Purple United Sales IPO

Purple United Sales IPO

  • IPO Date11 Dec, 2024 to 13 Dec, 2024
  • Listing Date18 Jan, 2025
  • Face Value₹10 per share
  • Issue Price121 to ₹126 per share
  • Lot Size1000 Shares
  • Minimum Investment₹1,26,000
  • Listing AtNSE SME
  • Total Issue Size26,04,000 Shares
    (aggregating up to ₹32.81 Cr)
  • Fresh Issue26,04,000 Shares
    (aggregating up to ₹32.81 Cr)
  • Offer for Sale-
  • Issue TypeBook Built Issue IPO
  • Share holding pre issue70,05,800
  • Shareholding post issue96,09,800
IPO Dates

Closing Date

13 Dec, 2024

Initiation of Refunds

17 Dec, 2024

Listing Date

18 Dec, 2024

11 Dec, 2024

Opening Date

16 Dec, 2024

Basis of Allotment

17 Dec, 2024

Credit of Shares

UPI Mandate Expiry Date:13 Dec, 2024

Purple United Sales Lot Size

Investors can bid for a minimum of 1000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.

ApplicationLotsSharesAmount
Retail (Max)110001,26,000
Retail (Min)110001,26,000
B-HNI (Min)---
S-HNI (Min)220002,52,000
S-HNI (Max)---

Purple United Sales Promoter Holding

MR. Jatinder Dev Seth, MRS. Bhawana Seth, Innovation Mobile, Web Technologies Private Limited, Manish Dev Seth and Monica Seth are the Promoters of the Company

Pre Issue Share HoldingPost Issue Share Holding
87.54%-

Purple United Sales COMPANY INFORMATION

Purple United Sales IPO is a book built issue of Rs 32.81 crores. The issue is entirely a fresh issue of 26.04 lakh shares. Purple United Sales IPO opens for subscription on December 11, 2024 and closes on December 13, 2024. The allotment for the Purple United Sales IPO is expected to be finalized on Monday, December 16, 2024. Purple United Sales IPO will list on NSE SME with tentative listing date fixed as Wednesday, December 18, 2024. Purple United Sales IPO price band is set at ₹121 to ₹126 per share. The minimum lot size for an application is 1000 Shares. The minimum amount of investment required by retail investors is ₹126,000. The minimum lot size investment for HNI is 2 lots (2,000 shares) amounting to ₹252,000. Expert Global Consultants Private Limited is the book running lead manager of the Purple United Sales IPO, while Kfin Technologies Limited is the registrar for the issue.

Incorporated in 2014, Purple United is a fashion brand that offers clothing, shoes, and accessories for children of all ages.

The company's flagship line, "Purple United Kids", accompanies children up to the age of 14 and offers laboratory-tested products made of high-quality materials in bright colours and designs for every occasion. The company designs, develops, sources, markets and distributes clothing and footwear for infants (0 to 1 year), toddlers (2 to 6 years) and older children (7 to 14 years). The company offers a wide range of accessories and hardware, such as strollers.

The company operates mainly in India, with 17 exclusive stores (called EBOs) in 5 states and 10 cities in India and 20 shop-in-shop locations in popular retail chains. Purple United Kids products are also available online through their website, mobile app, and big e-commerce platforms like Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch, AJJIO, and more. Additionally, the company works with 44 retailers across the country.

The company's product range includes t-shirts, shirts, jackets, sweaters, apparel sets, dungarees, rompers, party wear, dresses, denim, trousers, jeggings, skirts, shoes, ballerinas, mules, moulds, flipflops, sandals, caps, tote bags, socks and strollers among others.

As of June 30, 2024, the company had 161 employees, all of whom were employed on a full-time basis.

Its competitive strengths:

  1. Well positioned to capitalise on the fast growing children's products market.
  2. Extensive product portfolio with quality products that offer a solid value proposition
  3. Strong backend with design capabilities, strong focus on the 3Fs (fun, fashion and functionality) and control over distribution channels.
  4. Experienced promoter and management team
  5. Strong financial performance

Purple United Sales IPO

 IPO Overview and Key Highlights

Purple United Sales, specializing in child care products and D2C (Direct-to-Consumer) models, is offering its Initial Public Offering (IPO). This comprises a fresh issue of up to 26,04,000 equity shares at a face value of Rs 10 per share. The IPO aims to fund business growth, working capital, and corporate expenses. The company’s shares will be listed on the NSE Emerge Platform?.

 Key IPO Details

  • Type of Issue: 100% Book Built Issue
  • Total Issue Size: 26,04,000 equity shares
  • Face Value: Rs 10 per share
  • Offer Opens: [To be announced]
  • Offer Closes: [To be announced]
  • Listing Exchange: NSE Emerge Platform

 Company Overview

Established in 2014 and headquartered in New Delhi, Purple United Sales caters to the niche market of children’s products, including apparel, toys, skincare, and baby essentials. The company utilizes a D2C approach to reach customers directly, bypassing traditional retail channels. Promoters Jatinder Dev Seth and Bhawna Seth, along with InnovationM Mobile and Web Technologies, bring expertise in product innovation and digital engagement?.

 Financial Overview

The company has shown steady revenue growth driven by rising demand for premium childcare products and increased online sales. IPO proceeds will strengthen its financial position, allowing expansion into new product lines and geographies.

 Key Strengths of Purple United Sales

  1. Strong Product Portfolio: Specializes in essential and premium childcare products.
  2. D2C Model Advantage: Direct engagement with customers enhances brand loyalty and profit margins.
  3. Promoter Expertise: Skilled leadership in marketing and technology.

 IPO Pros and Cons

 Pros

  • Growing Market: Increasing disposable income among middle and upper-income households fuels demand for childcare products.
  • Digital Engagement: Strong online presence capitalizes on e-commerce growth.
  • Funds Utilization: Proceeds allocated for scaling operations and launching new products.

 Cons

  • Market Competition: Competes with established brands and D2C players in the childcare space.
  • Economic Sensitivity: Revenue linked to consumer spending trends.
  • First Public Issue: Potential uncertainty around post-listing stock performance.

 Risk Factors

Investors should evaluate the following risks:

  • Economic Fluctuations: Dependency on discretionary spending trends may affect revenues.
  • Operational Challenges: Scaling up operations while maintaining product quality.
  • Regulatory Compliance: Adherence to child safety and product standards.

 Conclusion

The Purple United Sales IPO provides an opportunity to invest in a high-growth D2C company specializing in childcare products. With a focus on quality and a digital-first strategy, the company is well-poised for success. However, investors should consider potential risks, including market competition and economic sensitivity, before investing.

FAQs About Purple United Sales Ipo

Purple United Sales IPO will open on 11 Dec, 2024 and close on 13 Dec, 2024. Investors must apply within this period to participate.

The Purple United Sales IPO price band is set between ₹121.00 and ₹126.00 per share. The minimum lot size is 1000, requiring an investment of at least ₹126000.00.

The Purple United Sales IPO shares are expected to be listed on 18 Jan, 2025, subject to regulatory approvals and final allotment.

You can track your Purple United Sales IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID

The Purple United Sales IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.