Go Fashion (India) IPO - 7 Things to Know

The IPO of Go Fashion (India) will open for subscription on 17th November and close for subscription on 22nd November. Go Fashion is a highly popular women’s wear brand which has been in existence in India since 2010 catering more to the urban women. Here is the gist of the story.
 

7 things to know about the Go Fashion (India) IPO

1) Incorporated in the year 2010, Go Fashion (India) specializes in women’s bottom-wear segment and is the largest organized player in this niche. It handles the complete value chain from design, development, sourcing, marketing and retailing of these bottom-wear brands across the length and breadth of India.

2) It has a wide portfolio of women’s bottom-wear and its portfolio consists of over 50 styles across 120 colours. It distributes through its proprietary 450 exclusive brand outlets (EBOs) as well as through large format stores like Reliance Retail, Globus, Spencer’s Retail, Unlimited etc.

3) The Rs.1,014 crore IPO will comprise of a fresh issue of Rs.125 crore and an offer for sale of Rs.889 crore. The IPO has been priced in the band of Rs.655 to Rs.690 with a market lot size of 21 shares. The promoter families will be offloading shares in the IPO while Sequoia capital has 28.7% stake in Go Fashion (India).

4) The Go Fashion IPO opens for subscription on 17th November and closes on 22nd November. The basis of allotment will be finalized on 25th November while the refunds will be initiated on 26th November. The shares will be credited to the demat accounts of eligible allottees on 29th November while the shares will list on NSE and BSE on 30th November.

5) The IPO proceeds will be used to essentially add 120 new exclusive brand outlets (EBOs) across India and expand presence beyond the current 23 states. The funds will also be used for working capital and general corporate purposes.

6) For FY21, Go Fashion (India) reported revenues of Rs.282.25 crore, which was lower than the Rs.396.84 crore reported in FY20. That was the impact of the pandemic and FY22 is expected to revert to growth. The company had made a small loss in FY21 as against profits in FY20 and FY19, largely due to the COVID led slowdown.

7) With 450 EBOs and 1,332 large format store partnerships, the company has substantial reach and a strong niche brand to back it up. Its operating economics and its multi-channel distribution, including strong digital focus, will be a major advantage in growing sales. The issue will be lead managed by DAM Capital, ICICI Securities and JM Financial.

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