Severefinancialpage 29
Negative net worth with debt service collapse
Total equity (₹ million) (522.78) ... Debt service coverage ratio 0.08 ... Total borrowings to total equity ratio (C = A/B) (in times) (7.10)
ListedMainboardPERNIASPOP
Purple Style Labs IPO
Purple Style Labs IPO is a mainboard IPO raising ₹680 Cr at ₹546 – ₹575 a share. It listed on 7 Sept 2026 at ₹535, −7.0% against its issue price of ₹575, and trades at ₹576 today (+0.1% since issue). It was subscribed 1.29× in total.
₹575
Issue price
₹576
Price now
+0.1%
Since issue price
7 Sept 2026
Listed on
1.29×Subscribed (final) · all exchanges
Just covered — bids slightly exceed the shares on offer
populated partly populated we hold nothing here — the tab says why
What the prospectus says could go wrong
Read from the 448-page prospectus. Indian prospectuses list hundreds of risk factors, most of them generic boilerplate. These are the 14 specific to this company; 281 generic ones were skipped. Every one is quoted verbatim with its page, so you can check it against the document.
Severefinancialpage 21
Persistent losses and deeply negative retained earnings
We have in the past incurred losses, negative retained earnings amounting to ₹7,102.86 million as of March 31, 2026 and negative net cash flows from operating activities.
Severelitigationpage 28
IP dispute over core Pernia's Pop-Up Shop brand
we received a notice dated January 8, 2026 ('Notice') from Pernia Qureshi and the Seller, seeking to terminate the License Agreement on account of alleged breach of our obligations under the IP Agreements
Severefinancialpage 22
Three consecutive years of negative operating cash flow
Net cash used in operating activities (348.95) (451.85) (313.44)
Severefinancialpage 34
Repeated cash losses and audit trail deficiencies
The Company has incurred cash losses (including impact of share based payment) in the current financial year and in the immediately preceding financial year amounting to INR 606.14 million and INR 903.08 million respectively.
Severefinancialpage 32
Finance costs more than doubled from expansion
Our finance costs increased from ₹407.57 million in Fiscal 2024 to ₹529.73 million in Fiscal 2025 and further to ₹970.87 million in Fiscal 2026… due to increase in interest on lease liabilities and borrowings on account of expansion to Large Format Experience Centers.
Highlitigationpage 37
Non-Executive Directors listed as CIBIL defaulters
The names of our Non-Executive Directors, Rahul Garg, and Harminder Sahni, appear in the list of the CIBIL defaulter database… Aggregate amount involved ₹760.30 million
Highconcentrationpage 27
Designer Brand reliance on annual non-exclusive contracts
our top 10 Designer Brands contributed 30.24%, 26.54% and 23.44% of our Total PPUS GMV in Fiscals 2026, 2025 and 2024 … we enter into agreements with our Designer Brands typically for one year
Highconcentrationpage 22
Heavy womenswear and Indian wedding wear concentration
We derive a substantial portion of Total PPUS GMV from the womenswear category (77.70%, 75.66% and 77.88% of our Total PPUS GMV in Fiscals 2026, 2025 and 2024)
Highconcentrationpage 23
Experience Center concentration in Mumbai and Delhi
Mumbai 2,050.40 28.42% ... Delhi 1,655.12 22.94% ... we derive a significant portion of our revenues from our Experience Centers located in Delhi and Mumbai in India
Highoperationalpage 22
UK subsidiary impairment and overseas expansion losses
we have realized impairment losses on the investment made by us in our Subsidiary, Purple Style Labs UK Limited. As a result, any decrease or delay in generating additional revenue from the offshore subsidiaries could result in substantial operating losses
Highmarketpage 26
US tariff exposure amid trade policy uncertainty
the United States has implemented tariffs on several major trading partners, including India... an additional 25.0% tariff was imposed by the United States on India... the reciprocal tariff on punitive duty was reduced from 25.0% to 18.0%. Despite the recent U.S. Supreme Court ruling striking down emergency tariff powers, some uncertainty remains
Highoperationalpage 38
Designer brand mix optimization shrinking customer base
our focus on optimizing the designer brand mix has also led to a decrease in the number of customers… This could lead to a decline in overall customer numbers and reduce the frequency of purchases
Severeoperationalpage 41
High employee attrition rate around 46 percent
attrition rate of permanent employees was 46.13%, 41.52% and 46.15% for Fiscals 2026, 2025 and 2024, respectively
Extracted from the issuer’s own prospectus and ranked by how specific and material each risk is to this company. Severity is our assessment of the disclosure, not a prediction — and nothing here is a recommendation to apply to this issue.
