Go Fashion (India), owner of womenswear brand ‘Go Colors’, is geared up for its initial public offer (IPO). The company has filed draft papers with markets regulator Securities and Exchange Board of India (SEBI) to garner funds through an initial share sale.
The company is engaged in the development, design, sourcing and retailing of a range of women’s bottomwear products under the brand, ‘Go Colors’.
The IPO comprises fresh issue of equity shares worth up to Rs. 125 crore and an offer-for-sale (OFS) of up to 12,878,389 equity shares by promoter and existing shareholders, as per the draft red herring prospectus.
Proceeds from the fresh issue will be used to fund rollout of 120 new exclusive brand outlets (EBOs), support working capital requirements and for general corporate purposes. As of May 2021, the company had 450 EBOs located across 115 cities.
Under the OFS, PKS Family Trust and VKS Family Trust will offload 7.45 lakh equity shares each, Sequoia Capital India Investments will sell up to 74.98 lakh shares, India Advantage Fund S4 I will divest up to 33.11 lakh shares and Dynamic India Fund S4 US I will sell up to 5.76 lakh shares.
Currently, PKS Family Trust and VKS Family Trust hold 28.74 per cent stake each in the company, Sequoia Capital holds 28.73 per cent stake, India Advantage Fund has 12.69 per cent stake and Dynamic India Fund owns 1.1 per cent stake in the firm.
Founded in 2010 by Vinod Saraogi and Prakash Saraogi, Go Fashion India is amongst the largest women’s bottomwear brands in India, with a market share of approximately 8 per cent.
The company is amongst the few apparel companies in India to have identified the market opportunity in women’s bottomwear and has acted as a ‘category creator’ for bottomwear.
For FY21, its revenue from operation was at Rs. 250.67 crore versus Rs. 392.01 crore a year ago. Net loss for the period stood at Rs. 3.54 crore against a profit of Rs. 52.63 crore last year.
