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Purple United Sales Ltd

Purple United Sales Ltd IPO

Status: Closed

Overview

IPO date

11 Dec 2024 to 13 Dec 2024

Face value

₹ 10 per share

Price

₹ 121 to ₹126 per share

Issue Size

2,604,000 shares
(aggregating up to ₹ 32.81 Cr)

Allotment Date

16 Dec 2024

Listing at

NSE

Issue type

Book Building - SME

Sector

Retail

Objectives of Purple United Sales Ltd IPO

Purple United Sales Ltd IPO Strategy

About Purple United Sales Ltd

Unlock Stock of the Month

T&C*

Strengths vs Risks of Purple United Sales Ltd

Know the pros & cons

Strengths

Experienced Promoters having deep domain knowledge to scale up the business.
Diversified Clientele.
Management team having established track records.
Established track record of successfully opening retail stores.
Efficient business model with track record of delivering financial growth.
Focus on design-led product innovation.

Risks

The company's business from retail outlet is concentrated in the National Capital Region (NCR) only. As of September 30, 2024, revenue from National Capital Region (NCR) constitute Rs. 506.63 Lakhs i.e. 16.61% of its revenue for September 30, 2024. Any adverse impact in this region may adversely affect its business, results of operations and financial condition.
The company proposed expansion plans relating to the opening of new stores are subject to the risk of unanticipated delays in implementation and cost overruns.
The company's business requires significant working capital, necessitating substantial financing. If the company is unable to secure additional debt or equity financing on favourable terms, it may lead to increased interest costs, restrictive covenants, or equity dilution, adversely impacting its financial performance, operations, and the market price of the company Equity Shares.
There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing or returns and deposit of statutory dues with the taxation and other statutory authorities.
The Company has delayed in complying with certain statutory provisions under various laws. Such delayed compliance /lapses may attract certain penalties.
The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.
The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.
In the past Company had delayed in the EPF and GST returns. This may adversely affect the financial performance and regulatory compliance of the company.
The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
Its Directors and Promoters are not involved and may in the future, be involved in certain legal proceedings, which, if determined adversely, may adversely affect its business and financial condition.
The Company has entered into certain related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
The company faces intense competition in its businesses, which may limit its growth and prospects. The Company faces significant competition from other companies.
Its high levels of trade receivables from extending credit to customers, particularly within the past six months, could negatively impact its liquidity and profitability if customers delay or default on payments, despite its credit management efforts.
The company is dependent upon the experience and skill of its management team (including promoters) and a number of KMPs and senior management personnel. If the company is unable to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.
The compant operates in an extremely competitive industry and failures to successfully compete could result in loss of one or more of its significant customers and may adversely affect the company's business.
Its insurance coverage may not be adequate to protect the company against certain losses and this may have a material adverse effect on its business.
If the company is unable to effectively manage or expand its retail network and operations or pursue its growth strategy, the company new stores as well as its existing stores may not achieve the company expected level of profitability which may adversely affect its business prospects, financial condition and results of operations.
The company cannot assure you that its will be able to successfully execute the company's growth strategies, which could affect its business prospects, results of operations and financial condition.
The company requires various statutory and regulatory permits and approvals in the ordinary course of its business, and the company failures to obtain, renew or maintain them in a timely manner may adversely affect its operations.
The company is subject to risks arising from interest rate fluctuations, which could reduce the profitability of its projects and adversely affect the company's business, financial condition and results of operations.
Any failures to maintain quality control systems for the company services could have a material adverse effect on its business, reputation, results of operations and financial condition.
The company does not own registered office, corporate office, warehouse and retail outlets which are currently in use by the Company.
There are certain outstanding legal proceedings pending against the Company and Directors. Any adverse outcome in any of these proceedings may adversely affect its profitability and reputation and may have an adverse effect on its results of operations and financial condition.
Its Promoters have provided guarantees for loans availed by the company, and in the event the same is enforced against its Promoters, it could adversely affect the company's Promoters' ability to manage the affairs of the Company.
The Company has not declared any dividends in the three financial years preceding the date of this Red Herring Prospectus. Its ability to pay dividends in the future will depends upon the company's future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or lead manager or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
Major fraud, lapses of internal control or system failures could adversely impact the Company's business.
Certain sections of this Red Herring Prospectus contain information from the D&B Report which has been prepared exclusively for the Offer and exclusively commissioned and paid for by it. There can be no assurance that such report is complete, and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
Its inability to manage growth could disrupt its business and reduce the company profitability. Its propose to expand its business activities in coming financial years.
If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
The company is subject to restrictive covenants under its financing agreements that could limit the flexibility the company has to manage its business.
Its inability to identify and understand evolving industry trends and consumer preferences, and to provide new services to meet its customers' demands may adversely affect the company's business.
After the completion of the Issue, its Promoters will continue to collectively hold substantial shareholding in the Company.
Certain Promoters and Directors are interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
Any future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups or investments could fails to achieve expected synergies and may disrupt its business and harm the results of operations and the company's financial condition.
There are restrictions on daily/weekly/monthly movements in the price of the Equity Shares, which may adversely affect a shareholders' ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
The price of its Equity Shares may be volatile, or an active trading market for the company's Equity Shares may not develop.
The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

Purple United Sales Ltd Peer Comparison

Understand the company’s industry standing

Purple United Sales Ltd

S P Apparels Ltd

Iris Clothings Ltd

Face Value

Standalone / Consolidated

Standalone

Total Income Rs. Cr.

