Purple Wave Infocom

• Purple Wave Infocom is coming out with an initial public offering (IPO) of 24,96,000 shares in a price band of Rs 120-126 per equity share. 
• The issue will open on November 28, 2025 and will close on December 02, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 12.00 times of its face value on the lower side and 12.60 times on the higher side.
• Book running lead manager to the issue is Smart Horizon Capital Advisors.
• Compliance Officer for the issue is Shivani Gupta.

Profile of the company

Established in 2007, Purple Wave Infocom is engaged in the business of digital PRO AV (professional audio-video) integration, post-sales support and distribution. Audio video (AV) integration involves the combination of audio, video, and control systems into a unified solution. It provides end-to-end customised digital PRO AV and automation solutions which includes designs, integration, management & on-site support including cloud-based communication and automation solution for organizations across the country and in overseas market. Its technological solutions re-define communication, connectivity and creative synergy. It excels in designing and implementing customized AV solutions for corporate boardroom, organised retail digital branding, indoor & outdoor advertising, smart classroom, government projects, place of worship, home theatre, experience centre and other industries. It also offers value added services such as content management service - in Software as a service (SaaS) model, a cloud-based tool that helps users create, store, edit and publish digital content on their screens. The company is offering live streaming and content management services through “Streampurple”.

In addition to integration, the company is also engaged in direct selling and distribution of PRO AV products including but not limited to active LED screens (indoor/outdoor), professional display screens (touch / non-touch screens), digital signage screens, electronics shelf labels (ESL), digital podium, video conferencing cameras, processors, media players, speakers, mics, amplifiers, unified communication (UC) devices, hearing assistive device, mounts, cables and accessories. The company is also offering after-sales value added services includes annual maintenance contract (AMC) for technical support, repair & maintenance services of AV infrastructure to ensure optimal product performance and customer satisfaction.

The company’s customised AV solutions enable individuals and organizations to communicate, collaborate and present information more effectively and efficiently. It caters to the specialised needs of corporates and individuals’ clients by providing PRO AV and automation solutions designed to meet individual preferences and diverse user requirements. Its PRO AV solution helps in aiding the digital transformation across the sectors such as advertising technology (AdTech), education technology (EdTech), unified communication (UC) and AV entertainment & automation.

Proceed is being used for:

• Funding capital expenditure requirements of the company towards purchasing an office space cum product display area
• Repayment/ prepayment of certain borrowings availed by the company
• General corporate purpose

Industry Overview

India is among the top countries globally in the field of scientific research, positioned as one of the top five nations in the field of space exploration. The country has regularly undertaken space missions, including missions to the moon and the famed Polar Satellite Launch Vehicle (PSLV). India is likely to take a leading role in launching satellites for the SAARC nations, generating revenue by offering its space facilities for use to other countries. The engineering R&D and product development market in India is forecast to post a CAGR of 12% to reach $63 billion by 2025, from $31 billion in 2019. As per the Economic Survey 2022, India’s gross domestic expenditure on R&D (GERD) as a percentage of GDP stood at 0.66%. India plans to move forward with developing its science and technology sector by collaborating with other countries. India has active bilateral science and technology (S&T) programs of cooperation with more than 45 countries, including dedicated programs for Africa, ASEAN, BRICS, EU and neighbouring countries. India is aggressively working towards establishing itself as a leader in industrialization and technological development. Significant developments in the nuclear energy sector are likely as India looks to expand its nuclear capacity.

Meanwhile, the Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy and is making significant strides. The increasing availability of fast and cheap internet, rising incomes, and increasing purchases of consumer durables have significantly aided the industry. India’s media and entertainment industry are unique as compared to other markets. The industry is well known for its extremely high volumes and rising Average Revenue Per User (ARPU). The M&E sector is set for substantial growth, with a projected 10.2% increase, reaching Rs 2.55 trillion ($30.8 billion) by 2024 and a 10% CAGR, hitting Rs 3.08 trillion ($37.2 billion) by 2026. Advertising revenue in India is projected to reach Rs 330 billion ($3.98 billion) by 2024. India has also gotten on board with 5G and is already planning for 6G well ahead of the future. This push towards digital adoption especially in the rural regions will provide advertisers and publishers with an immense opportunity to capture untapped markets and help grow India’s media and entertainment industry forward.

Further, the Indian Electronics System Design & Manufacturing (ESDM) sector is one of the fastest growing sectors in the economy and is witnessing a strong expansion in the country. The ESDM market in India is well known internationally for its potential for consumption and has experienced constant growth. The Indian electronics manufacturing industry is projected to reach $520 billion by 2025. The demand for electronic products is expected to rise to $400 billion by FY25 from $33 billion in FY20. The demand for electronic goods has increased as consumers' preferences for products and devices with smart technology (like smart LED TVs) and inventive designs have changed and disposable incomes have increased. Continuous rise in personal disposable income in India increased to reach 2,410 in FY23, which is directly correlated with consumers' desire to spend money on electronics. 

