Go Fashion (India) Ltd, which owns women’s wear brand Go Colors, on Friday said it has fixed a price band of Rs 655-690 a share for its Rs 1,014 crore initial public offering (IPO).
The three-day initial share-sale will open for public subscription on November 17 and conclude on November 22. The bidding for anchor investors will open on November 16, the company announced in a virtual press conference. The IPO comprises fresh issue of equity shares aggregating up to Rs 125 crore and an offer for sale of up to 12,878,389 equity shares by promoter and existing shareholders.
Under 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.
At the upper end of the price band, the IPO is expected to fetch 1,013.6 crore. Proceeds from the fresh issue will be used to fund roll out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes. Go Fashion said that 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, while the remaining 10 per cent has been set aside for retail investors.
Investors can bid for a minimum of 21 equity shares and in multiple thereof. The company 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.
Its bottom-wear products, including 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 and plus sizes. JM Financial, DAM Capital Advisors (formerly IDFC Securities) and ICICI Securities are the lead managers to the issue. The equity shares will be listed on BSE and NSE.
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