The ₹680 crore IPO of Purple Style Labs, the operator of 'Pernia's Pop-Up Shop', opens for subscription today amidst a legal challenge from founder Pernia Qureshi regarding brand rights. Investors are evaluating this alongside the company's financial results, which include widening losses, a negative net worth, and a significant increase in debt.
Purple Style Labs (PSL) opened its ₹680 crore initial public offering (IPO) for subscription today, August 31, 2026. The company, which operates the premium fashion retail platform 'Pernia's Pop-Up Shop', enters the public market while managing a legal dispute with its founder, Pernia Qureshi, regarding the scope of intellectual property rights over the 'Pernia' brand name.
The core of the dispute involves the 2018 asset purchase agreement. Qureshi has issued a legal notice contending that the rights sold to the company were limited to specific entities like 'Pernia’s Pop-Up Shop' and 'PPUS', rather than the 'Pernia' name itself. In contrast, the company maintains that its rights to the 'Pernia' and 'Pernia's' brand names are irrevocable and perpetual. Lead bookrunner Axis Capital issued a revised investor note to clarify the scope of these rights following the legal challenge, which aims to mitigate potential confusion among prospective shareholders.
Beyond the legal friction, investors are focusing on the company's financial health. For the fiscal year ending 2026, Purple Style Labs reported a net loss of ₹285.40 crore on revenue of ₹557.84 crore. The company's balance sheet reflects significant financial pressure, with a negative net worth of ₹52.28 crore. This, combined with persistent operating cash flow deficits over the last three fiscal years, makes the success of the capital raise a critical factor for the firm's future operations.
Another key area for investors to track is the company's debt position. Borrowings have risen sharply, climbing to ₹371.40 crore in FY2026 from ₹112.79 crore in FY2025. This increase in debt, alongside the ongoing litigation, presents a complex picture for those evaluating the firm's long-term sustainability in the competitive luxury fashion retail sector.
The IPO price band is set at ₹546 to ₹575 per share. The subscription window remains open until September 2, 2026, with the shares tentatively scheduled to list on the stock exchanges on September 7, 2026. The primary monitorables for market participants will be the subscription numbers and any further official updates regarding the legal proceedings with the brand's founder.