The Indian Public Offering (IPO) for GO fashion has begun; bidding will be open until November 22nd, 2021. As a result, people interested in applying for the $1,013.61 crore public offering are scouring the company’s balance sheet for financial information. For such potential bidders, there is some good news. According to market experts, Go Fashion shares are currently selling in the grey market at a premium of $560, up to $30 from yesterday’s premium. In what has been a record year for firms going public, Go Fashion (India) Ltd., which owns the women’s bottom wear brand Go Colors, will sell shares for Rs 655-690 apiece in its initial public offering, which begins on November 17. Because of the long weekend, the initial share sale will expire on November 22.
The Chennai-based firm intends to raise Rs 1,013.6 crore by selling shares at the top of the price band. The IPO has been divided into two parts: a fresh issue of equity shares worth Rs 125 crore and an offer for sale worth Rs 888.6 crore, in which the promoters—PKS Family Trust and VKS Family Trust—will sell 7.45 lakh equity shares apiece. On Nov. 16, bidding for anchor investors began.
Sequoia Capital India (74.98 million shares), India Advantage Fund S4 I (33.11 million shares), and Dynamic India Fund S4 U.S. are among the investors. I am among those selling their shares (5.76 lakh shares). Its promoter stake would drop from 57.47 per cent to 52.78 per cent as a result of the issue. At the upper end of the pricing range, Go Fashion is looking for a market value of Rs 3,727 crore.
Go Fashion Founder and Chief Executive Officer Gautam Saraogi recently told the media that the company wants to open 2,000 exclusive brand locations in India in the next six to seven years. Following double-digit growth in FY19 and FY20, same-store sales growth for such stores decreased 37% year over year in pandemic-affected FY21. However, Saraogi stated that it has been gradually improving as demand normalises and bottom wear like leggings and palazzo become a must-have in every woman’s wardrobe.
As the number of working women and consumer spending power rises organised retailing’s share of women’s apparel increased from 19 per cent in FY15 to 27 per cent in FY20, and is predicted to reach 42 per cent by FY25. Bottom wear is expected to rise to Rs 24,300 crore in FY25 from Rs 13,500 crore in FY20, making it the fastest-growing segment in the women’s apparel market. Large national and regional firms such as TCNS (W, Aurelia, Elleven, and Wishful), Biba, Global Desi, Go Colors, AND, H&M, Zara, M&S, Fabindia, and Soch dominate the branded women’s apparel industry in India. It also faces competition from large format stores’ private in-house label brands. Among its peers, Go Fashion has the greatest return on capital employed. In FY20, it had a 32 per cent Ebitda margin, which was likewise among the highest.