Go Fashion India, operator of women’s apparel brand Go Colors endorsed by Sequoia and ICICI Venture has filed draft documents with the capital markets regulator in order to generate funds through an initial public offering.
“The IPO consist a fresh issue of shares for Rs 125 crore with an offer for sale by promoters PKS Family Trust and VKS Family Trust and the investors of Sequoia Capital India Investments IV, ICICI Venture’s India Advantage Fund Series 4 I and Dynamic India Fund S4 US I,” the company announced while filing the draft red herring prospectus with the Securities and Exchange Board of India.
The PKS Family Trust and the VKS Family Trust each will give away 745,676 shares. Sequoia Capital India will sell around 7.49 million shares, India Advantage Fund will offload 3.31 million shares while Dynamic India Fund will giveaway 576,684 shares.
The company deals in women’s clothing with items like leggings and churidars, pants, jeggings, palazzos and loungewear and possesses a total market share of 8 per cent in the branded women’s bottom-wear category in the previous fiscal year 2020. It aims to utilize the proceeds generated from the fresh issue of shares to fund the rollout of 120 top-notch brand outlets and to fulfil the working capital requirements, apart from general corporate purposes.
Promoters Prakash Kumar Saraogi, Gautam Saraogi, Rahul Saraogi, PKS Family Trust and VKS Family Trust have a 57.47 per cent stake in the company. Sequoia Capital India possesses 28.73 per cent, ICICI Venture 12.69 per cent and Dynamic India Fund, a private equity fund in Mauritius, holds a 1.1 per cent stake.
Go Fashion offers clothing for over 50 styles in more than 120 available colours. It deals in the development, design, sourcing, marketing and retailing of women’s bottom-wear products branded and sponsored by Go Colors.
The company’s shares increased to 27 per cent in the past year against the 19 per cent in FY15 and are expected to expand to 42 per cent by FY25 with the significant growth in the female population, a high number of working women, change in fashion trends, and rising spending power or budget scale of consumers.
Registered peers whose performance could be compared with Go Colors are Page Industries, Trent, Bata India, Aditya Birla Fashion & Retail and TCNS Clothing Company.
Go Fashion India incurred a loss of Rs 3.54 crore on revenue of Rs 250.67 crore in FY21, due to the pandemic situation. Profit in FY20 went to 70 per cent to Rs 52.63 crore and revenue jumped to 37 per cent to Rs 392 crore from the past financial year. Shardul Amarchand Mangaldas and Indus Law are the legal advisors to the latest issue.
