The public issue of Go Fashion, which owns the brand Go Colors, had been subscribed 135.46 times on November 22, the third and final day of bidding. Investors put in bids for 109.44 crore equity shares against an offer size of 80.79 lakh units, as per the exchange data.
Retail investors have been active since day one of the bidding, buying shares 49.70 times their reserved portion, while the part set aside for non-institutional investors has been subscribed 262.08 times and that of qualified institutional buyers 100.73 times.
Go Fashion, which had a market share of around 8 percent in the branded women's bottom-wear market in FY20, opened its Rs 1,013.61-crore public issue for subscription on November 17. The price band for the offer has been fixed at Rs 655-690 a share.
Also read Moneycontrol's Exclusive Research Note on Go Fashion
"The company has a widespread distribution network consisting of 459 exclusive branded outlets (70% of revenue) and its clothes are also available in 1200+ LFS’ (22% of revenue). Strong operating metrics with one of the industry’s highest revenue/sq ft (~| 17000/sq ft. as on FY20) and healthy operating margins (~21% pre-Ind-AS 116). Capital efficient business model with RoE of ~18% as on FY20," said an ICICI Securities note.
"The company follows an asset-light business model, with production outsourced on a job work basis (73 suppliers, 42 job-workers). It manages its entire supply chain from its 99100 square foot warehouse in Tirupur, Tamil Nadu and is capable of handling complex SKU mixes," the brokerage firm said.
The branded women’s bottom-wear market is pegged at Rs 4,473 crore (33% organised penetration) and the company has ~8% market share. The branded space is expected to grow at a CAGR of 21% by FY25, it added.
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Incorporated in 2010, Go Fashion is the first company to launch a brand exclusively dedicated to the women's bottom-wear category. It has a pan-India network of 459 exclusive brand outlets (EBO) in the country, with a significant number of stores in southern and western India.The company proposes to utilise the net proceeds from the fresh issue (Rs 125 crore) towards funding for the roll-out of 120 new EBOs, and working capital requirements, besides general corporate purposes.