Go Fashion, which owns women’s bottomwear brand Go Colors, is set to open its initial public offer or IPO on November 17 amid a continued interest among companies to open up for subscription to the public. On Friday, November 12, Go Fashion fixed the price band of its IPO. This has been fixed at Rs 655 to Rs 690 per share. The initial public offer of the company will close on November 22 — going on sale for six days instead of three — as November 19 is a holiday. The bidding for anchor investors is set to open a day before on November 16, the company said in a virtual briefing.
Go Fashion plans to raise Rs 1,013.6 through its public issue at the upper end of the price band, the firm has said. The initial offer comprises fresh issue of equity shares totalling up to Rs 125 crore. On the other hand, an offer for sale of Rs 888.6 crore will also go up, whereby shareholders and promoters including PKS Family Trust, and VKS Family Trust will let go of their stakes. They will offload 7.45 lakh equity shares each.
The other entities selling their shares include investors Sequoia Capital India Investments IV (74.98 lakh shares), India Advantage Fund S4 I (33.11 lakh shares), and Dynamic India Fund S4 US I (5.76 lakh shares).
In the offer, up to 75 per cent of the shares have been reserved for qualified institutional buyers or QIBs while 15 per cent has been set aside for non institutional buyers. The remaining 10 per cent stakes have been reserved for non institutional buyers. At present, the PKS Family and VKS Family Trust hold 28.74 per cent stake each in the company. On the other hand, Sequoia Capital holds 28.73 per cent stake, India Advantage Fund has 12.69 per cent stake and Dynamic India Fund owns 1.1 per cent stake at Go Fashion.
The lot size of the maiden public bid has been fixed at 21 equity shares and in multiples of 21 shares thereof. This means that retail investors can invest a minimum of Rs 14,490 per lot in the IPO. The maximum price of one lot can go up to Rs 1,88,370 for 13 lots. Retail investors can invest up to Rs 2 lakh in the initial public offer.
The proceeds of the fresh issue will be used for funding the roll out of 120 new exclusive brand outlets. It will also be used to working capital requirements and for general corporate purposes.
Go Fashion is engaged in the development, design, sourcing, marketing and retailing of a range of women’s bottom-wear products under the brand, ‘Go Colors’. Its collection ranges from churidars, leggings, dhotis, harem pants, and patiala, to palazzos, culottes, pants, trousers and jeggings. 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.
JM Financial, DAM Capital Advisors (Formerly IDFC Securities) and ICICI Securities are the lead managers to the issue. The equity shares will be listed on BSE and NSE.
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