Purple United Sales Limited IPO Day 1: NSE SME issue booked over 7 times on high retail demand, check key details

The initial public offering (IPO) of kids fashion brand Purple United Sales Ltd was booked more than 7 times on the first day of bidding on Wednesday, December 11, driven by retail demand.

The NSE SME issue is open for subscription till December 13. The company aims to raise ₹32.81 crore through the IPO.

The IPO received bids for more than 1.28 crore shares against 17.32 lakh shares on offer, leading to an overall subscription of 7.3 times on the first day.

According to the NSE data, the retail individual investors placed bids for more than 95.54 lakh shares against 8.66 lakh shares on offer. The retail portion of the IPO was booked 11 times. In the Non-Institutional Investors (NIIs) category, the company received bids for over 16 lakh shares against 3.71 lakh shares reserved for the segment. The NIIs booked their quota 4.31 times.

The Qualified Institutional Buyers (QIBs) submitted applications for 17.34 lakh shares against 4.95 lakh shares allocated to them. The QIBs category was booked 3.5 times.

Purple United Sales IPO price band, offer size and minimum investment

Purple United Sales Ltd aims to raise ₹32.81 crore through its initial public offering. The NSE SME IPO is only a fresh issuance of 26.04 lakh shares and there is no offer-for-sale (OFS) portion.

The IPO price band has been fixed at ₹121 to ₹126 per share. The minimum lot size is 1,000 shares for retail investors, aggregating to an investment of ₹1,26,000 per application.

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

Purple United Sales IPO dates

Purple United Sales IPO subscription will close on December 13.

The company is expected to finalise the IPO share allotment status on December 16. Refunds to unsuccessful investors and credit of shares to the Demat accounts of allottees will be initiated on December 17.

The IPO listing date has been tentatively fixed as December 18. Shares of Purpose United Sales will be listed on the NSE SME platform, Emerge.

Use of IPO proceeds

Purple United Sales plans to utilise the funds raised through the IPO to meet expenditures for the opening of new stores and working capital requirements. A portion of the funds will also be used for general corporate purposes.

The company will invest ₹5.35 crore from the IPO proceeds in opening new stores. It intends to set up nine additional Exclusive Brand Outlets (EBOs) in the Fiscal 2025, across Delhi, Punjab, Haryana, Uttar Pradesh, West Bengal, Telangana and Maharashtra.

The company will allocate ₹18 crore towards working capital needs.

About Purple United Sales Limited

Purple United Sales is a premium fashion brand, primarily engaged in manufacturing and supply of high-quality apparel, footwear and accessories for children of all ages. The company offers apparel and footwear for infants (0 to 1 year), toddlers (2 to 6 years) and older kids (7 to 14 years).

The company has a strong offline and online presence. It operates through 24 exclusive brand outlets and multiple shop-in stores. It also offers its products through its own mobile app, website and e-commerce platforms like Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch and AJIO.