What’s in court
The issuer’s own summary of outstanding legal proceedings — SEBI requires this table in every prospectus. Counts and amounts are as disclosed.
| Against | Criminal | Tax | Other material | Amount at stake |
|---|---|---|---|---|
| The company | 0 | 3 | 3 | ₹0.5 Cr |
| Promoters | 1 | 0 | 0 | — |
| Directors | 5 | 4 | 5 | ₹57 Cr |
| Subsidiaries | 3 | 4 | 3 | ₹4.2 Cr |
| Group companies | 0 | 0 | 0 | — |
case₹14,809 Crpage 355
FRL Resolution Professional interim application against FRL and its directors including Rahul Garg before NCLT Mumbai under sections 66(2), 67 and 60(5) of IBC - total ₹148,094.00 million involved in the resolution process (individual amount against Rahul Garg unascertainable)
case₹43 Crpage 360
Rahul Garg TDS prosecution notice from CIT TDS-1 Mumbai under section 279(1) IT Act for AY 2021-2022 - ₹427.72 million TDS deducted by FRL but not deposited; Rahul Garg treated as Principal Officer under section 2(35) for prosecution under sections 276B/276BB read with 278B
case₹19 Crpage 356
FSCSL Resolution Professional application under section 66 of IBC against directors including Rahul Garg before NCLT Mumbai - related party transactions of ₹194.24 million during FY2019, contribution sought from respondents under section 66(2)
case₹12 Crpage 356
FRL liquidator interlocutory application against suspended directors including Rahul Garg before NCLT Mumbai under section 45 IBC - movable fixed assets (aggregate net book value ₹135.20 million) sold for ₹11.00 million, alleged wrongful loss ₹124.20 million
case₹2.7 Crpage 359
PSL Retail GST show cause notice from Sales Tax Officer Class II Delhi under section 73 of Delhi GST Act - alleged deficiency in GSTR-3B and GSTR-2A for April 2021 to January 2022, claim amount ₹26.90 million
All amounts converted from ₹ million to ₹ crore (1 crore = 10 million). The tax-claims summary table on p359 is the only party-wise aggregate; civil/regulatory/criminal matter amounts are stated individually and not aggregated in the document. Directors' direct-tax aggregate of ₹566.06 million comprises ₹559.13 million across 3 TDS prosecution notices against Rahul Garg (₹87.11m + ₹44.30m + ₹427.72m) and ₹6.93 million in 1 matter against Harminder Sahni. The criminal matter before CJM Lucknow (LM Act) involving PSL Retail and Abhishek Agarwal is a single proceeding referenced under Promoter, Director, and Subsidiary. PSL Retail also filed 8 theft FIRs aggregating ₹1.30 million. Senior Management's Abhishek Kothari filed 1 FIR for personal mobile-phone theft — not captured in standard buckets.. Outstanding means unresolved — a listed case is an exposure, not a verdict.
Source documents
What the issuer and the exchanges published. Everything else on this tab is read out of these.
Prospectus on SEBI ↗
The full prospectus — business, financials, risk factors and litigation.
Anchor investor allocation ↗
Which institutions were allotted shares before bidding opened, and how many.
Bidding centres ↗
Where physical applications could be submitted.
Basis of issue price (peer ratios) ↗
The issuer's own "basis of issue price": the earnings multiples it is asking for, and the peer companies it chose to compare itself against.
Red Herring Prospectus ↗
The full prospectus — business, financials, risk factors and litigation.