Go Fashion IPO: Opens tomorrow; find key details that investors must know before investing

Go Fashion (India) Limited, which runs one of India's largest women's bottom-wear brands, will launch its Initial Public Offering (IPO) for subscription tomorrow, Wednesday, November 17, 2021. The issue will close on Monday, November 22, 2021. The closing date has been extended because the market will remain closed on Friday for Gurunanak Jayanti.

The price band for the initial public offering (IPO) is fixed at Rs 655-690 per share. Retail investors can bid for a lot of 21 equity shares and in multiples thereof. As a result, retail investors can make a minimum investment of Rs 14,490 per lot and the maximum investment would be Rs 1,88,370 for 13 lots.

The IPO is expected to fetch Rs 1,013.6 crore at the upper price band. The public issue comprises a fresh issue of shares worth up to Rs 125 crore, and an offer for sale (OFS) of more than 1.28 crore equity shares by promoters and investors.

Under the offer-for-sale (OFS), PKS Family Trust and VKS Family Trust are going to offload 7.45 lakh equity shares each. Among investors, Sequoia Capital India Investments IV 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 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 a 12.69 per cent stake, and Dynamic India Fund owns a 1.1 per cent stake in the firm.

Up to 75 per cent of the total offer has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, while the remaining 10 per cent has been set aside for retail investors.

JM Financial Limited, DAM Capital Advisors Limited and ICICI Securities Limited are the book running lead managers of the issue while KFin Technologies Private Limited is the registrar for it. The equity shares of both companies will be listed on BSE and NSE.

The company will utilise net proceeds from the fresh issue to fund the rollout of 120 new exclusive brand outlets (EBOs), to support working capital requirements and general corporate purposes. However, the offer for sale money will go to selling shareholders.

Go Fashion (India) Limited is a women's bottom-wear brand in India, with a market share of approximately 8 per cent in the branded women's bottom-wear market in Fiscal 2020. It is engaged in the development, design, sourcing, marketing and retailing of a range of women's bottom-wear products under the brand, 'Go Colors'. It is among the few apparel companies in India to have identified the market opportunity in women's bottom-wear and have acted as a 'category creator' for bottom-wear. It is the first company to launch a brand exclusively dedicated to the women's bottom-wear category. (Source: Technopak Report)

Industry Summary

Women's bottom-wear market contributed 8.3 per cent of the women's apparel market amounting to Rs 13,547 crore in Fiscal 2020. The women's bottom-wear market is expected to grow at a CAGR of 12.4 per cent to reach Rs 24,315 million by Fiscal 2025 and is among the fastest-growing categories in women wear. Women bottom-wear products comprise the ethnic, fusion and western categories. The overall share of the bottom-wear category in women's apparel is expected to increase from 8.3 per cent in Fiscal 2020 to 9.6 per cent in Fiscal 2025. The branded women's bottom wear market is expected to see continued high growth in the future as well. (Source: Technopak Report)