Purple United Sales IPO: Overview, Date, Price, Allotment & GMP

Purple United Sales IPO-Complete Overview

Purple United Sales IPO under the SME IPO category is a book-built issue of Rs.32.81 crore by Purple United Sales Limited, incorporated in 2014. Purple United is a children's fashion brand of clothing, shoes, and accessories for all ages. 

Purple United's flagship offering, Purple United Kids, is for children aged 0 to 14 years with products that have been laboratory-tested, made from premium-grade raw materials, bright colors, and designs to suit all occasions. The company designs, develops, sources, markets, and distributes infant (0 to 1 year), toddler (2 to 6 years), and kids (7 to 14 years) clothing and footwear. The company showcases a wide assortment of accessories and hardware range such as strollers.

 

Purple United operates primarily in India, with 17 exclusive shops (or "EBOs") spread across five states and ten cities in India; with 20 shop-in-shop locations in the most famous retail chains, Purple United Kids is also available online via its website, mobile app, and major e-commerce platforms such as Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch, AJJIO, to name a few. Furthermore, the company works with 44 retailers across the entire country.

The products of the company include t-shirts, shirts, jackets, pullovers, apparel sets, dungarees, rompers, party wear, dresses, denim, trousers, jeggings, skirts, shoes, ballerinas, mules, molds, flipflops, sandals, caps, tote bags, socks and strollers among others.

Purple United Sales IPO Overview

This Purple United Sales IPO date is 11 December 2024, and its ‘initial public offering’ will end on 13 December 2024. 

The Rs.32.81 crore new SME IPO comprises a wholly fresh issue of 26.04 lac Shares.

This upcoming IPO date is on December 11, 2024. Purple United Sales IPO Price is Rs.121 to Rs.126 for each Share. 

The expected IPO listing date is Wednesday, 18 December 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue grew by 67% and PAT increased by 223% during FYs ending 31 March 2024 and 31 March 202

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Sales-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To fulfill the requirements for working capital.

• The cost of starting new stores.

• General corporate purposes.

 

Peers of Purple United Sales IPO Ltd.

 

Note:- The basic EPS of the peers is for the financial year ended on 31 March 2024.

Evaluation

The Purple United Sales Limited IPO share price is Rs.121 to Rs.126 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.6.87 from the last year, the resulting P/E ratio is 18.34x.

Considering the weighted EPS of Rs.4.57 for the last three years, the P/E ratio is 27.57x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 34.97x.

In simple words, the P/E ratio of this IPO (18.34x), compared with the industry’s average P/E of 34.97x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths

• In a good position to exploit the rapidly growing children's products market.

• Wide product portfolio covering quality products that provide a sound value proposition.

• Robust backend with design capabilities, sharp focus on the 3Fs (fun, fashion, and functionality), and controlling distribution channels.

• Well-experienced promoter and management team.

• Excellent financial performance.

 

IPO’s Weaknesses

• Market Concentration: Operations are almost entirely restricted to specific geographies.

• Competition: Competes with well-known companies and unorganized players.

• Economic Sensitivity: Products in this particular segment are discretionary.

• Regulatory Compliance: Compliance with changing regulatory norms.

 

Purple United Sales IPO GMP

Purple United IPO GMP today is Rs.0 as of 05 December 2024. The expected Purple United Sales IPO listing price is Rs.126 when writing this information.
 

IPO Timetable (Tentative)

The IPO opening date is from December 11 to December 13, 2024, with allotment on December 16, refund initiation on December 17, and listing on December 18, 2024.

 

Purple United Sales IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 2,604,000 Shares (Rs.32.81 Cr).

Purple United Sales IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1000 Shares) amounting to Rs.1,26,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2000 Shares) amounting to Rs.2,52,000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Purple United Sales IPO Ltd.

• MR. Jatinder Dev Seth

• MRS. Bhawana Seth

• Innovation Mobile

• Web Technologies Private Limited

• Manish Dev Seth and Monica Seth
  
  

 

IPO Lead Managers

• Expert Global Consultants Private Limited.
  
  

Dividend Policy

The company has not paid dividends since its incorporation.

Conclusion

Purple United Sales IPO offers an opportunity to invest in a growing children's fashion brand with strong financial growth and market presence. The IPO price appears reasonable compared to industry peers, but geographic concentration and competition are key risks. With plans to expand stores and improve operations, a thorough evaluation is essential before investing.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP

 

DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

Click Here To Stay Updated With The Upcoming IPOs.

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.Hope you loved the IPO analysis. Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.