Purple United Sales IPO sees 148.9x subscription, shares to debut on December 18

Purple United Sales IPO

Fashion brand Purple United Sales' initial public offering saw strong demand, getting subscribed 148.9 times on the last day of bidding, December 13. The issue was opened on December 11.

Investors bought 27.73 crore equity shares compared to the offer size 18.63 lakh shares through 1.42 lakh applications, the subscription data on the NSE showed.

Non-institutional investors' reserved portion was subscribed 270 times and retail investors bought 155.37 times their allotted quota, while the part set aside for qualified institutional buyers was booked 86.2 times.

Trading in Purple United Sales shares will commence on the NSE Emerge, effective December 18. Given the healthy subscription numbers, IPO shares were available at around massive 40 percent premium over the upper price band, in the grey market (an unofficial market for trading in IPO shares till the listing), market observers said.

The New Delhi-based company approached capital markets to raise Rs 32.81 crore through IPO of 26.04 lakh shares at the upper end of price band of Rs 121-126 per share.

The firm will spend IPO proceeds for opening new stores, working capital requirements, and general corporate purposes.

Founded in 2014 by Jatinder Dev Seth, Purple United Sales caters to kids wear segment through its distribution network of 24 exclusive brand outlets (EBOs) under the brand name 'Purple United Kids' across 17 cities in India and 14 shop-in-shops in key accounts and 24 distributors across Pan India. It also operates business through major e-commerce platforms such as Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch, AJJIO and more.