Go Colours Operator Go Fashion India intends to raise funds through IPO
Go Fashion India, the operator of the women's wear brand Go Colors and backed by Sequoia and ICICI Venture, has filed draught documents with the capital markets regulator in order to raise funds through an initial public offering.
The IPO consists of a fresh issue of Rs 125 crore of shares and an offer for sale by promoters PKS Family Trust and VKS Family Trust, as well as investors Sequoia Capital India Investments IV, ICICI Venture's India Advantage Fund Series 4 I, and Dynamic India Fund S4 US I, according to the company's draught red herring prospectus filed with the Securities and Exchange Board of India.
Each of the PKS Family Trust and VKS Family Trust will sell 745,676 shares.
Sequoia Capital India will sell 7.49 million shares, India Advantage Fund 3.31 million shares, and Dynamic India Fund 576,684 shares.
In FY20, the company sold leggings and churidars, pants, jeggings, palazzos, and lounge wear, with a market share of about 8% in the branded women's bottom-wear market. The proceeds from the new share issue will be used to fund the rollout of 120 exclusive brand outlets as well as meeting working capital requirements, in addition to general corporate purposes.
Prakash Kumar Saraogi, Gautam Saraogi, Rahul Saraogi, PKS Family Trust, and VKS Family Trust are the company's promoters, with a 57.47 percent stake. Sequoia Capital India owns 28.73 percent, ICICI Venture owns 12.69 percent, and Dynamic India Fund, a Mauritius-based private equity fund, owns 1.1 percent.
Go Fashion has clothing in over 50 different styles and over 120 different colours. It creates, designs, sources, markets, and sells a line of women's bottom-wear products under the Go Colors brand. It is one of the few Indian apparel companies that has identified the market opportunity in this segment and has acted as a "category creator" for bottom-wear.
The company has 450 exclusive brand outlets spread across 23 states and union territories (including 15 kiosks operated and owned by the company and 11 franchise stores), giving it better operational control and greater store profitability.
Furthermore, the company sells its products through its own website, online marketplaces, and multi-brand outlets.
The share of organised retailing of women's apparel increased to 27 percent in FY20 from 19 percent in FY15 and is expected to rise to 42 percent by FY25 as a result of a growing female population, an increase in the number of working women, fashion trends, and rising consumer spending power.
The organised women's bottom-wear market is expected to reach Rs 9,240 crore in FY25, with a 38 percent share, and to grow at a CAGR of 24.3 percent until 2025.
Page Industries, Trent, Bata India, Aditya Birla Fashion & Retail, and TCNS Clothing Company are some of the listed competitors to Go Colors.
In FY21, Go Fashion India lost Rs 3.54 crore on revenue of Rs 250.67 crore, owing to the Covid-19 pandemic. Profit in FY20 increased by 70% to Rs 52.63 crore, while revenue increased by 37% to Rs 392 crore over the previous fiscal year.
The IPO consists of a fresh issue of Rs 125 crore of shares and an offer for sale by promoters PKS Family Trust and VKS Family Trust, as well as investors Sequoia Capital India Investments IV, ICICI Venture's India Advantage Fund Series 4 I, and Dynamic India Fund S4 US I, according to the company's draught red herring prospectus filed with the Securities and Exchange Board of India.
Each of the PKS Family Trust and VKS Family Trust will sell 745,676 shares.
Sequoia Capital India will sell 7.49 million shares, India Advantage Fund 3.31 million shares, and Dynamic India Fund 576,684 shares.
In FY20, the company sold leggings and churidars, pants, jeggings, palazzos, and lounge wear, with a market share of about 8% in the branded women's bottom-wear market. The proceeds from the new share issue will be used to fund the rollout of 120 exclusive brand outlets as well as meeting working capital requirements, in addition to general corporate purposes.
Prakash Kumar Saraogi, Gautam Saraogi, Rahul Saraogi, PKS Family Trust, and VKS Family Trust are the company's promoters, with a 57.47 percent stake. Sequoia Capital India owns 28.73 percent, ICICI Venture owns 12.69 percent, and Dynamic India Fund, a Mauritius-based private equity fund, owns 1.1 percent.
Go Fashion has clothing in over 50 different styles and over 120 different colours. It creates, designs, sources, markets, and sells a line of women's bottom-wear products under the Go Colors brand. It is one of the few Indian apparel companies that has identified the market opportunity in this segment and has acted as a "category creator" for bottom-wear.
The company has 450 exclusive brand outlets spread across 23 states and union territories (including 15 kiosks operated and owned by the company and 11 franchise stores), giving it better operational control and greater store profitability.
Furthermore, the company sells its products through its own website, online marketplaces, and multi-brand outlets.
The share of organised retailing of women's apparel increased to 27 percent in FY20 from 19 percent in FY15 and is expected to rise to 42 percent by FY25 as a result of a growing female population, an increase in the number of working women, fashion trends, and rising consumer spending power.
The organised women's bottom-wear market is expected to reach Rs 9,240 crore in FY25, with a 38 percent share, and to grow at a CAGR of 24.3 percent until 2025.
Page Industries, Trent, Bata India, Aditya Birla Fashion & Retail, and TCNS Clothing Company are some of the listed competitors to Go Colors.
In FY21, Go Fashion India lost Rs 3.54 crore on revenue of Rs 250.67 crore, owing to the Covid-19 pandemic. Profit in FY20 increased by 70% to Rs 52.63 crore, while revenue increased by 37% to Rs 392 crore over the previous fiscal year.
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