Purple Style Labs (PSL), the company behind Pernia's Pop-Up Shop, raised ₹680 crore through an IPO made entirely of fresh shares.
Shah Rukh Khan, Salman Khan, Sachin Tendulkar, Madhuri Dixit, and Mahesh Babu were among the names on Purple Style Labs’ shareholder list.
Naturally, those names attracted attention.
Having watched IPOs for more than 3 decades, I tend to spend more time on a less glamorous section of the prospectus: Objects of the Issue.
Purple Style Labs raised ₹680 crore entirely through fresh shares, with no offer-for-sale component, which means existing shareholders were not selling shares through the IPO.
So where was the new capital going? About ₹371.13 crore was earmarked for lease liabilities of experience centers and back-end offices in India.
Another ₹138.90 crore was allocated to sales and marketing. The remaining proceeds were meant for general corporate purposes.
Purple Style Labs operates Pernia’s Pop-Up Shop across digital channels and a network of physical experience centers, with more than 2 lakh products from 1,300+ designers.
Celebrity shareholders make an IPO easier to notice.
The prospectus helps you understand something more useful: What is the company raising money for, and where will that money actually go?
After three decades in capital markets, that is one question I would spend considerable time on before forming a view on any IPO.
Which section of an IPO prospectus do you read first?
(For educational purposes only, and this is not investment advice.)
