1.At a Glance
Purple Wave Infocom Ltd — the name sounds like a colour palette met an IT startup at a Delhi coffee shop — is making waves (pun fully intended) in the SME IPO pool. The company is raising ₹31.45 crore through a fresh issue of 24.96 lakh shares, priced between ₹120 and ₹126 each. The ₹116.5 crore market cap may not sound massive, but their 71.5% ROE makes your bank FD look like pocket change.
Between FY24 and FY25, revenue jumped from ₹90 crore to ₹126 crore (up 40%), while PAT soared 68% to ₹9.12 crore. That’s some serious decibel gain for a company that literally deals in audio-video systems. The IPO opened on November 28 and closes on December 2, 2025, with listing scheduled for December 5 on BSE SME.
The retail crowd has a ₹2.52 lakh entry fee (2,000 shares), while HNIs can show off with a ₹3.78 lakh minimum. The lead manager, Smart Horizon Capital Advisors, has previously handled decent SME issues, while registrar Maashitla Securities has the thankless job of answering 10,000 “when allotment?” emails.
So, is this wave worth surfing? Let’s tune in.
2.Introduction
If you ever attended a conference where the mic didn’t work, the projector blinked like Diwali lights, and the audio echoed like an underground cave — congratulations, you’ve experienced the kind of market Purple Wave Infocom wants to fix.
Born in 2007, this Delhi-based company started as an integrator of digital PRO AV (professional audio-video) systems — the kind that make boardrooms look smarter, classrooms more interactive, and politicians sound… slightly more credible.
From humble beginnings wiring up LED screens to now offering full-fledged automation, live streaming, and cloud-based content management, Purple Wave Infocom has managed to grow into a niche tech integrator. And yes, they even have a proprietary platform —Streampurple— which sounds like a music app but is actually their tool for live streaming and content management.
The timing of the IPO feels strategic. The Indian AV market is booming thanks to hybrid work, online education, and corporate “Zoom fatigue.” Every organization wants slicker displays and smarter meeting rooms, and Purple Wave is riding that trend like a Bollywood sound engineer after his third cup of cutting chai.
But are they tech leaders or just system integrators in fancy shirts? That’s what we’re here to decode.
3.Business Model – WTF Do They Even Do?
Purple Wave Infocom’s business model can be described in three words:connect, display, impress.
They sell and integrate professional audio-video equipment — think LED displays, digital podiums, amplifiers, speakers, and cameras that make corporate life slightly less miserable. Their services span across:
- Direct Sales & Distribution:Importing and selling AV gear from global brands.
- System Integration:Designing and installing full AV setups for corporates, schools, and institutions.
- Cloud Services:Offering tools for content creation, scheduling, and display through theirStreampurpleplatform.
- After-Sales AMC:Because every speaker eventually dies at the worst possible time, they offer annual maintenance and tech support.
The company caters to education institutions, government departments, and corporates — all sectors with deep pockets and deeper bureaucracy. Their “end-to-end” tag basically means they sell the hardware, install it, connect it to the cloud, and bill you in four stages.
It’s a neat mix of product and service revenue, with recurring maintenance income keeping cash flow alive. In essence, they’re the IT equivalent of the wedding DJ who never leaves after the party — always there for “support.”
4.Financials Overview
| Metric (₹ Cr) | Q1 FY26 (Jun’25) | FY25 | FY24 | YoY % (FY25 vs FY24) | QoQ (Q1 FY26 vs FY25 avg) |
|---|---|---|---|---|---|
| Revenue | 35.91 | 126.15 | 90.04 | 40.1% | – |
| EBITDA | 5.24 | 13.94 | 8.31 | 67.7% | – |
| PAT | 3.58 | 9.12 | 5.44 | 67.6% | – |
| EPS (₹) | 15.48* | 13.50 | – | 14.7% | – |
*Annualised based on Jun’25 earnings
The financials scream “growth on steroids.” PAT margin improved to 7.23% in FY25, and EBITDA margin hit 11.06%. Revenue up, profit up, and the only thing going down seems to be borrowing-to-equity ratio (now 0.85).
The company’s EPS of ₹15.48 post-issue and P/E of 8.14x make it cheaper than your average AV project cost.
5.Valuation Discussion – Fair Value Range
Let’s talk numbers like the nerds we are.
Method 1: P/E ApproachPost-issue EPS: ₹15.48Industry average (AV, electronics integration SMEs): ~12–16x→ Fair Value Range: ₹185 – ₹248
Method 2: EV/EBITDAEV = Market Cap (₹116.5 Cr) + Debt (₹14.9 Cr) = ₹131.4 CrEBITDA FY25 = ₹13.94 Cr → EV/EBITDA = 9.4xComparable range for SMEs: 8–12x → Fair Value Range = ₹125 – ₹180
Method 3: Simplified DCF (Educational only)Assuming 20% growth for 3 years, discount rate 12%, terminal value 8x EBITDA → Intrinsic value ≈ ₹150 – ₹190
📘Fair Value Range (Educational Only): ₹150 – ₹200 per share.(This is for learning purposes, not investment advice.)
6.What’s Cooking – News, Triggers, Drama
Purple Wave’s IPO drama began with a ₹7.99 crore anchor round on November 27, 2025 — yes, one day before the opening, because anchors love getting the VIP table.
Anchor investors grabbed 6.34 lakh shares, locked for 30 to 90 days. The subscription data on Day 1 shows moderate excitement — 0.65x overall, with QIBs leading at 0.81x. Retail at 0.70x shows decent interest considering SME fatigue post-Diwali.
Triggers ahead:
- Capex for Office Space:₹12.91 crore for a new office/display area — finally a place to show off those speakers.
- Debt Repayment:₹10 crore to clean up the books.
- Expansion:Leveraging automation and content services — think classrooms that talk back and offices that
