Purple United Sales deploys Rs 28.93 crore IPO proceeds

Purple United Sales Limited had deployed all Rs 28.93 crore of net initial public offering, or IPO, proceeds by September 30, 2026, according to an auditor-certified utilisation report. The report recorded no deviation from the December 13, 2024 prospectus, nil unutilised funds and no balance held in escrow.

How did Purple United Sales use its IPO proceeds?

Purple United Sales used the full Rs 28.93 crore of net IPO proceeds for the three objects set out in its offer document. It allocated Rs 18 crore to working-capital requirements, Rs 5.35 crore to opening new stores and Rs 5.58 crore to general corporate purpose, with each category fully utilised by September 30, 2026.

The company had raised gross fresh-issue proceeds of Rs 32.81 crore through the December 11 to December 13, 2024 public issue of 26.04 lakh equity shares with a face value of Rs 10 each. After issue-related expenses, the auditor identified Rs 28.93 crore as net proceeds available for the stated IPO objects.

The Rs 18 crore working-capital allocation represented the largest use of IPO funds, exceeding the Rs 5.35 crore new-store allocation and the Rs 5.58 crore general-corporate-purpose allocation. The auditor’s monitoring annexure showed no revised cost, no stated reason for a cost revision and no alternative financing arrangement for any of the three objects.

Which IPO object received the largest allocation?

Purple United Sales assigned Rs 18 crore to working capital, making it the largest IPO-proceeds category under the December 13, 2024 prospectus. This allocation was more than three times the Rs 5.35 crore earmarked for opening new stores and Rs 12.42 crore higher than the Rs 5.58 crore assigned to general corporate purpose.

The working-capital amount had already been fully deployed at the start of the April 1 to September 30, 2026 reporting period. The auditor recorded Rs 18 crore as utilised at the beginning and end of the half year, with nil deployment during the period and nil unutilised funds at September 30, 2026.

Purple United Sales also had fully used its Rs 5.35 crore allocation for opening new stores before the reporting half year began. The utilisation schedule recorded nil new-store spending from April 1 to September 30, 2026, meaning the category’s reported movement differed from general corporate purpose, where a small residual amount was deployed during the period.

The disclosure identifies the company as operating in the trading of lifestyle products in India and says its operations fall within a single business and geographical segment for Accounting Standard 17 segment-reporting purposes. It does not break down the Rs 5.35 crore new-store expenditure by store location, store count or individual opening date.

What changed during the September 2026 half year?

Purple United Sales deployed Rs 0.35 lakh during the half year ended September 30, 2026, completing the general-corporate-purpose allocation. Total IPO-proceeds utilisation rose from Rs 2,892.66 lakh at the beginning of the period to Rs 2,893.01 lakh at the end, while working capital and new-store expenditure showed no further spending.

General corporate purpose had a Rs 557.26 lakh utilised balance at the beginning of the period against its Rs 557.61 lakh allocation. The additional Rs 0.35 lakh deployed during the period brought the category to its full stated amount and reduced its unutilised balance to nil.

The report separately recorded Rs 0 as the balance in an escrow account at September 30, 2026. It did not list any instrument holding unutilised IPO funds, nor did it record a maturity date, investment earnings, return on investment or period-end market value for such funds.

Did the auditor report a deviation in IPO spending?

Purple United Sales reported no deviation from the IPO objects, and NGMKS & Associates marked the range of deviation as not applicable in its October 30, 2026 report. The auditor’s annexure also answered “Yes” to whether all utilisation was in line with disclosures in the offer document.

NGMKS & Associates conducted a limited-assurance engagement covering April 1 to September 30, 2026. Its procedures included obtaining the IPO objects from the prospectus, tracing utilisation figures to the books of account and bank statements, comparing those figures with the objects, and making management inquiries.

The firm concluded that nothing had come to its attention to indicate the utilisation statement was not in agreement with the audited books, other records or the December 13, 2024 prospectus. Limited assurance provides a lower level of assurance than reasonable assurance, as the auditor stated in its report.

The monitoring responses also recorded no change in the means of finance for the disclosed objects and no major deviation from earlier monitoring reports. Shareholder approval for a material deviation was marked not applicable, while the report noted no investor complaints during the period under review.

What does the fully utilised IPO balance show?

Purple United Sales’ September 30, 2026 statement shows that no IPO proceeds remained available for the three original objects after the Rs 0.35 lakh general-corporate-purpose deployment. The reported pattern was uneven across the half year: working capital and new stores were already fully funded, while general corporate purpose accounted for all spending in the period.

The finding concerns use of the Rs 28.93 crore net IPO proceeds, not the company’s later capital transactions. During the half year, Purple United Sales issued 7.82 lakh equity shares on a preferential basis at Rs 360 per share, raising Rs 28.14 crore in full consideration, according to its financial-results notes.

The company also allotted 5.29 lakh convertible warrants at Rs 360 per warrant pursuant to a board decision dated October 8, 2026. It received 25% upfront application money of Rs 4.76 crore, while the remaining Rs 14.27 crore is payable if warrant holders exercise their option within 18 months from allotment.

Conclusion

The combined disclosures show that Purple United Sales had used all Rs 28.93 crore of net IPO proceeds by September 30, 2026, with Rs 18 crore directed to working capital, Rs 5.35 crore to new stores and Rs 5.58 crore to general corporate purpose. The final Rs 0.35 lakh of spending during the half year eliminated the remaining balance, and the auditor reported no deviation or escrow funds.

The next disclosed matter to watch is the conversion window for the 5.29 lakh preferentially allotted warrants, under which the unpaid Rs 14.27 crore may become payable if holders exercise their rights within 18 months of allotment. Separately, Purple United Sales has disclosed a plan to issue non-convertible debentures of up to Rs 25 crore in one or more private-placement tranches, with terms to be decided by a board committee and relevant parties.