Purple United Sales Limited IPO

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Purple United Sales Private Limited (“Purple United”) was founded in 2014 with a vision to become a leading player in the kids’ apparel, footwear, and accessories market in India. From its humble beginnings, the company has grown into a premium fashion brand catering exclusively to children of all ages. Its ethos revolves around celebrating childhood by emphasizing comfort, safety, sustainability, and style.

Core Offerings

Purple United provides a wide range of kids’ apparel, footwear, and accessories for children from infancy to 14 years.
i. Apparel                                         ii. Footwear                     iii. Accessories and Hard Goods
iv. Sustainability Focus

Target Market

Purple United caters exclusively to the Indian kids’ wear segment, focusing on mindful categorization of products across different age groups: Infants (0–1 year), Toddlers (2–6 years), Older Kids (7–14 years)

The brand emphasizes the 3Fs: Fun, Fashion, and Functionality, to provide stylish and comfortable options that simplify parenting while ensuring safety and convenience.

Distribution Channels

Purple United has developed an extensive omni-channel distribution network, including:
i. 17 Exclusive Brand Outlets (EBOs) across India.
ii. Multiple shop-in-shops within leading retail stores.
iii. A strong online presence through:
a. Their official website and mobile app.
b. Partnerships with major e-commerce platforms like Myntra, Amazon, Flipkart, FirstCry, Nykaa, Hopscotch, AJIO, and more.

This diverse distribution strategy ensures high purchase frequency and repeat customer engagement.

Purple United continues to strive for excellence and growth, leveraging its innovative designs, robust distribution network, and commitment to sustainability to deliver exceptional experiences to its customers. With a mission to celebrate childhood, the company remains focused on providing safe, stylish, and functional products for kids while simplifying the parenting journey.

Objects of the Purple United Sales Limited IPO:

The Company intend to utilize the Net Proceeds of the Issue to meet the following objects: i. Expenditure for opening new stores ii. Working capital requirements; iii. General corporate purposes
DRHP of Purple United Sales Limited IPO
RHP of Purple United Sales Limited IPO

Purple United Sales Limited IPO Details:

Open Date: Dec 11 2024
Close Date: Dec 13 2024
Total Shares: 2,604,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 32.81 Cr.
Lot Size: 1000 Shares
Issue Price: ₹ 121 - 126 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 18 2024

Promoters And Management:

Mr. Jatinder Dev Seth, aged 52, is the Promoter, Chairman, and Managing Director of the company, serving as a director since its inception. With a BE in Engineering and an MBA in Finance, he brings over 20 years of expertise in sales, distribution, retail, and e-commerce. Mr. Seth has played a pivotal role in launching international brands like Puma, Nike, adidas, Hush Puppies, and Wilson in the region, combining technical acumen with financial proficiency. Mrs. Bhawna Seth, aged 49, is the Promoter and Whole-Time Director of the company, serving on the Board since December 14, 2015. With a Master of Arts in English and extensive expertise in creative merchandising, she has a unique blend of qualifications and experience. Previously, she successfully led a fashion institute, enhancing her understanding of consumer behavior, creative innovation, and team leadership. Her expertise in children’s fashion trends allows her to design collections that seamlessly blend style and functionality, driving the organization’s creative and sales direction. Mr. Niraj Rajpal, aged 52, is a Non-Executive Director on the Board of the Company. A seasoned enterprise architect, he holds a Bachelor's degree in Engineering from Pune University and a PG Diploma in International Business from IIFT. With over 18 years of experience, he specializes in architecting and managing data centers, private cloud infrastructures, and public cloud platforms such as Azure, GCP, and AWS. Mr. Rajpal has held leadership roles at Perot Systems, Dell, and NTT Data, demonstrating expertise in healthcare, logistics, manufacturing, and IT consulting.

Financials of Purple United Sales Limited IPO:

In Cr.
Particulars 30th Sep 24 FY 24 FY 23 FY22
Revenue 30.50 42.77 25.69 16.52
Revenue Growth 66.48% 55.51% 14.05%
EBITDA 7.13 9.87 3.86 2.40
EBITDA Margins 23.38% 23.08% 15.01% 14.54%
PAT 3.29 4.82 1.49 1.77
PAT Margins 10.80% 11.26% 5.81% 10.72%
CFOA (0.37) 0.88 3.55 1.05
Cash Conversion Ratio (CFOA/EBITDA) Negative 8.92% 91.97% 43.75%

Comparison With Peers:

Companies Revenue EBITDA PAT D/E Ratio MCap P/E
Purple United Sales    (FY 2024) 42.77 Cr. 9.87 Cr. (23.08%) 4.82 Cr. (11.26%) 1.42 121 Cr. 25.10
S.P. Apparels Limited (TTM) 1,184 Cr. 158 Cr.   (13%) 86 Cr. (7.26%) 0.41 2,316 Cr. 26.90
Iris Clothing Limited (TTM) 138 Cr. 26 Cr. (19%) 12 Cr. (8.70%) 0.62 545 Cr. 46.40
Karnika Industries Limited (TTM) 160 Cr. 24 Cr. (15%) 16 Cr. (10%) 0.73 434 Cr. 27

Recommendation on Purple United Sales Limited IPO:

Review and Recommendation of Purple United Sales Limited IPO by team IZ is 4/10.

Lead Manager of Purple United Sales Limited IPO:

  1. Expert Global Consultants Private Limited

Registrar of Purple United Sales Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Purple United Sales Limited Khasra No. 55/14 & 55/15, Near Rani Khera Road, Mundka, West Delhi, New Delhi, Delhi, India, 11004 Phone: +91 9667792635 Email: jdseth@purpleuni Website: https://purpleunited.in/

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