Go Fashion IPO opens on Nov 17, price band fixed at Rs 655-690, check other details

The Rs 1,013.61 crore initial public offer (IPO) of Chennai-based Go Fashion is set to hit the stock market on November 17. Here are nine things that you should know about the IPO.

Open and close date: The offer will open for subscription on November 17 and the bidding will close on November 19. The anchor book, if any, will open for a day before the issue opening i.e., November 18.

Price band: The price band for the textile company has been fixed at Rs 655-690 per share having a face value of Rs 10 per share.

Lot size: Investors can bid for a minimum of 21 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,490 at the higher end of the price band. A retail investor can at max apply for 13 lots or 273 shares for Rs 1,88,370.

Issue size: The Rs 1,013.61 crore public offer comprises fresh issuance of equity shares of Rs 125 crore, and an offer for sale (OFS) of 1,28,78,389 shares totalling to Rs 888.61 crore by by promoters and an investor.

As a part of the OFS, promoters — 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.

Objective of issue: The company will utilise net proceeds of fresh issue towards rolling out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.

What’s in it for retail investors: Not more than 75% of the total offer has been reserved for qualified institutional buyers, up to 10% for retail investors, and the rest 15% for non-institutional buyers.

About the company: Go Fashion (India) Limited is one of the largest women’s bottom-wear brands in India. The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women’s bottom-wear products under the brand, ‘Go Colors’.

As of May 31, 2021, the company had 450 exclusive brand outlets (EBOs) that are spread across 23 states and union territories in India. The company’s distribution channels include large format stores (LFSs) including Reliance Retail Limited, Central, Unlimited, Globus Stores Private Limited, and Spencer’s Retail among others..

On the financial front, the company’s revenues fell to Rs 282.25 crore in FY21 compared to Rs 290.97 crore in FY19. While the company reported a net loss of Rs 3.53 crore in FY21 compared to a profit of Rs 30.94 crore posted in FY19. Whereas for the Q1FY22 it posted a loss of Rs 1.89 crore on revenues of Rs 40.29 crore.

Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are DAM Capital Advisors (Formerly IDFC Securities), ICICI Securities and JM Financial Consultants. The registrar to the issue is KFintech.

Issue timeline: The issue is likely to finalize the basis of allotment by November 25, and the initialization of refunds will take place by November 26. While the credit of equity shares to depository accounts of the allottee will be done on November 29. The company is expected to make its stock market debut on November 30, 2021.