Purple United Sales
Book Building issueSMENSE₹32.81 Cr issue
+57.94%
Listing gain over issue price
Issue size
₹32.81 Cr
1 lot at cut-off
₹1,26,000
Lot size
1,000shares
Open
11 Dec 2024
Close
13 Dec 2024
Allotment
16 Dec 2024
Listing
18 Dec 2024
Listing performance
Issue price
₹126
Listed at
₹199
Listing-day close
₹208.95
Latest price
₹415.05
Close on 23 Oct 2026
Listing gain
+57.94%
Return since issue
+229.40%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 11 Dec 2024 – 13 Dec 2024
- Listing date
- 18 Dec 2024
- Face value
- ₹10 per share
- Issue price
- ₹126 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹32.81 Cr
- Market cap at offer price
- ₹121 Cr
- Promoter holding
- 87.54% → 63.82% pre-issue → post-issue
- ISIN
- INE0P5R01014
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Expert Global Consultants Pvt.Ltd.
- Registered office
- Khasra No.55/14 & 55/15, Near Rani Khera Road, Mundka, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 7,41,000 | — | — |
| Market maker | 1,31,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹126
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,26,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,52,000 |
| S-HNI (max) | 7 | 7,000 | ₹8,82,000 |
| B-HNI (min) | 8 | 8,000 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
7,41,000
Anchor portion
₹9.34 Cr
at ₹126 per share
Valuation and performance
Valuation at offer price
₹126 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.87 | 6.85 |
| P/E (×) | 18.34 | 18.39 |
| Price to book (×) | 4.82 | — |
| Market cap | — | ₹121 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 27.78%
- ROCE
- 19.35%
- Debt / equity
- 1.48
- PAT margin
- 11.26%
- NAV per share
- ₹26.14
- Price to book
- 4.82
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Purple United Sales
Purple United Sales Limited was incorporated on September 16, 2014, and converted to a public limited company on June 20, 2024. The company exclusively caters to kids wear in India with focus on mindful product categorization for kids of all ages and segments. The company's brand ethos revolves around celebrating childhood, emphasizing comfort, safety, and sustainability. The company operates through a combination of retail outlets and online channels, with historical concentration in the National Capital Region (NCR) but expanding to Uttar Pradesh, Haryana, Punjab, Uttarakhand, Madhya Pradesh, Bihar, and Rajasthan. As of September 30, 2024, revenue from operations was ₹3,050.10 lakhs, with net profit of ₹329.28 lakhs.
Company Analysis
from RHPPurple United Sales Limited is a kids wear company in India offering age-appropriate, lab-tested children's apparel and related products with focus on comfort, safety, and sustainability.
Purple United Sales Limited was incorporated on September 16, 2014, and converted to a public limited company on June 20, 2024. The company exclusively caters to kids wear in India with focus on mindful product categorization for kids of all ages and segments. The company's brand ethos revolves around celebrating childhood, emphasizing comfort, safety, and sustainability. The company operates through a combination of retail outlets and online channels, with historical concentration in the National Capital Region (NCR) but expanding to Uttar Pradesh, Haryana, Punjab, Uttarakhand, Madhya Pradesh, Bihar, and Rajasthan. As of September 30, 2024, revenue from operations was ₹3,050.10 lakhs, with net profit of ₹329.28 lakhs.
Readymade Garment IndustryKids Wear / Childcare ProductsRetail (D2C and B2C)Fashion and Apparel
Objects of the Issue
- Working capital requirement ₹1,800.00 lakhs p.25
- Expenditure for opening new stores ₹535.40 lakhs p.25
- General corporate purposes p.25
- Working capital requirements ₹1,800.00 lakhs p.75
- Expenditure for opening new stores ₹535.40 lakhs p.75
- General corporate purposes p.75
- Not specified in this document section
Issue Structure
- Total Issue
- Up to 26,04,000 Equity Shares aggregating to ₹[●] Lakhs
- Fresh Issue
- Up to 26,04,000 Equity Shares of face value ₹10/- each aggregating up to ₹[●] Lakhs
- Offer for Sale
- NA
- Price Band
- Floor Price ₹[●] and Cap Price ₹[●]
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter; subject to a minimum allotment of [●] Equity Shares to the successful Applicants
- Face Value
- ₹10/- each
Business Model
The company earns revenue through D2C (direct-to-consumer) and B2C models, operating retail outlets and online channels selling kids wear products including apparel (clothing, footwear, accessories), consumables (diapering, bath and skin care, baby food), toys and games, hard goods (prams, feeding bottles, nursery, safety gear) and other products for children aged 0-12 years.
