Go Fashion (India), a womenswear business, is preparing for an initial public offering (IPO)

17th August 2021, Mumbai:

Go Fashion (India), the owner of the Go Colors clothing line, is preparing for its initial public offering (IPO). The business has filed draught documents with India's securities regulator, the Securities and Exchange Board of India (SEBI), in order to raise money through an initial public offering (IPO).

Under the name ‘Go Colors,' the firm is involved in the creation, design, sourcing, and distribution of a variety of women's bottomwear items.

According to the draught red herring prospectus, the IPO would include a fresh issue of equity shares worth up to Rs. 125 crore and an offer-for-sale (OFS) of up to 12,878,389 equity shares by the promoter and existing shareholders. The proceeds from the new offering will be used to fund the deployment of 120 new exclusive brand outlets (EBOs), as well as meet working capital needs and other business needs. The firm had 450 EBOs spread over 115 cities as of May 2021.

PKS Family Trust and VKS Family Trust will each sell 7.45 lakh equity shares under the OFS, while Sequoia Capital India Investments would sell up to 74.98 lakh shares, India Advantage Fund S4 I will sell up to 33.11 lakh shares, and Dynamic India Fund S4 US I will sell up to 5.76 lakh. PKS Family Trust and VKS Family Trust both own 28.74 percent of the company, Sequoia Capital owns 28.73 percent, India Advantage Fund owns 12.69 percent, and Dynamic India Fund owns 1.1 percent of the company.

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Go Fashion India, founded in 2010 by Vinod and Prakash Saraogi, is one of India's leading women's bottomwear companies, with an approximate 8% market share. The firm is one of the few Indian clothing companies to see the market opportunity in women's bottomwear and serve as a "category developer" for the category. Its income from operations in FY21 was Rs. 250.67 crore, down from Rs. 392.01 crore the previous year. The net loss for the period was Rs. 3.54 crore, compared to a profit of Rs. 52.63 crore the previous year.

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