The IPO market continues to buzz with activity, bringing forth new opportunities, particularly in the SME segment. One such upcoming issue drawing attention is the Purple Wave Infocom Ltd. IPO. For investors looking to understand the core business, the financials, and the offering details before deciding, preparation is key. This comprehensive analysis breaks down everything you need to know about this venture into the public markets.
Understanding the Core Business: Purple Wave Infocom Ltd.
Established in 2007, Purple Wave Infocom Ltd. specializes in the intricate world of digital professional audio-video (PRO AV) equipment sales and integration. They don't just sell hardware; they provide complete, end-to-end solutions, encompassing everything from system design and integration to management and crucial after-sales support.
Key Operational Strengths and Offerings
- Comprehensive Solutions: Offers integrated PRO AV and automation solutions tailored for diverse client needs.
- Product Diversity: Sells a wide range of equipment, including LED displays, professional cameras, digital podiums, and audio systems.
- Digital Services: Utilizes proprietary platforms like Streampurple for live streaming and cloud-based content management.
- Client Support: Provides vital after-sales services, including Annual Maintenance Contracts (AMC) and technical support, ensuring optimal system performance.
The SME IPO Offering Snapshot
This public offering on the BSE SME platform is structured as a 'Book Build' issue, comprising entirely of a fresh issue of equity shares aimed at raising capital for the company's growth initiatives.
Critical IPO Subscription Dates and Schedule
Mark your calendars! The subscription window for this SME IPO is brief, demanding prompt attention from interested retail and HNI investors.
| Milestone | Tentative Date |
|---|---|
| IPO Opens for Subscription | Friday, November 28, 2025 |
| IPO Closes for Subscription | Tuesday, December 2, 2025 |
| Anchor Investor Bidding Date | Monday, November 27, 2025 |
| Finalization of Allotment | Wednesday, December 3, 2025 |
| Credit of Shares to Demat Account | Thursday, December 4, 2025 |
| Tentative Listing Date on BSE SME | Friday, December 5, 2025 |
Key IPO Mechanics and Pricing
The issue is priced within a defined band, and lot sizes dictate the minimum investment required for different investor classes.
- Total Issue Size: ₹31.45 Crores (Fresh Issue)
- Price Band: ₹120.00 to ₹126.00 per share
- Face Value: ₹10 per share
- Lot Size: 1,000 Shares
Investment Requirements (Based on Upper Price Band)
| Investor Category | Minimum Lots | Shares Applied | Minimum Investment Amount |
|---|---|---|---|
| Retail Investor (Min) | 2 | 2,000 | ₹2,52,000.00 |
| HNI (Small) (Min) | 3 | 3,000 | ₹3,78,000.00 |
Capital Structure and Share Allocation Strategy
The total issue involves 24,96,000 shares, with specific allocations made to various investor classes to ensure broad participation.
Investor Category Reservation Breakdown
| Investor Group | Shares Offered | Percentage (%) |
|---|---|---|
| Qualified Institutional Buyers (QIB) | 11,14,000 | 44.63% |
| Non-Institutional Investors (NII) | 3,78,000 | 15.14% |
| Retail Individual Investors (RII) | 8,76,000 | 35.10% |
| Market Maker Reservation | 1,28,000 | 5.13% |
Anchor Investor Confidence
The company secured ₹7.99 crore from anchor investors on November 27, 2025. This early commitment provides a crucial vote of confidence. Note the lock-in periods:
- 50% of shares are locked in until January 2, 2026 (30 Days).
- The remaining shares are locked in until March 3, 2026 (90 Days).
Financial Health and Performance Metrics
Analyzing the provided financial data reveals significant growth trajectories in recent fiscal years.
Financial Performance Summary (Amounts in ₹ Crore)
| Metric | 31 Mar 2024 | 31 Mar 2025 | 30 Jun 2025 (Interim) |
|---|---|---|---|
| Total Income | 90.04 | 126.15 | 35.91 |
| Profit After Tax (PAT) | 5.44 | 9.12 | 3.58 |
| Total Borrowing | 11.03 | 14.73 | 14.91 |
The data indicates a strong growth momentum, with Total Income rising by 40% and Profit After Tax (PAT) increasing by 68% between FY24 and FY25. The recent interim figures for June 2025 suggest continued activity.