Business Segments
Operation of retail outlets selling kids wear including apparel (clothing, footwear, accessories), consumables (diapering, bath and skin care, baby food), toys and games, hard goods (prams, feeding bottles, nursery safety gear) and other products for children aged 0-12 years
Direct-to-consumer (D2C) online sales of kids wear and related products
Retail stores selling kids' apparel, footwear, and accessories under the Purple United brand through physical locations in malls and high street locations
Direct-to-consumer sales through online marketplaces and the company's website
Historical segment involving distribution through key accounts and other B2B channels, which the company is reducing focus on
Retail stores operated under the brand name 'Purple United Kids' providing premium in-store experience with standardized service and product offerings
Multi-brand outlets, shop-in-shops, and direct sales to distributors who resell to local and regional retail stores
Direct-to-consumer sales through own website (purpleunited.in) and third-party online marketplaces
Kids' clothing including t-shirts, shirts, jackets, sweaters, dresses, dungarees, rompers, partywear, denim, lowers, trousers, jeggings, skirts
Kids' footwear including shoes, ballerinas, slides, moulds, flipflops, sandals designed for comfort and proper foot development
Complementary products including caps, sling bags, socks, and hard goods such as strollers
Design, development, sourcing, marketing, and selling of premium apparel and footwear for infants (0-1 year), toddlers (2-6 years), and older children (7-14 years) across retail, e-commerce, and wholesale channels
Design, development, sourcing, and sale of licensed footwear products under Disney and Mattel characters
Apparel and footwear for infants aged 0 to 1 year
Apparel and footwear for toddlers aged 2 to 6 years
Apparel and footwear for older kids aged 7 to 14 years
Wide range of accessories and hard goods such as strollers
SWOT Analysis
Strengths
- • Exclusive focus on kids wear with lab-tested products designed for sensitive skin(p.24)
- • Operating in large Indian textile and apparel industry with strong employment base(p.24)
- • Strong revenue growth trajectory with 66.47% growth in FY 2023-24(p.32)
- • Experienced management with established track record(p.85)
- • Proven retail expansion capability(p.85)
- • Strong financial growth trajectory(p.85)
- • High profitability margins(p.88)
- • Significant revenue growth(p.88)
- • Strong return on net worth(p.86)
- • Design-focused product innovation(p.85)
- • Well-positioned in fast-growing kids' apparel market with 26% of population aged 0-14(p.132)
- • Extensive product portfolio of ~650 styles across age categories and segments(p.132)
- • Strong brand recall and equity built over years in kids' apparel and footwear(p.133)
- • Experienced promoter with 25+ years in apparel and footwear industry(p.133)
- • Strong financial performance with 37.32% CAGR in net sales from FY 2022 to FY 2024(p.133)
- • Control over distribution through in-house design team and multiple manufacturing partners(p.132)
- • Omni-channel distribution network of 24 EBOs, key accounts, distributors and online platforms(p.126)
- • Disney and Mattel licensing partnerships providing brand recognition and marketing support(p.154)
- • Established multi-channel distribution network covering exclusive brand outlets, shop-in-shops, and major e-commerce platforms(p.151)
- • Experienced management team with over 20 years in retail, distribution, and brand management(p.161)
- • Strong brand positioning focused on premium quality and child safety with lab-tested products(p.151)
- • Pan-India distribution reach with 14 exclusive brand outlets established by 2023(p.153)
- • Established premium kids' fashion brand with multi-brand portfolio(p.230)
- • Diversified distribution network across channels(p.230)
- • Strong revenue growth trajectory(p.235)
- • Improving profitability and margins(p.235)
- • Enhanced operational efficiency and cost management(p.235)
