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What is the story about?
Purple Style Labs (PSL) and its merchant bankers were preparing for a ₹680 crore initial public offering (IPO) scheduled to open on Monday (Aug 31).
The soon-to-be listed company is the parent of the multi-brand fashion retailer Pernia’s Pop-Up Shop that has over 1,100 stores selling outfits from marquee designers like Seema Gujral, Anushree Reddy, Amit Aggarwal, Rohit Gandhi and Rahul Khanna.
However, on Thursday (Aug 27), the merchant bankers for the IPO got an unexpected notice from the lawyers representing the 40-year-old Pernia Qureshi, the original founder of Pernia’s Pop-Up Shop, which she sold to Purple Style Labs in 2018.
Here's what the notice sent to the merchant bankers at Axis Capital and IIFL Capital Services said. "PSL was not granted an unfettered proprietary entitlement to hold itself out as independently owning or possessing an unrestricted right to use the "Pernia" / "Pernia's" mark on a standalone basis. The Impugned Content is hence exJ'acie false, contrary to mutually agreed license terms and a thinly veiled. disingenuous attempt to present PSL as an entity holding material trademarks rights (to investors and the public at large) which simply do not vest with it."
The sum and substance of the legalese is as following: PSL has intellectual property rights to use "Pernia’s Pop Up Shop", and not 'Pernia's', as indicated by the IPO note issued by the bankers.
However, it's important to note that the draft red herring prospectus (DRHP) filed by Purple Style Labs with the Securities and Exchange Board of India (SEBI) doesn't mention that it has the rights to the use 'Pernia's' brand.
The two relevant excerpts have been reproduced below:
Read more: Tempsens Instruments shares make blockbuster debut, list at 111% premium on NSE
The soon-to-be listed company is the parent of the multi-brand fashion retailer Pernia’s Pop-Up Shop that has over 1,100 stores selling outfits from marquee designers like Seema Gujral, Anushree Reddy, Amit Aggarwal, Rohit Gandhi and Rahul Khanna.
However, on Thursday (Aug 27), the merchant bankers for the IPO got an unexpected notice from the lawyers representing the 40-year-old Pernia Qureshi, the original founder of Pernia’s Pop-Up Shop, which she sold to Purple Style Labs in 2018.
Here's what the notice sent to the merchant bankers at Axis Capital and IIFL Capital Services said. "PSL was not granted an unfettered proprietary entitlement to hold itself out as independently owning or possessing an unrestricted right to use the "Pernia" / "Pernia's" mark on a standalone basis. The Impugned Content is hence exJ'acie false, contrary to mutually agreed license terms and a thinly veiled. disingenuous attempt to present PSL as an entity holding material trademarks rights (to investors and the public at large) which simply do not vest with it."
The sum and substance of the legalese is as following: PSL has intellectual property rights to use "Pernia’s Pop Up Shop", and not 'Pernia's', as indicated by the IPO note issued by the bankers.
However, it's important to note that the draft red herring prospectus (DRHP) filed by Purple Style Labs with the Securities and Exchange Board of India (SEBI) doesn't mention that it has the rights to the use 'Pernia's' brand.
The two relevant excerpts have been reproduced below:
The one on top is from Axis Capital's IPO Note and the one below is from the DRHP.
Read more: Tempsens Instruments shares make blockbuster debut, list at 111% premium on NSE
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