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Go Fashion IPO: Everything you need to know

Go Fashion IPO: The Rs 1,013.6 crore initial public offering (IPO) of Go Fashion (India) is available from November 17-22, 2021. It has a price band of Rs 655-690 per share.

By: Express Web Desk | New Delhi |
November 19, 2021 3:21:56 pm
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Go Fashion IPO: The initial public offering (IPO) of Go Fashion (India), which owns women’s wear brand Go Colors, opened for subscription on Wednesday, November 17, 2021. The offer got fully subscribed within hours of opening on the first day of bidding. So far it has been subscribed 6.87 times.

It has received total bids for 5,55,12,051 shares across both the stock exchanges against 80,79,491 shares on offer, data from the BSE showed.

The Rs 1,013.6 crore Go Fashion IPO will be available for subscription till Monday, November 22, 2021, and the price band of the company has been fixed at Rs 655-690 per share.

The IPO comprises fresh issue of equity shares aggregating up to Rs 125 crore and an offer for sale (OFS) of up to 12,878,389 equity shares by promoter and existing shareholders.

Through the 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.

Currently, PKS Family and VKS Family Trust hold 28.74 per cent stake each in the company, 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 in the firm.

The net proceeds from the fresh issue will be used to fund the roll-out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.

Investors who wish to subscribe to Go Fashion IPO can bid in a lot of 21 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,490 to get a single lot of Go Fashion (India). The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants also must note that the cut-off time for UPI mandate confirmation is Tuesday, November 23, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

JM Financial, DAM Capital Advisors and ICICI Securities are the book running lead managers to the offer while KFin Technologies is the registrar of the issue.

Go Fashion (India) is engaged in the development, design, sourcing, marketing and retailing a range of women’s bottom-wear products under the brand, ‘Go Colors’. 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.

Before heading into the IPO, Go Fashion (India) raised over Rs 456 crore (Rs 4,56,12,39,480) from 33 anchor investors in lieu of 66,10,492 equity shares at Rs 690 each, data from the stock exchanges showed.

The anchor investors include the likes of Government of Singapore, Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Fidelity, SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Axis MF, Aditya Birla Sun Life MF and SBI Life Insurance Company among others.

The research teams at Geojit Financial Services and IIFL Securities in their respective IPO notes have recommended a “Subscribe” to the offer.

Geojit Research in its IPO report said, “At the upper price band of Rs 690, GFIL is available at M-cap/sales of 14.9x (FY21) which appears fully priced. However, considering GFIL’s investment in digital channels, omnichannel engagement, focus on E-retail, distributive growth strategy to tap customers from tier 1 to tier 3 cities and expansions plans for existing and newer geographies, we assign a “Subscribe” rating for the issue on a long-term basis.”

The share allotment is likely to take place on Thursday, November 25, 2021, and the shares are expected to be listed on Tuesday, November 30, 2021, according to the timeline given in the red herring prospectus (RHP).

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