42.7744

1087.355

121.9211

EPS-Basis

7.84

35.72

1.5

EPS-Diluted

7.84

35.72

1.5

NAV Per Share

26.14

304.32

8.48

P/E-Basic EPS

---

24.45

44.02

P/E-Diluted EPS

---

RONW(%)

27.78

11.74

17.67

Latest NAV Period

---

Latest NAV

---

How to check the allotment status of Purple United Sales Ltd IPO?

Follow the steps

Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 11 Dec 2024 & closes on 13 Dec 2024.

Purple United Sales Limited was originally incorporated as Purple United Sales Private Limited' vide Certificate of Incorporation dated September 16, 2014 issued by Registrar of Companies, Delhi. Subsequently, Company was converted into a Public Limited Company and the name of the Company was changed to Purple United Sales Limited' vide fresh Certificate of Incorporation dated June 20, 2024 by Registrar of Companies, Delhi. The Company is engaged in the business of kids Apparels and footwear and their fashion accessories through their Retail, E-commerce and wholesale business channel partners. The Company is catering kids wear focusing on product categorization for kids of all age and segment. Their extensive distribution network comprises 17 exclusive brand outlets (EBOs), multiple shop-in-shops, and a robust online presence through website, mobile app, and major e-commerce platforms such as Myntra, Amazon, Flipkart, First Cry, Nykaa, Hopscotch and more. In year 2015, the Company began their Offline/Online Distribution in the Apparel & Bags Category. In 2017, it entered through an agreement with Disney and Mattel for kids' footwear. The Company started exclusive brand outlets (EBOs) for Purple United Kids in Delhi in 2019. Through the expansion in retail vertical, it opened store in Punjab in 2020; expanded further in Delhi NCR and Uttarakhand in 2022; established 14 Exclusive Brand Outlets (EBO) stores in 2023. The Company is planning a Initial Public Fresh Issue of 26,04,000 Equity Shares.

Purple United Sales Ltd IPO will close on 13 Dec 2024.

Experienced Promoters having deep domain knowledge to scale up the business.
Diversified Clientele.
Management team having established track records.
Established track record of successfully opening retail stores.
Efficient business model with track record of delivering financial growth.
Focus on design-led product innovation.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Jatinder Dev Seth	4000000	57.1	4000000	41.62
2	Bhawna Seth	1000000	14.27	1000000	10.41
3	Innovationm Mobile & Web Techn	1133000	16.17	1133000	11.79

