The initial public offering (IPO) of Go Fashion, which runs one of India's largest women's bottom-wear brands, opened for subscription on Wednesday, and remain open till November 22. The bidding for anchor investors will open today.
Here are the key things to know about Go Fashion IPO:
The price band for the initial public offering (IPO) is fixed at Rs 655-690 a share. At the upper end of the price band, the IPO is expected to fetch 1,013.6 crore.
This issue comprises a fresh issue of shares worth Rs 125 crore and an offer for sale (OFS) of shares worth Rs 888.6 crore by the promoter and existing shareholders.
Under the offer-for-sale (OFS), PKS Family Trust and VKS Family Trust are going to offload 7.45 lakh equity shares each, Sequoia Capital India Investments will sell up to 74.98 lakh shares, India Advantage Fund S4 I will divest up to 33.11 lakh shares and Dynamic India Fund S4 US I will sell up to 5.76 lakh shares.
Go Fashion said that 75 percent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors, while the remaining 10 per cent has been set aside for retail investors. Investors can bid for a minimum of 21 equity shares and in multiples thereof.
The basis of allotment is likely to be finalised on November 25 while the refunds may be initiated on November 26. The shares will be credited to the demat accounts of eligible allottees on November 29 while the shares will list on NSE and BSE on November 30.
Purpose of IPO
The proceeds from the fresh issue will be used to fund rollout of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.
"We feel that it is right time to go public. If we delay the public issue, we will be very late in our life. It is important that the company goes public at right time during its business cycle," said Go Fashion Executive Director and Chief Executive Officer Gautam Saraogi.
Saraogi said the company will follow a mix of online and offline for expansion. Currently, online contributes around five percent of its total sales.
"We want to scale it to 15 percent in the next 3-4 years through omni channels and new app, which we are going to launch," he said.
About the company
Go Fashion India, which was the first company to launch a brand exclusively dedicated to women's bottom-wear category, has a market share of about eight percent. As of September 30, 2021, Go Fashion had 459 EBOs located across 118 cities.
The company has raised capital twice to fund its retail journey. In 2014, it had raised Rs 60 crore from Sukoya Capital and in 2018, it raised Rs 100 crore from ICICI Ventures. According to Saraogi, the entire market size is Rs 13,500 crore in 2020 and is going to be Rs 24,000 crore by 2025.
-With PTI inputs
First Published: IST