Purple United Sales IPO Day 3: NSE SME issue booked over 160 times on strong demand from NIIs, retail investors

The three-day bidding window for the initial public offering of kids' fashion brand Purple United Sales Ltd closed with a bumper response from the investors. The ₹32.81-crore SME issue was booked over 160 times with bids for more than 27.73 crore shares against 17.32 lakh shares on offer.

The strong demand for the NSE SME IPO was led by Non-Institutional Investors (NIIs), who subscribed their quota by more than 270 times. The NIIs placed bids for over 10 crore shares against 3.71 lakh shares on offer.

The retail segment in Purple United Sales IPO was subscribed over 155.2 times with bids for more than 13.44 crore shares. The company had reserved 8,66,000 shares for the retail investors. The Qualified Institutional Buyers’ allocation of the public issue saw the lowest demand. The issue was booked 86.3 times in the QIBs category with bids for over 4.27 crore shares surpassing the allocation of 4,95,000 shares.

Purple United Sales IPO price band, offer size and other key details

Purple United Sales Ltd IPO was a book-built issue aimed at raising ₹32.81 crore through fresh issuance of 26.04 lakh shares. The IPO did not contain any offer-for-sale (OFS) portion.

The company raised ₹9.34 crore from anchor investors ahead of opening the subscription window for the public offer.

The IPO price band was set in the range of ₹121 to ₹126 at a face value of ₹10 per share. Retail investors could have bid in the offer with a minimum lot size of 1,000 shares, resulting in an investment ₹1,26,000 per application.

Expert Global Consultants Private Limited is serving as the sole book-running lead manager for the issue whereas Kfin Technologies Limited is its registrar. Prabhat Financial Services is the market maker for the Purple United Sales IPO.

Purple United Sales IPO dates

With the bidding window closing on December 13, Purple United Sales is expected to finalise the share allotment status on December 16. This will be followed by the initiation of refunds for the non-allottees and credit of shares into the Demat account of successful bidders.

Shares of the company are proposed to be listed on the NSE SME platform, Emerge, on December 18.

About Purple United Sales and use of IPO proceeds

Purple United Sales Ltd, operates in the premium fashion brand space, primarily engaging in the manufacturing and supply of high-quality apparel, footwear and accessories for children.

The company has a strong offline and online presence, operating through 24 exclusive brand outlets and multiple shop-in stores.

The company retails its products online through its own mobile app, website and e-commerce platforms like Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch and AJIO.

Purple United Sales, in its red herring prospectus, said that it will use the net proceeds from the IPO to fund the opening of new stores. A portion of the fund will be used for working capital requirements and general corporate purposes.

The company has proposed to use ₹5.35 crore from the IPO proceeds to open new stores.