Go Colors IPO to open for bidding during November 17-22

Go Fashion, the women's bottom-wear products maker under Go Colors brand, has decided to launch its initial public offering for subscription on November 17. This would be second public issue getting launched next week after Tarsons Products.

The price band and the lot size for IPO will be disclosed by the company in coming days. Thte offer will close on November 22.

The offer comprises a fresh issue of Rs 125 crore and an offer for sale by promoters and investors.

Promoters PKS Family Trust and VKS Family Trust will sell up to 7,45,676 equity shares each via offer for sale. Among investors, Sequoia Capital India Investments IV will offload 74,98,875 equity shares, India Advantage Fund S4 I will sell 33,11,478 equity shares, and Dynamic India Fund S4 US I has put up 5,76,684 equity shares for sale in OFS.

The net proceeds from fresh issue will be utilised for funding roll out of 120 new EBOs (exclusive brand outlets), and working capital requirements.

Promoter and promoter group (including PKS Family Trust and VKS Family Trust) holds 57.47 percent shareholding in the company, and the rest is held by investors.

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Sequoia Capital India Investments IV owns 28.73 percent shareholding in the company, India Advantage Fund S4 I 12.69 percent, and Dynamic India Fund S4 US I has 1.1 percent shares.

Go Fashion is a women's bottom-wear brand in India, with a market share of approximately 8 percent in the branded women's bottom-wear market in FY20. The women’s apparel market is estimated to be approximately 36 percent of the total apparel market while the women's bottom-wear market contributed 8.3 percent of women's apparel market in FY20.

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The share of organized retailing within women's apparel has increased from 19 percent in FY15 to 27 percent in FY20, and is expected to reach 42 percent by FY25.

Go Fashion posted a loss of Rs 3.54 crore in the financial year FY21, impacted by Covid crisis, against FY20 profit of Rs 52.63 crore that increased from Rs 30.94 crore in FY19. Revenue in FY21 fell to Rs 250.66 crore, from Rs 392 crore in FY20.

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In the June 2021 quarter, the loss widened to Rs 18.99 crore compared to loss of Rs 8.6 crore in the corresponding period last fiscal. Revenue in the same period jumped to Rs 30.99 crore from Rs 10.3 crore.

JM Financial, DAM Capital Advisors, and ICICI Securities are the book running lead managers to the issue.