This stotra (hymn of praise) occurs in the Brahmanda Purana (history of the universe) in the chapter of discussion between Hayagreeva and Agasthya. Hayagreeva is an incarnation of Vishnu with the head of a horse who is held to be the storehouse of knowledge. Agasthya is one of the sages of yore and one of the stars of the constellation Saptarishi (Ursa major). At the request of Agasthya, Hayagreeva is said to have taught him the thousand holiest names of Lalita. This has been conveyed to us by the sage Maharishi Vyasa. Lalita Sahasranama is the only sahasranama composed by vagdevatas under Lalita’s direction. All the other sahasranamas are said to have been passed on the writings by Maharishi Vyasa. Note that even before Vyasa many worshipped the Devas with Sahasranamas. Vyasa did not compose sahasranams, but only popularized them through his writings.
Paramashiva is one of the trinity of Hindu pantheons, in charge of moksha (layam). He married Sati, the daughter of Daksha. Daksha and Shiva did not get along and consequently Daksha did not invite Shiva for one of the great fire sacrifices that he conducted. However Sati went to attend that function in spite of Shiva’s protest. Daksha insulted her husband and she jumped into the fire and ended her life. Consequently, at the behest of Shiva, Daksha was killed and later resurrected with a goat’s head. This incident upset Paramashiva and he entered into deep meditation. Sati reincarnated as daughter of Himavat, king of the mountains, and his wife, Mena. Naturally, Pārvatī sought and received Shiva as her husband.
The devas faced an enemy in Tarakasura who had a boon that he could be killed only by a son of Shiva and Parvati. So, to rouse Shiva from his deep meditation, the devas deputed Kamadeva, the God of love who shot his flower arrows at Shiva. Shiva ended his meditation and in fury for being disturbed, opened his third eye which reduced the God of love to ashes. The Devas and Rati, the wife of Kamadeva requested Shiva to give life to her husband. Lord Shiva instead of reviving Manmatha from the ashes, makes his presence immortal. Meaning manmatha s presence will be that of spring and romance itself. Manmatha becomes Ananga Dev. Meaning “without body”. Later Lord Shiva’s ganas or his followers find the ashes of Manmatha and through their icha sakthi create a child. That child is taught all the right things and proves very powerful. That power slowly builds into ego and anger. Everything opposite to love. Manmatha depicted love but his ashes turned out to be the opposite. The powerful child became known as Bhanda-asura. Meaning Bhandha means bondage and Asura is evil. Bhandasura, who made all the world impotent and ruled from the city called Shonita pura. He started troubling the devas. The devas then sought the advice of Sage Narada who advised them to conduct a fire sacrifice. From the fire rose Tripura Sundari.