Go Fashion (India) Ltd IPO

Closed

Subscription Details

  • Open Date 17 Nov
  • Close Date 22 Nov
  • Lot Size 21
  • IPO Size ₹ 1,013.61 Cr
  • IPO Price Range ₹ 655 to ₹ 690
  • Min Investment ₹ 14,490
  • Listing Exchange BSE, NSE

Go Fashion (India) Ltd IPO Timeline

Open Date
17 Nov
Close Date
22 Nov
Basis of Allotment
25 Nov
Refunds
26 Nov
Credit to Demat Account
29 Nov
Listing Date
30 Nov

IPO Synopsis

Go Fashion India Ltd (Go Colours) IPO will open for subscription between 17 November to 22 November, with the listing date set as 30 November.

A price band of Rs.655-Rs.690 has been set with a minimum investment amount as Rs.14,490 (21 shares). The issue size is of Rs.1,013.61 crore with a fresh issue of  Rs.125 crore and OFS of 12,878,389 equity shares. The IPO is expected to raise around Rs.800 crore.

The company promoters are Prakash Kumar Saraogi, Gautam Saraogi, Rahul Saraogi, Pks Family Trust and Vks Family Trust (selling 7,45,676 equity shares). The book running lead managers are JM Financial, DAM Capital Advisors and ICICI Securities.

Objectives of the issue:

1. The proceeds of the IPO will fund 120 new exclusive brand outlets
2. For the funding of working capital requirements.

Go Fashion (India) Ltd IPO Subscription Status

 

Category Subscription Status
Qualified Institutional (QIB) 3.24 Times
Non-Institutional (NII) 2.30 Times
Retail Individual 24.64 Times
Employees N.A
Total 6.87 Times

 

Go Fashion (India) Ltd IPO Subscription Details (Day by Day)

 
Date QIB NII Retail Employees Total
November 17, 2021 17:00 1.25x 0.44x 12.14x N.A 2.46x
November 18, 2021 17:00 3.24x  2.30x  24.64x  N.A 6.87x 

About Go Fashion (India) Ltd

Go Fashion Ltd, incorporated in 2010 is one the leading women’s bottom wear brand, in the country. The company has a very wide portfolio and the company sold more than 50 styles in 120 colours, as of May 31, 2021.

Brand Outlets -

The company has around 450 brand outlets that span across 23 states and union territories. Big - names like Reliance Retail Ltd, Globus Stores Private Ltd and Spencer’s Retail are a part of the company’s distribution network.

Go Fashion Products -

The company has a huge range of bottom wear products including -

1. Churidars
2. Leggings
3. Dhotis
4. Harem Pants
5. Patiala etc.

The products are sold across various categories like ethnic wear, western wear, denims, athleisure etc.

The company makes products for girls of all shapes and sizes which in turn makes the portfolio universal in nature. It is one of the few apparel companies in the country that has shone as a “category creator”. They have created a new segment called the bottom wear segment. Go Fashion operates under the brand name of Go Colours which is a very popular brand among girls and women of every age.

Pks and Vks family trust currently hold 28.74% stake in the company. Sequioa Capitals holds 28.73% stake and India Advantage Fund holds around 12.69%. Dynamic India holds 1.1% stake in the company.

Go Fashion India (Go Colours) Financials

 

PARTICULARS

FY 21 (Rs. mn)

FY 20 (Rs. mn)

FY 19 (Rs. mn)

FY 18 (Rs. mn)

Revenue

2,507

3,920

2,852

1,887

EBITDA

463

1265

800

347

Net Income

-35

526

309

206

Gross Margin %

63.2

66.9

66.9

67.2

 

Revenue has shown a growth of 51.1% in FY19 and a 37.4% growth in FY20 but largely due to the loss of sales during the pandemic, the revenue fell by 36.1% in FY21. EBITDA margins fell from 32.3% in FY20 to 18.5% in FY21. 

 

PARTICULARS

FY 21 (Rs mn)

FY 20 (Rs mn)

FY 19 (Rs mn)

FY 18 (Rs mn)

Net Worth

2,829

2,863

2,283

1,970

Total Debt

104

28

83

26

Share Capital

790

790

790

590

 

Dupont Analysis:

PARTICULARS

FY 21

FY 20

FY 19

FY 18

Profit Margin (%)

(1.4)

13.4

10.8

10.9

Asset Turnover (x)

0.5

0.8

0.9

0.9

Equity Multiplier (x)

1.9

1.8

1.5

1.1

ROE (%)

(1.3)

20.5

14.5

10.4

 

Ratio Analysis

PARTICULARS

FY21

FY20

FY19

FY18

EV/EBITDA (x)

80.9

29.8

46.1

101.7

ROCE (%)

-3.3

14.7

12.3

14.8

P/B(x)

12.7

12.6

15.8

18.3

EPS(Rs/share)

-0.7

10.1

5.9

3.9

 

The company has reported revenue CAGR of 44%, EBITDA CAGR of 91% and PAT CAGR of 60%. In FY20 the working capital days of Go Fashion stood at 141 with the help of 52 receivable days.  69% of the sales of this company, in FY21, are from the Exclusive Brand Outlets. The revenue from the Muti Brand Outlets stood at a small 3% of the FY20-21 revenue. Go Fashion has opened over 350 EBOs and 400 LFSs in the last three years. The large size of the EBOs also allow for safe social distancing and a better shopping experience. 

The share of organized retailing within women's apparel has shown an increase from 19 percent in FY15 to 27 percent in FY20, and is further expected to reach 42 percent by FY25. 


Conclusion:

The price range of Rs.655-690 seems fair given all the positives that we have come across. It would be beneficial for investors to subscribe to this IPO as the company’s core category products and their gross margin ratios remain positive. 


 


Key Points

  • Key Points

    1. The GMP today is Rs.225 per share i.e. the amount of profit available on each share of Go Fashion is Rs.225. 1 lot of shares has 21 shares and so the full GMP amounts to Rs.4,725
    2. The post issue shareholding has been reported as 52.78%
    3. The retail quota has been set at 10%

  • Strengths

    1. Among the largest women’s bottom wear companies in the country with a market share of 8% in FY20.
    2. A huge and diversified portfolio of products.
    3. The development and designing of new products is done in-house.
    4. A very efficient business model.
    5. A strong procurement and supply chain.

  • Risk factors

    1. Risks that are inherently associated with opening exclusive brand outlets
    2. The stores of the company are only concentrated in West and South India. A higher market penetration should be undertaken
    3. They operate out of one single warehouse in South India
    4. The company is unable to change with the changing trends. It takes longer than usual to churn out products as the trends keep changing
    5. Incurred losses in FY21

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

Contact Details of Go Fashion (India) Ltd IPO

Contact Information

Address

Go Fashion (India) Limited

Sathak Center, 5th Floor,
New No. 4, Old No. 144/2,
Nungambakkam High Road, Chennai, Tamil Nadu 600 03
Phone: +91 44 4211 1777
Email: companysecretary@gocolors.com
Website: https://www.gocolors.com/

Go Fashion (India) Ltd IPO Register

Address

KFintech Private Limited

Phone: 04067162222, 04079611000
Email: gofashion.ipo@kfintech.com
Website: https://karisma.kfintech.com/

Go Fashion (India) Ltd IPO Lead Manager

DAM Capital Advisors Ltd (Formerly IDFC Securities Ltd)

ICICI Securities Limited

JM Financial Consultants Private Limited