Purple Style Labs Limited has submitted its Monitoring Agency Report for the quarter ended September 30, 2026 (Q2FY27). The report, issued by CARE Ratings Limited, confirms that the utilization of funds raised from the Initial Public Offer (IPO) was in line with the objects stated in the Prospectus. Key expenditures included general corporate purposes, sales and marketing, and investment in a wholly-owned subsidiary, with no material deviations noted.
Monitoring Agency Report for Q2FY27 Issued
Purple Style Labs Limited has released its Monitoring Agency Report for the quarter ended September 30, 2026, covering the period of Q2FY27. The report, prepared by CARE Ratings Limited, provides an overview of the utilization of the proceeds from the company’s Initial Public Offer (IPO).
Utilization Aligns with Prospectus Objectives
According to the report, the utilization of IPO proceeds during the quarter was found to be in line with the objects detailed in the company’s Prospectus. Funds were routed through designated monitoring accounts. Specifically:
- Investment in Wholly Owned Subsidiary: Rs. 371.13 crore was proposed for lease liabilities of Experience Centers and back-end offices, with no amount utilized during the quarter.
- Sales and Marketing Expenses: Rs. 138.90 crore was allocated. During the quarter, Rs. 1.90 crore was utilized towards digital marketing expenses.
- General Corporate Purposes: Rs. 103.13 crore was earmarked. The report details utilization for repayment of debt to PSL U.S.A. (Rs. 53.00 crore) and PSL Retail Private Limited (Rs. 28.00 crore), as well as salary payments to PSL Retail Private Limited (Rs. 3.40 crore).
- Issue Expenses: Rs. 66.84 crore was allocated. Expenses aggregating Rs. 54.44 crore were incurred during the quarter.
No Material Deviations Observed
The Monitoring Agency confirmed that there were no material deviations in the objects or the amount of utilization. Shareholder approval was not required as no material deviations were observed. Similarly, the means of finance for the disclosed objects have not changed.
Key Financials and Risk Factors
The report also touches upon the financial position, noting that the group’s financial position remained stressed, with continuing losses and negative net worth. However, the financial information in the Prospectus was prepared on a going-concern basis. Improvement in profitability, liquidity, and cash generation remains a key monitorable. The company has also addressed potential risks related to trademarks and legal notices, asserting that the trademarks are owned by the company and that certain notices were frivolous.
Deployment of Unutilized Proceeds
As of September 30, 2026, the total unutilized IPO proceeds amounted to Rs. 539.26 crore. A significant portion of this was invested in fixed deposits (Rs. 528.55 crore), with the remainder held in various bank accounts and monitoring accounts.
Source: BSE
