According to reports from CNBC TV18 and Business Standard, Purple Style Labs has approved a ₹420 crore investment in its wholly owned subsidiary PSL Retail through a rights issue. The investment was approved by the board at its meeting held on September 15, 2026, in accordance with the objects stated in its prospectus dated September 2, 2026. The investment will be funded from net proceeds of the company's initial public offering (IPO), with the company acquiring 42 crore equity shares of PSL Retail at an issue price of ₹10 per share, for a total consideration of ₹420 crore. The transaction will be completed between September 19 and September 25, according to the rights issue offer letter dated September 15.
As reported by CNBC TV18, PSL Retail reported revenue from operations of ₹555.74 crore for the financial year ended March 31, 2026, compared with ₹485.87 crore in FY25 and ₹495.19 crore in FY24. The subsidiary's paid-up share capital stood at ₹280.01 crore as of September 15. The proceeds will be used towards lease liabilities of experience centres and back-end offices in India, as well as for general corporate purposes of Purple Style Labs and its subsidiaries. The subsidiary will deploy the proceeds towards lease liabilities relating to its experience centres and back-end offices, with a portion also used for general corporate purposes.
According to CNBC TV18, PSL Retail is a wholly owned and material subsidiary of Purple Style Labs, incorporated on August 29, 2019. It operates a luxury omnichannel fashion platform under the Pernia's Pop-Up Shop brand, with categories including womenswear, menswear, jewellery, accessories and kidswear. The business operates through physical experience centres in India and an online platform. Purple Style Labs currently holds 100% of PSL Retail and will continue to hold the entire share capital after the proposed investment. As PSL Retail is a wholly owned and material subsidiary, the investment qualifies as a related-party transaction.
As reported by CNBC TV18, shares of Purple Style Labs Ltd ended at ₹534.00, down by ₹36.15, or 6.34%, on the BSE. The transaction is classified as a related-party transaction as PSL Retail is a wholly owned subsidiary of Purple Style Labs. The company stated that the investment is being undertaken on an arm's length basis and in accordance with the objects of its IPO, with no government or regulatory approvals required. Promoter, whole-time director and chief executive Abhishek Agarwal also serves on PSL Retail's board, while promoter-group members Priyanka Agarwal and Payal Agarwal are shareholders in Purple Style Labs.
