Purple United Sales shares make bumper debut, list at 58% premium over IPO price on NSE SME

Established in 2014, the company is a fashion brand specializing in clothing, footwear, and accessories for children of all ages.

Shares of Purple United Sales made a robust start on its stock market debut on December 18, listing at Rs 199, commanding a massive premium of 58 percent over the issue price of Rs 126 per share on the NSE SME platform.

The listing gains, however, miss grey market estimates where shares were trading at a premium of 64 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

The Rs 32.8-crore public offer, which is purely a fresh issue, received strong investor interest as the IPO was subscribed 160 times. Non-institutional investors were at the forefront, buying 270 times the allotted quota followed by retail investors who purchased 155 times the portion reserved for them. QIBs or qualified institutional buyers mopped 86 times the portion reserved.

The company plans to utilize the net proceeds from the issue for various purposes, including the expenditure for opening new stores, meeting working capital requirements, and funding general corporate purposes.

Established in 2014, the company is a fashion brand specializing in clothing, footwear, and accessories for children of all ages. The company’s flagship line, "Purple United Kids," caters to children up to 14 years old, offering laboratory-tested products. The company handles the design, development, sourcing, marketing, and distribution of apparel and footwear for infants (0-1 year), toddlers (2-6 years), and older children (7-14 years).