- • Positive net worth and profitability track record(p.252)
Weaknesses
- • Retail outlet business concentrated in National Capital Region (NCR) only(p.31)
- • High level of trade receivables with significant outstanding balances(p.33)
- • Significant working capital requirements necessitating substantial financing(p.31)
- • Past delays in statutory compliance filings and tax returns(p.32)
- • Dependence on experienced management team and key personnel(p.36)
- • Rented premises for registered office, corporate office, warehouse and retail outlets(p.38)
- • High debt burden(p.88)
- • Significant short-term borrowing requirements(p.50)
- • Concentrated promoter ownership(p.69)
- • Dependence on store expansion for growth(p.78)
- • Rising working capital requirements(p.76)
- • High dependence on distributor channel for 69.54% of FY 2024 revenue(p.130)
- • Revenue volatility with significant decline in online sales from FY 2024 to September 2024(p.131)
- • Rising working capital requirements with 323.25 days in FY 2024(p.127)
- • Outsourced manufacturing model creates dependency on contract manufacturers for product quality(p.133)
- • Limited retail presence with only 24 EBOs across India as of November 2024(p.129)
- • Heavy dependence on licensing royalties affecting profitability, ranging 7.28% to 12.63% of licensed product revenue(p.154)
- • Significant short-term borrowings representing over 62% of total liabilities as of September 30, 2024(p.191)
- • Promoters have provided extensive personal guarantees across 37 different financial institutions, creating concentrated personal liability risk(p.156)
- • Limited product category focus on kids' apparel and footwear, concentrated on single customer segment(p.151)
- • High inventory to sales ratio with inventory increasing to Rs. 1,961.15 lakhs as of September 30, 2024(p.191)
- • High debt-to-equity ratio(p.227)
- • Elevated finance costs burden(p.235)
- • Litigation involving promoter(p.243)
- • Material litigation by promoter with significant exposure(p.244)
- • Regulatory compliance gap with missing shop licenses(p.250)
- • Significant dependence on director financing(p.242)
Opportunities
- • Expansion into new geographical regions beyond NCR(p.31)
- • Opening of new stores across India as per expansion strategy(p.25)
- • Growing Indian kids wear market driven by increasing consumer spending(p.24)
- • Potential diversification beyond kids clothing into other segments(p.37)
- • Planned store expansion(p.75)
- • B2C/D2C channel growth(p.77)
- • Listing on EMERGE platform benefits(p.75)
- • India's strong economic growth trajectory(p.97)
- • Recovery in private consumption(p.97)
- • Diversified revenue streams across channels(p.85)
- • Expansion of EBO network to approximately 33 stores in FY 2025(p.133)
- • Growing e-commerce penetration with opportunity to increase online sales(p.133)
- • Indian kids' apparel market expected CAGR of 4.4% between FY 2023 and 2030(p.116)
- • Rising disposable incomes with middle class expected to reach 547 million by 2025(p.110)
- • Government support through PLI scheme and PM MITRA mega textile parks(p.117)
- • Urbanization driving preference for branded, ready-to-wear garments with 40% urban population by 2030(p.112)
- • High projected growth in kids' category with expected CAGR of 32%(p.151)
- • Expansion of exclusive brand outlets and retail presence across India(p.151)
- • Leveraging licensed character footwear to tap into global fashion trends and consumer preferences(p.154)
- • Exclusive focus on Indian market with potential to scale operations nationwide(p.151)
- • Expand product range beyond apparel and footwear into accessories and hard goods(p.151)
- • Growing kids' apparel market with favorable CAGR(p.230)
- • E-commerce expansion potential(p.230)
- • Domestic market focus with scalability(p.230)
- • Potential for store expansion(p.235)
- • Product portfolio diversification and brand extensions(p.230)
Threats
- • Intense competition from larger branded companies with greater financial resources(p.37)