Valuation and Profitability Indicators (as of Mar 31, 2025)
| Key Metric | Value |
|---|---|
| Return on Equity (ROE) | 71.54% |
| Return on Capital Employed (ROCE) | 42.80% |
| Debt to Equity Ratio | 0.85 |
| Price to Book Value | 10.39x |
| Pre-IPO EPS (Rs) | 13.50 |
| Post-IPO P/E (x) | 8.14 |
Promoter Strength and IPO Objectives
Leadership and Ownership Structure
- Key Promoters: Mr. Manoj Kumar Singh, Sandhya Singh, and Ananya Singh.
- Pre-Issue Promoter Holding: A dominant 98.52%, indicating strong promoter conviction in the business before the public offering.
Deployment of Raised Capital
The capital raised is intended to fuel specific strategic areas of the business:
| Objective | Amount (In Millions INR) |
|---|---|
| Funding Office Space/Product Display Area (Capex) | 129.10 |
| Repayment/Prepayment of Borrowings | 100.00 |
| General Corporate Purposes | (Remaining Proceeds) |
SWOT Analysis for Purple Wave Infocom IPO
A balanced assessment requires looking at the internal capabilities and external environment.
Strengths (Internal Advantages)
- High profitability metrics indicated by excellent ROE and ROCE figures.
- Strong promoter interest evident from the near 99% pre-issue holding.
- End-to-end service model provides higher client retention compared to pure product sellers.
- Established client relationships in a specialized technical field.
Weaknesses (Internal Limitations)
- Relatively high total borrowing level compared to net worth, despite planned repayment.
- Reliance on a small employee base (86 permanent employees as of Sept 2025) for comprehensive technical services.
Opportunities (External Favorable Factors)
- Growing demand for digital transformation and advanced AV solutions across corporate and educational sectors.
- Expansion into international markets offers potential for revenue diversification.
- IPO proceeds dedicated to acquiring fixed assets (office space) can enhance operational stability.
Threats (External Challenges)
- The PRO AV sector is technology-driven; rapid obsolescence requires constant investment in product updates.
- Competition from larger, established system integrators who might possess greater bargaining power with global suppliers.
Connecting with the IPO Intermediaries
For regulatory compliance or detailed document review, these parties are your points of contact:
Lead Manager and Registrar Details
| Role | Name | Contact Email/Website |
|---|---|---|
| Book Running Lead Manager | Smart Horizon Capital Advisors Pvt.Ltd. | (Performance Details Available) |
| Registrar | Maashitla Securities Pvt.Ltd. | investor.ipo@maashitla.com |
| Company Contact | Purple Wave Infocom Ltd. | investors@purplewave.in |
Navigating Application Methods
Applying for this SME IPO can be done through two primary digital payment mechanisms: ASBA (through net banking) or UPI (through brokerage platforms).
Applying Via Discount Brokers (e.g., Zerodha Example)
If you use a major discount broker, the process is streamlined:
- Log into your broker’s dedicated portal (like Console).
- Navigate to the IPO section and select the Purple Wave Infocom IPO.
- Input the required details: UPI ID, quantity (minimum 1,000 shares), and price bid.
- Submit the form, and then approve the mandate via your linked UPI application (Net Banking or UPI App) before the specified cut-off time (5 PM on Dec 2, 2025).
Final Thoughts on the SME Opportunity
The Purple Wave Infocom IPO presents a chance to invest in a growth-oriented business within the specialized PRO AV integration space. The company demonstrates strong historical profitability growth and has clear objectives for utilizing the fresh capital to reduce debt and expand physical presence. As with all SME listings, potential investors should weigh the strong growth fundamentals against the inherently higher volatility often associated with smaller public entities. Thorough due diligence, including reading the Red Herring Prospectus (RHP), is essential before committing funds.