The company's business from retail outlet is concentrated in the National Capital Region (NCR) only. As of September 30, 2024, revenue from National Capital Region (NCR) constitute Rs. 506.63 Lakhs i.e. 16.61% of its revenue for September 30, 2024. Any adverse impact in this region may adversely affect its business, results of operations and financial condition.
The company proposed expansion plans relating to the opening of new stores are subject to the risk of unanticipated delays in implementation and cost overruns.
The company's business requires significant working capital, necessitating substantial financing. If the company is unable to secure additional debt or equity financing on favourable terms, it may lead to increased interest costs, restrictive covenants, or equity dilution, adversely impacting its financial performance, operations, and the market price of the company Equity Shares.
There are certain discrepancies and non- compliances noticed in some of its financial reporting and/or records relating to filing or returns and deposit of statutory dues with the taxation and other statutory authorities.
The Company has delayed in complying with certain statutory provisions under various laws. Such delayed compliance /lapses may attract certain penalties.
The Company requires significant amounts of working capital for a continued growth. Its inability to meet the company working capital requirements may have an adverse effect on its results of operations.
The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
Its inability to collect receivables and default in payment from the company customers could result in the reduction of its profits and affect the company cash flows.
In the past Company had delayed in the EPF and GST returns. This may adversely affect the financial performance and regulatory compliance of the company.
The company has not made any alternate arrangements for meeting its capital requirements for the Objects of the Issue. Further the company has not identified any alternate source of financing the 'objects of the Issue'. Any shortfall in raising / meeting the same could adversely affect its growth plans, operations and financial performance.
Its Directors and Promoters are not involved and may in the future, be involved in certain legal proceedings, which, if determined adversely, may adversely affect its business and financial condition.
The Company has entered into certain related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest with the equity shareholders.
The company faces intense competition in its businesses, which may limit its growth and prospects. The Company faces significant competition from other companies.
Its high levels of trade receivables from extending credit to customers, particularly within the past six months, could negatively impact its liquidity and profitability if customers delay or default on payments, despite its credit management efforts.
The company is dependent upon the experience and skill of its management team (including promoters) and a number of KMPs and senior management personnel. If the company is unable to attract or retain such qualified personnel, this could adversely affect its business, results of operations and financial condition.
The compant operates in an extremely competitive industry and failures to successfully compete could result in loss of one or more of its significant customers and may adversely affect the company's business.
Its insurance coverage may not be adequate to protect the company against certain losses and this may have a material adverse effect on its business.
If the company is unable to effectively manage or expand its retail network and operations or pursue its growth strategy, the company new stores as well as its existing stores may not achieve the company expected level of profitability which may adversely affect its business prospects, financial condition and results of operations.
The company cannot assure you that its will be able to successfully execute the company's growth strategies, which could affect its business prospects, results of operations and financial condition.
The company requires various statutory and regulatory permits and approvals in the ordinary course of its business, and the company failures to obtain, renew or maintain them in a timely manner may adversely affect its operations.
The company is subject to risks arising from interest rate fluctuations, which could reduce the profitability of its projects and adversely affect the company's business, financial condition and results of operations.
Any failures to maintain quality control systems for the company services could have a material adverse effect on its business, reputation, results of operations and financial condition.
The company does not own registered office, corporate office, warehouse and retail outlets which are currently in use by the Company.
There are certain outstanding legal proceedings pending against the Company and Directors. Any adverse outcome in any of these proceedings may adversely affect its profitability and reputation and may have an adverse effect on its results of operations and financial condition.
Its Promoters have provided guarantees for loans availed by the company, and in the event the same is enforced against its Promoters, it could adversely affect the company's Promoters' ability to manage the affairs of the Company.
The Company has not declared any dividends in the three financial years preceding the date of this Red Herring Prospectus. Its ability to pay dividends in the future will depends upon the company's future earnings, financial condition, cash flows, working capital requirements and capital expenditures.
General economic and market conditions in India and globally could have a material adverse effect on its business, financial condition, cash flows, results of operations and prospects.
The Objects of the Issue for which funds are being raised, are based on its management estimates and any bank or financial institution or lead manager or any independent agency has not appraised the same. The deployment of funds in the project is entirely at its discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
Major fraud, lapses of internal control or system failures could adversely impact the Company's business.
Certain sections of this Red Herring Prospectus contain information from the D&B Report which has been prepared exclusively for the Offer and exclusively commissioned and paid for by it. There can be no assurance that such report is complete, and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
Its inability to manage growth could disrupt its business and reduce the company profitability. Its propose to expand its business activities in coming financial years.
If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
The company is subject to restrictive covenants under its financing agreements that could limit the flexibility the company has to manage its business.
Its inability to identify and understand evolving industry trends and consumer preferences, and to provide new services to meet its customers' demands may adversely affect the company's business.
After the completion of the Issue, its Promoters will continue to collectively hold substantial shareholding in the Company.
Certain Promoters and Directors are interested in the Company's performance in addition to their remuneration and reimbursement of expenses.
Any future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups or investments could fails to achieve expected synergies and may disrupt its business and harm the results of operations and the company's financial condition.
There are restrictions on daily/weekly/monthly movements in the price of the Equity Shares, which may adversely affect a shareholders' ability to sell, or the price at which it can sell, Equity Shares at a particular point in time.
The price of its Equity Shares may be volatile, or an active trading market for the company's Equity Shares may not develop.
The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the issue price and you may not be able to sell your Equity Shares at or above the Issue Price.
In the event there is any delay in the completion of the Issue, there would be a corresponding delay in the completion of the objects / schedule of implementation of this Issue which would in turn affect its revenues and results of operations.

The Issue type of Purple United Sales Ltd is Book Building - SME.

The minimum application for shares of Purple United Sales Ltd is 1000.

The total shares issue of Purple United Sales Ltd is 2604000.

Initial public issue of 26,04,000* equity shares of face value of Rs. 10/- each of Purple United Sales Limited (the "Company" or the "Issuer") for cash at a price of Rs. 126 per equity share including a share premium of Rs. 116 per share (the "Issue Price") aggregating to Rs. 32.81 crores ("The Issue"), of which up to 1,31,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 126 per equity share including a share premium of Rs. 116 per equity share aggregating to Rs. 1.65 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e net issue of 24,73,000 equity shares of face value of Rs. 10/- each at a price of Rs. 126 per equity share aggregating to Rs. 31.16 crores is herein after referred to as the "Net Issue". The issue and the net issue will constitute 27.10 % and 25.73 % respectively of the post issue paid up equity share capital of the company. The face value of equity shares is Rs. 10/- each. The issue price is 12.6 times the face value of the equity shares. *Subject to finalization of the basis of allotment.

Purple United Sales Ltd IPOPURPLEUTED

Objectives of Purple United Sales Ltd IPO

Purple United Sales Ltd IPO Strategy

About Purple United Sales Ltd

Strengths vs Risks of Purple United Sales Ltd

Strengths

Risks

Purple United Sales Ltd Peer Comparison

How to check the allotment status of Purple United Sales Ltd IPO?

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What are the risks of Purple United Sales Ltd?

What is the issue type of Purple United Sales Ltd IPO?

What is the minimum application for shares of Purple United Sales Ltd?

Total shares issue of Purple United Sales Ltd IPO?

What are the objectives of Purple United Sales Ltd IPO?

Purple United Sales Ltd IPO