Purple Wave Infocom Limited Makes Modest Debut with 4.76% Premium, Lists at ₹132.00 Against Moderate Subscription

Purple Wave Infocom Limited, engaged in sale and integration of digital professional audio-video equipment offering comprehensive end-to-end PRO AV and automation solutions including system design, integration, management, cloud-based communication services, annual maintenance contracts, and proprietary platform Streampurple for live streaming and content management manufacturing LED displays, USB cameras, speakerphones, professional displays, digital podiums, speakers, and amplifiers with 86 permanent employees serving customers across India and international markets, made a modest debut on BSE SME on December 5, 2025. After closing its IPO bidding between November 28 - December 2, 2025, the company commenced trading with a premium of 4.76% opening at ₹132.00 and touched ₹138.00 (up 9.52%).

Purple Wave Infocom Limited Listing Details

Purple Wave Infocom launched its IPO at ₹126 per share with minimum investment of 2,000 shares costing ₹2,52,000. The IPO received moderate response with subscription of 6.88 times - individual investors at 3.80 times, QIB at 11.85 times, NII at 7.69 times (sNII at 5.32 times and bNII at 8.87 times).

First-Day Trading Performance

Listing Price: Purple Wave Infocom opened at ₹132.00 representing premium of 4.76% from issue price of ₹126.00, touched high of ₹138.00 (up 9.52%) and low of ₹130.15 (up 3.29%), with VWAP at ₹132.07.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 40% and PAT rose 68% between FY24 and FY25, exceptional ROE of 71.54%, robust ROCE of 42.80%, RoNW of 52.69%, PAT margin of 7.23%, EBITDA margin of 11.06% demonstrating operational efficiency.

Diversified Product Portfolio: Wide range of PRO AV products including LED displays, USB cameras, speakerphones, professional displays, digital podiums, speakers, amplifiers, computer kiosks, comprehensive end-to-end solutions covering system design, integration, management, and on-site support.

Service Offerings: Cloud-based content management services through proprietary Streampurple platform, annual maintenance contracts, technical support, repair and maintenance services, well-established client relationships, and wide geographical reach across India and international markets.

Challenges:

Modest Market Reception: Opening premium of just 4.76% despite moderate subscription indicating cautious investor assessment, operating in overcrowded digital PRO AV integration segment creating competitive pressure and margin concerns.

Operational Concerns: Debt-to-equity of 0.85, average merchant banker track record, small post-IPO equity base of ₹9.25 crore indicating longer gestation period for mainboard migration, significant promoter dilution from 98.52%, limited investor confidence reflected in subdued listing performance.

Utilisation of IPO Proceeds

Real Estate Investment: ₹12.91 crore for capital expenditure towards purchasing office space cum product display area enhancing operational infrastructure and customer engagement capabilities.

Debt Repayment: ₹10.00 crore for repayment and prepayment of certain borrowings strengthening balance sheet and reducing debt-to-equity ratio to improve financial flexibility and reduce interest burden, plus general corporate purposes.

Financial Performance

Revenue: ₹126.15 crore for FY25, growth of 40% from ₹90.04 crore in FY24, reflecting expanding customer base across PRO AV equipment integration and cloud-based communication services segments.

Net Profit: ₹9.12 crore in FY25, growth of 68% from ₹5.44 crore in FY24, demonstrating operational leverage though sudden improvement from ₹0.66 crore in FY23 raising questions about sustainability and earnings quality.

Financial Metrics: Exceptional ROE of 71.54%, robust ROCE of 42.80%, debt-to-equity of 0.85, RoNW of 52.69%, PAT margin of 7.23%, EBITDA margin of 11.06%, price-to-book of 10.39x, post-issue EPS of ₹15.48, P/E of 8.14x, net worth of ₹17.30 crore, total borrowings of ₹14.73 crore, and market capitalisation of ₹121.77 crore.