- • Risks from changing consumer preferences and industry requirements(p.42)
- • Economic slowdown or recession adversely affecting Indian economy and consumer spending(p.45)
- • Interest rate fluctuations increasing cost of debt financing(p.38)
- • Natural disasters, pandemics, and acts of violence disrupting operations(p.44)
- • Regulatory and compliance changes increasing operational costs(p.44)
- • Industry malpractices by competitors affecting market perception and trust(p.45)
- • Regulatory and tax policy changes(p.46)
- • Investor capital gains taxation(p.46)
- • Listing approval delays or failure(p.46)
- • Foreign investment restrictions(p.47)
- • Macroeconomic and market volatility(p.47)
- • Future capital dilution risks(p.47)
- • Intense competition from organized and unorganized players in kids' apparel market(p.134)
- • Domestic textile industry facing significant downturn with sluggish demand(p.103)
- • Global garment industry contracting with predictions of 25-30% decline in US imports(p.107)
- • Freight costs increased 40% due to Red Sea disruptions impacting operational costs(p.103)
- • Reliance on imported man-made fibres particularly spandex from China, Vietnam, Taiwan(p.103)
- • Stiff competition from Bangladesh and Vietnam with Bangladesh exports surging past USD 44 billion(p.106)
- • Risk of termination or non-renewal of Disney and Mattel licensing agreements critical to revenue(p.154)
- • Intense competition from established children's apparel and footwear brands in Indian market(p.151)
- • Regulatory compliance requirements under multiple environmental and safety laws including Air Act, Noise Regulation Rules, and Hazardous Waste Rules(p.150)
- • Dependency on fashion trends and consumer preferences in competitive kids' wear segment(p.151)
- • Reliance on multiple NBFC and bank relationships for working capital financing with interest costs(p.193)
- • Intense competition in kids' apparel sector(p.240)
- • Economic and regulatory sensitivity(p.231)
- • Supply chain and vendor dependence risks(p.231)
- • Fashion industry cyclicality(p.231)
- • Technology disruption and rapid market changes(p.231)
- • Employee retention and talent acquisition risks(p.231)
- • Regulatory compliance and licensing challenges(p.231)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Jatinder Dev Seth | Promoter/Managing Director | 57.10% | — |
| Mrs. Bhawna Seth | Promoter/Whole-time Director | 14.27% | — |
| Mr. Manish Dev Seth | Promoter | — | — |
| Mrs. Monica Seth | Promoter | — | — |
| InnovationM Mobile and Web Technologies Private Limited | Promoter Group | 16.17% | — |
| Mr. Jatinder Dev Seth | Promoter and Managing Director | 57.10% | 41.62% |
| Mrs. Bhawna Seth | Promoter and Whole-Time Director | 14.27% | 10.41% |
| InnovationM Mobile and Web Technologies Private Limited | Promoter | 16.17% | 11.79% |
| Jatinder Dev Seth | Promoter/Promoter Group | — | — |
| Bhawna Seth | Promoter/Promoter Group | — | — |
| Manish Dev Seth | Promoter/Promoter Group | — | — |
| Monica Seth | Promoter/Promoter Group | — | — |
| Jatinder Dev Seth | Promoter | 57.10% | 41.62% |
| Bhawna Seth | Promoter | 14.27% | 10.41% |
| Manish Dev Seth | Promoter | — | — |
| Monica Seth | Promoter | — | — |
| InnovationM Mobile and Web Technologies Private Limited | Promoter Group | 16.17% | — |
| Jatinder Dev Seth | Promoter | — | — |
| InnovationM Mobile & Web Technologies P Ltd | Promoter | — | — |
Leadership
Jatinder Dev Seth · Managing Director
Bhawna Seth · Whole-time Director
Naresh Kumar · Chief Financial Officer
Vishnu Kumar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Purple United Sales IPO FAQs
What is the lot size of Purple United Sales IPO?
The minimum lot size of Purple United Sales IPO is 1,000 shares. One lot costs ₹1,26,000 at the cut-off price.
When does Purple United Sales IPO open and close?
Purple United Sales IPO opened for subscription on 11 Dec 2024 and closed on 13 Dec 2024.
What is the listing date of Purple United Sales IPO?
Purple United Sales IPO listed on 18 Dec 2024.