Pros and strengths

Wide product portfolio having applications across various customer segments: The company provides end-to-end customised digital PRO AV and automation solutions which includes designs, integration, management & support on site including cloud-based communication and automation solution for organizations across the country and in overseas market. It excels in designing and implementing customized AV solutions for corporate boardroom, retail, outdoor advertising, smart classroom, government projects, place of worship, home theatre, experience centre and other industries. In addition to integration, the company is also engaged in direct selling and distribution of PRO AV products including but not limited to active LED screens (indoor/outdoor), professional display screens (touch / non-touch screens), digital signage screens, video conferencing cameras, processors, media players, speakers, mics, amplifiers, hearing assistive device, mounts cables and accessories.

Well established relationship with clients: The company through regular communication and personalized service, has fostered a client base who provide it repeated business for all their audio video needs (Active LED screens, Professional display and Audio needs). This relationship with clients has been crucial for it to sustain competition in the industry. It has a dedicated toll-free line for its customers to address any difficulties faced while operating its products. It ensures to attend any such queries from its customers by sending its technical personnel at the customer site or the same is addressed through telephone support. The company has an experienced sales and technical team across India.

Leveraging the experience of its Promoters and Directors: The company’s Promoters, Chairman and Managing Director, Manoj Kumar Singh and its Whole-Time Director, Sandhya Singh who possesses over 28 years and 17 years of experience respectively in the AV industry. Its promoters are associated with the company since its inception. They are well-versed in the latest advancements in technology and are constantly updating their knowledge to provide innovative and customized solutions to meet the varied requirements of its clients. The vision and growth strategies of the company have been greatly influenced by their experience.

Risks and concerns

Heavy reliance on limited customer base: The company is dependent on certain customers who have contributed to a substantial portion of its total revenues. The company has garnered 69.90%, 61.27% and 74.03% of its total revenue from top 10 customers in FY25, FY24 and FY23 respectively. Any loss of its major customers may reduce its sales and affect its estimates of anticipated sales, and may have an adverse effect on its business, results of operations, financial condition and cash flow. Further pricing pressure from customers may adversely affect its gross margin, profitability and ability to increase its prices, which in turn may materially adversely affect its business, results of operations and financial condition.

Revenue vulnerability due to Delhi-centric operations: The company has derived a significant portion of its revenue from operations from customers located in certain geographical regions especially Delhi. The company has garnered 36.48%, 40.53% and 41.02% of its revenue from operations from Delhi in FY25, FY23 and FY22 respectively. The concentration of its revenues from Delhi heightens its exposure to adverse developments related to competition, as well as economic, political, regulatory circumstances including on account of any on-going economic slowdown and inflationary trends. The existing and potential competitors to the company’s businesses in India may increase their focus in the said region, which could reduce its market share. The occurrence of or its inability to effectively respond to, any such events or effectively manage the competition in the region, could have an adverse effect on its business, results of operations, financial condition, cash flows and future business prospects.

Competitive bidding risk: As a part of the company’s business and operations, it bids for projects on an on-going basis. Projects are awarded following competitive bidding processes and satisfaction of prescribed qualification criteria. While service quality, technological capacity and performance, as well as reputation, experience and sufficiency of financial resources are important considerations in selecting AV integrators by respective authority decision makers, there can be no assurance that it would be able to meet such qualification criteria. If the company is not able to successfully bid for new projects, it may adversely affect its business operations and financial conditions.

Outlook

Purple Wave Infocom is engaged in the sale and integration of digital professional audio-video (PRO AV) equipment. The company offers comprehensive, end-to-end PRO AV and automation solutions, including system design, integration, management, and on-site support. The company has wide product portfolio having applications across various customer segments. On the concern side, the company is highly dependent on certain key customers for a substantial portion of its revenues. Loss of relationship with any of these customers may have a material adverse effect on its profitability and results of operations. Moreover, the company’s business is dependent on global suppliers/manufacturers effectively maintaining, promoting or developing their brands and maintaining standard quality products including launching new AV (Audio-Video) products at regular intervals. 

The company is coming out with a maiden IPO of 24,96,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 120-126 per equity share. The aggregate size of the offer is around Rs 29.95 crore to Rs 31.45 crore based on lower and upper price band respectively. On performance front, the company has reported 40.16% rise in revenue from operations to Rs 12,601.59 lakh in FY25 as compared to Rs 8,990.74 lakh in FY24. The company net profit surged 67.61% to Rs 911.51 lakh in FY25 as compared to Rs 543.83 lakh in FY24. 

As a part of its growth strategy, the company plans to expand its operation by funding of capital expenditure towards setting up of office space cum product showcase area for streamlined operations, brand awareness and creating selling opportunities for its products. The company’s plans for infrastructure expansion revolve around establishing office space cum product showcase area strategically positioned to drive sales growth and enhance customer engagement as well as saving in rent expenses. The office space cum product showcase area will be sitting up in Delhi which will offer immersive environments where customers can interact firsthand with its diverse range of AV products and automation solutions. The product showcase area will design to appeal to affluent clients and resellers, interested in AV and automation solutions. With a dedicated customer relations team focused on providing personalized attention, it ensures that each customer receives customized solutions that align with their unique needs. These activities are integral to creating, maintaining and enhancing brand visibility and correspondingly to create, sustain and enhance its presence in the industry.