years, reflecting the company’s ability to scale operations and improve profitability. In FY 2024, the company achieved a significant revenue growth of ₹42.20 crores, compared to ₹25.71 crores in FY 2023, marking a robust increase of over 60%. Profitability also improved considerably, with the company reporting a net profit of ₹4.82 crores in FY 2024, a substantial rise from ₹1.49 crores in the previous year. The table below highlights key financial metrics over the last three fiscal years:
| Period Ended | Revenue | Expense | Profit After Tax | Assets |
|---|---|---|---|---|
| 2022 | ₹16.56 Cr | ₹15.39 Cr | ₹1.77 Cr | ₹22.79 Cr |
| 2023 | ₹25.71 Cr | ₹23.62 Cr | ₹1.49 Cr | ₹32.51 Cr |
| 2024 | ₹42.20 Cr | ₹36.95 Cr | ₹4.82 Cr | ₹49.14 Cr |
Key Financial Insights
- Revenue Growth: From ₹16.56 crores in 2022 to ₹42.20 crores in 2024, demonstrating a 155% growth over two years.
- Profitability: Net profit has grown by over 223%, highlighting the company’s improved cost management and efficiency.
- Asset Base Expansion: Total assets have more than doubled in three years, from ₹22.79 crores in 2022 to ₹49.14 crores in 2024, reflecting strong reinvestment and expansion strategies.
These figures indicate a strong financial foundation, positioning Purple United Sales for sustainable growth and enhanced market presence post-IPO.
Purple United Sales IPO Valuation – FY2024
The valuation of Purple United Sales IPO highlights key financial performance indicators for FY 2024, showcasing the company’s profitability and efficiency. Below is a summary of the valuation metrics:
| KPI | Values |
|---|---|
| Return on Equity (ROE) | -% |
| Return on Capital Employed (ROCE) | 19.35% |
| EBITDA Margin | 23.08% |
| Profit After Tax (PAT) Margin | 11.26% |
| Debt-to-Equity Ratio | 1.48 |
| Earnings Per Share (EPS) | ₹7.26 (Basic) |
| Price/Earnings (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 27.78% |
| Net Asset Value (NAV) | ₹26.14 |
Key Insights
- The company maintains a healthy EBITDA margin of 23.08%, indicating strong operational efficiency.
- With a Debt-to-Equity Ratio of 1.48, the company has a balanced approach to leveraging debt.
- The Return on Net Worth (RoNW) of 27.78% demonstrates the company’s ability to generate returns for its shareholders.
These metrics provide a clear picture of the company’s financial strength and valuation prospects for potential investors.
Peer Group Comparison
The following table presents a comparison of Purple United Sales IPO with its peers in the fashion and apparel industry based on key financial metrics for a better understanding of its relative position in the market.
| Company | EPS (₹) | P/E Ratio | RoNW (%) | NAV (₹) | Income |
|---|---|---|---|---|---|
| S.P. Apparels Limited | 35.72 | 24.45 | 11.74 | 304.32 | ₹1,087.36 Cr. |
| Monte Carlo Fashions Limited | 28.91 | 24.29 | 7.54 | 383.41 | ₹1,061.91 Cr. |
| Kewal Kiran Clothing Limited | 25.00 | 27.21 | 22.77 | 109.78 | ₹860.50 Cr. |
| Brainbees Solutions Limited | (6.20) | NA | (8.48) | 93.07 | ₹6,480.86 Cr. |
Key Insights:
- Earnings Per Share (EPS): S.P. Apparels has the highest EPS among the peers at ₹35.72, with Purple United Sales’ EPS at ₹7.26 being significantly lower.
- Price-to-Earnings (P/E) Ratio: While S.P. Apparels has a P/E ratio of 24.45, Purple United Sales is yet to have a P/E ratio as it has not listed yet. However, the P/E ratios of peers suggest the industry averages between 24-27.
- Return on Net Worth (RoNW): Kewal Kiran Clothing stands out with a RoNW of 22.77%, much higher than the others, compared to Purple United Sales’ RoNW of 27.78%, indicating strong performance relative to its peers.
- Net Asset Value (NAV): S.P. Apparels has a NAV of ₹304.32, which is significantly higher compared to Purple United Sales’ NAV of ₹26.14.
- Income: Brainbees Solutions stands out with the highest income of ₹6,480.86 Cr., while Purple United Sales operates at a smaller scale with ₹42.20 Cr in revenue.
Objects of the Issue
| Purpose | Description |
|---|---|
| Opening New Stores | A portion of the funds will be utilized for expanding the company’s physical presence by opening new stores. This will help increase its reach and visibility in the market. |
| Working Capital Requirements | The company plans to allocate funds to meet its working capital needs, ensuring smooth day-to-day operations, including inventory management, manufacturing, and supply chain. |
| General Corporate Purposes | The remaining funds will be used for general corporate purposes, which may include business expansion, improving infrastructure, and enhancing operational efficiency. |
Purple United Sales IPO Registrar
- KFin Technologies Limited
- Phone: 04067162222, 04079611000
- Email:Â pusl.ipo@kfintech.com
- Website:Â https://kosmic.kfintech.com/ipostatus/
Company Address
- Purple United Sales Limited
- Khasra No. 55/14 & 55/15,
- Near Rani Khera Road,
- Mundka, West Delhi, New Delhi, Delhi, India, 11004
- Phone: +91 9667792635
- Email: mailto:jdseth@purpleuni
- Website:Â https://purpleunited.in/
FAQs about Purple United Sales IPO
What is the issue size of the Purple United Sales IPO?
The IPO is a fresh issue of 2,604,000 shares, aggregating up to ₹32.81 crores.
When will the Purple United Sales IPO open and close?
The IPO will open for subscription on December 11, 2024 and close on December 13, 2024.
What is the price band for the Purple United Sales IPO?
The price band is set at ₹121 to ₹126 per share.
What is the minimum lot size for the IPO?
The minimum lot size is 1000 shares, with a minimum investment amount of ₹126,000.
When is the tentative listing date for the Purple United Sales IPO?
The tentative listing date is December 18, 2024, on the NSE SME.
 Who are the promoters of Purple United Sales?
The promoters include Mr. Jatinder Dev Seth, Mrs. Bhawana Seth, Innovation Mobile, Web Technologies Private Limited, Manish Dev Seth, and Monica Seth.
What will the funds raised from the IPO be used for?
The funds will be used for opening new stores, meeting working capital requirements, and for general corporate purposes.
 What is the company’s business model?
Purple United Sales is a children’s fashion brand offering clothing, footwear, and accessories for children across various age groups. They operate both through exclusive stores and online platforms.