Purple United Sales Limited is coming up with an IPO with a fresh issue of 26,04,000 shares worth INR 32.81 crores. The company aims to effectively fund new store openings, working capital, and general corporate purposes. 

Purple United Sales IPO – Important Dates 

Read more about Purple United Sales Limited IPO GMP

Purple United Sales Limited IPO – Company Profile 

Purple United Sales Limited offers premium, lab-tested kids’ apparel, footwear, and accessories, emphasizing comfort, safety, and sustainability. Catering exclusively in India, it celebrates childhood with vibrant designs for infants to 14-year-olds. 

With a robust omni-channel network, the company delivers premium, stylish kids’ products, emphasizing quality, innovation, and growth to meet diverse consumer needs and cater to India’s high-frequency retail market. 

The company offers a diverse kids’ product range through a Pan-India omnichannel network with 24 EBOs, 14 shop-in-shops, distributors, and a growing online presence via marketplaces and its website. 

Purple United Sales Ltd IPO Fundamental Analysis 

Purple United Sales Limited’s financial analysis reveals a mixed performance. Revenue shows consistent growth, profitability, and EPS have improved, but reduced RoNW, liquidity challenges, and lower inventory turnover highlight areas needing attention for sustained growth. 

• Revenue Trend: The revenue increased from ₹1,651.89 lakhs in March 2022 to ₹2,569.45 lakhs in March 2023. The revenue for the current year’s 6-month period ending September 2024 is INR 3,050.10 lakhs.
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly increased from ₹177.16 lakhs in March 2022 to ₹329.28 lakhs by September 2024. This improvement in profitability could be a source of confidence among investors. 
• Earnings per Share (EPS): The diluted EPS has risen from ₹3.20 in March 2022 to ₹4.77 by March 2024, reflecting higher earnings per share for investors. 
• Return on Net Worth (RoNW): The RoNW has reduced from 28.69% to 13.90%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: The inventory Turnover Ratio has significantly decreased, which might suggest slower sales or inefficient inventory management. 

Check out the other upcoming IPOs this month:

Purple United Sales IPO Financial Analysis 

Purple United Sales Limited IPO Peer Comparison 

Purple United Sales Limited has a competitive financial profile, showcasing a unique market positioning. Comparatively, S.P. Apparels, Iris Clothing, and Karnika Industries display varied scales, profitability, and valuations, reflecting diverse industry dynamics and strengths. 

Purple United Sales Ltd IPO Objective 

The main objective of Purple United Sales Limited is to fund new store openings and meet working capital requirements, ensuring sustainable growth and enhanced operational efficiency. 

1. Expenditure for opening new stores: The company intends to utilize INR 5.35 crores from the Net Proceeds to establish nine new Exclusive Brand Outlets in Delhi, Punjab, Haryana, Uttar Pradesh, West Bengal, Telangana, and Maharashtra in Fiscal 2025. 

2. Working Capital Requirements: The company plans to utilize INR 22.71 crores for incremental working capital in FY 2025, supporting its aggressive expansion, strategic marketing initiatives, and increased supplier advances to secure raw material supply. 

3. General Corporate Purposes: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses, repaying borrowings, working capital requirements, strengthening business development, marketing, and addressing unforeseen exigencies. 

Purple United Sales IPO Risks And Challenges 

Purple United Sales Limited’s risk includes dependency on NCR revenue, potential expansion delays, cost overruns, regulatory challenges, and reliance on working capital and external financing, which could negatively impact operations, financial stability, and growth prospects. 

• Revenue from the National Capital Region (NCR) accounted for 16.61% of the company’s total income as of September 30, 2024. Any adverse impact in this region could affect business, operations, and financial performance. 

• The company’s expansion plans are subject to risks like cost overruns, delays, regulatory issues, and external factors, which may impact financial performance, operations, and growth if not completed as planned or on schedule. 

• The company relies on significant working capital and external financing, with potential risks from increased debt or equity financing. Any delays in securing funds or meeting obligations could negatively impact operations, financial stability, and growth prospects. 

Purple United Sales Ltd IPO – Industry & Market Potential 

The Indian textile and apparel industry is expected to grow from USD 125 billion in FY 2023 to USD 250 billion by FY 2031, reflecting a 9% CAGR driven by rising domestic demand, e-commerce, and government initiatives. 

The kid’s wear sector is projected to grow at a CAGR of 4.4%, reaching USD 27.06 billion by FY 2030. Western wear dominates with an 88% market share, while the organized retail sector is expected to grow 12.6%. 

Western wear dominates the kidswear market, growing from USD 13.3 billion in FY 2023 to USD 23.9 billion by FY 2030. Ethnic wear, more minor at USD 1.8 billion, is also expanding, reaching USD 3.2 billion by FY 2030. 

Purple United Sales Limited IPO – Type of Offer 

Purple United Sales Limited is coming up with an IPO with a fresh issue of 26,04,000 shares worth INR 32.81 crores. The company aims to effectively fund new store openings, working capital, and general corporate purposes. 

Purple United Sales IPO Offer Size 

The offer size of Purple United Sales Limited is INR 32.81 crores, consisting of a fresh issue of 26,04,000 shares. The company aims to effectively fund new store openings, working capital, and general corporate purposes. 

Purple United Sales Limited IPO Allotment Structure 

Purple United Sales Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 131,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 131,000 shares, are reserved for market makers. 

How to apply for Purple United Sales IPO?

To apply for the Purple United Sales Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Purple United Sales Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Purple United Sales Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check Purple United Sales IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Purple United Sales Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Purple United Sales Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Purple United Sales Limited IPO:

● Registrar’s Website: Visit the website of Kfin Technologies Limited, the registrar of the Purple United Sales Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Purple United Sales Ltd IPO Offer Registrar

The registrar for the Purple United Sales Limited IPO is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Kfin Technologies Limited

Selenium Tower-B, Plot 31 & 32, 

Gachibowli, Financial District, 

Nanakramguda, Serilingampally, 

Hyderabad – 500 032, Telangana

Telephone: +91 40 6716 2222;

Email: [email protected];

Website: www.kfintech.com 

Purple United Sales IPO – FAQs 

1. What is the allotment date of the Purple United Sales IPO? 

The allotment date of the Purple United Sales is December 16, 2024. 

2. What is the price band of the Purple United Sales IPO? 

The price band of the issue is INR 121-126 per share. 

3. What is the size of the Purple United Sales IPO? 

The offer size of Purple United Sales Limited is INR 32.81 crores, consisting of a fresh issue of 26,04,000 shares. The company aims to effectively fund new store openings, working capital, and general corporate purposes. 

4. What is the listing date of the Purple United Sales IPO? 

The listing date of the Purple United Sales is December 18, 2024. 

5. Where is the Purple United Sales IPO Getting Listed? 

Purple United Sales IPO is getting listed at the National Stock Exchange (NSE) and the Small Medium Exchange (SME). 

6. What are the open and close dates of the Purple United Sales Limited IPO? 

The open and close dates of Purple United Sales Limited are December 11, 2024, and December 13, 2024, respectively. 

7. How to apply for Purple United Sales Ltd IPO in Alice Blue? 

To apply for the Purple United Sales Limited IPO through Alice Blue, open a Demat and Trading Account, check the IPO details, place your bid, and submit your application. After allotment, check the status. Allotment depends on demand and is not guaranteed. 

8. Who is the Book Runner for the Purple United Sales IPO? 

The Book Runner for the Purple United Sales is Expert Global Consultants Private Limited.