Women's wear brand GoColors files DRHP for IPO
Premium- Go Colors' IPO consists of a fresh issue of ₹125 crore and an offer for sale of upto 12.88 million shares by its existing shareholders and promoters.
MUMBAI: Go Fashion India Ltd-owned Go Colors has filed draft papers with the Securities Exchange Board of India (Sebi) to raise funds via share sale.
The initial public offering (IPO) consists of a fresh issue of ₹125 crore and an offer for sale (OFS) of upto 12.88 million shares by its existing shareholders and promoters. These include upto 7.46 lakh shares each held by PKS Family Trust and VKS Family Trust, 7.50 million shares by Sequoia Capital India Investment, upto 3.31 million shares by India Advantage Fund S4 I and upto 5.77 lakh shares by Dynamic India Fund S4 US I.
The stakes of PKS Family and VKS Family Trust stand at 28.74%, each. Sequoia Capital India Investments IV holds 28.73% stake, India Advantage Fund S4 I has 12.69% stake and Dynamic India Fund S4 US I holds 1.1% stake in the firm.
JM Financial, DAM Capital Advisors and ICICI Securities are the lead managers on the issue.
The firm proposes to utilise ₹33.73 crore from proceeds towards funding roll out of 120 new exclusive brand outlets (EBOs) in India during fiscal year 2023 and 2023. As of May 2021, the company had 450 EBOs located across 115 cities.
It also proposes to utilise ₹61.40 crore to fund working capital requirements. As of June 2021, its total sanctioned limit of working capital facilities stood at ₹65 crore, including fund based and non-fund based sub limits.
Founded in 2010 by Vinod Saraogi and Prakash Saraogi, Go Fashion India is among the largest women’s bottom-wear brands in India, with a market share of approximately 8%. It 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 bottom-wear products, which include churidars, leggings, dhotis, harem pants, patiala, palazzos, culottes, pants, trousers and jeggings, are sold across multiple categories such as ethnic wear, western wear, fusion wear, athleisure, denims, plus sizes and girls wear making its portfolio ‘universal’ and for every occasion. As of 31 May, the company sold bottom-wear in over 50 styles in more than 120 colors.
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Go Colors' distribution channels include large format stores (LFSs) including Reliance Retail Ltd, Central, Unlimited, Globus Stores Pvt. Ltd and Spencer's Retail among others. As of May, the LFS count has grown to 1,332 from 925 in FY19.
For FY21, its revenue from operation was at ₹250.67 crore versus ₹392.01 crore a year ago. Net loss for the period stood at ₹3.54 crore against a profit of ₹52.63 crore last year.
The firm says that due to covid lockdowns imposed initially impacted its revenues, however, the demand for its products from online channels continued to remain strong. The sale of its product has increased by 17.26% to 2.56 mln units in FY21 from 2.18 million units a year ago.
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