Purple Style Labs Limited disclosed a board-approved investment of ₹420 crores in its wholly-owned subsidiary PSL Retail Private Limited through a rights issue. The investment represents utilization of net proceeds from the company's recent Initial Public Offering (IPO).
Board Meeting Details
The Board of Directors meeting was held on September 15, 2026, from 03:00 p.m. to 03:45 p.m., where the investment was approved.
Investment Details
- Target Entity: PSL Retail Private Limited (PSLR)
- Investment Amount: ₹420 crores
- Instrument: Equity shares acquisition through rights issue
- Share Details: 42 crore equity shares with face value of ₹10 each at issue price of ₹10 each
- Current Ownership: 100% (will remain unchanged post-investment)
- Consideration Type: Cash
Subsidiary Information
PSL Retail Private Limited is a wholly-owned subsidiary and Material Subsidiary incorporated on August 29, 2019. The company operates a luxury omni-channel fashion platform under the brand name "Pernia's Pop-Up Shop" retailing womenswear, menswear, jewelry, accessories, and kidswear through physical experience centers and online platform.
Financial Information of PSLR
- Paid-up share capital (as of disclosure date): ₹280,01,00,900
- Revenue from Operations:
- FY 2023-24: ₹4,951.92 million
- FY 2024-25: ₹4,858.67 million
- FY 2025-26: ₹5,557.38 million
Transaction Purpose
The investment fulfills objects stated in the IPO prospectus dated September 02, 2026, specifically:
- Investment in PSLR for expenditure towards lease liabilities of experience centers and back-end offices in India
- General corporate purposes of the company and its subsidiaries
The proceeds will be utilized by PSLR towards lease liabilities of its experience centers and back-end offices in India, and for general corporate purposes.
Related Party Transaction Aspects
PSLR is a related party under Section 2(76) of the Companies Act, 2013. The transaction is conducted on an arm's length basis. Promoter interests include:
- Mr. Abhishek Agarwal (Promoter, Whole-time Director and CEO) serves as director on PSLR board
- Ms. Priyanka Agarwal and Ms. Payal Agarwal (immediate relatives of Promoter) are shareholders of the company
Regulatory Approvals
No governmental or regulatory approvals are required for this acquisition.
Transaction Timeline
The acquisition is to be completed during the period from September 19, 2026, to September 25, 2026, as per the offer letter for rights issue dated September 15, 2026.
Industry Classification
The target entity belongs to the Commercial industry.