Go Colors Files DRHP with SEBI for IPO; Eyes 125 crore

Go Fashion India Ltd, subsidiary Go Colors, has filed Draft Red Herring Prospectus (DHRP) with the Securities Exchange Board of India (SEBI) to secure funds through a share sale.

The initial public offering (IPO) comprises a fresh issue of 125 crore and an offer for sale (OFS) of up to 12.88 million shares by its existing shareholders and promoters. These include up to 7.46 lakh shares each held by PKS Family Trust and VKS Family Trust, 7.50 million shares by Sequoia Capital India Investment, up to 3.31 million shares by India Advantage Fund S4 I, and up to 5.77 lakh shares by Dynamic India Fund S4 US I.

The shares of PKS Family and VKS Family Trust stand at 28.74 percent, each. Sequoia Capital India Investments IV holds a 28.73 percent stake, India Advantage Fund S4 I has a 12.69 percent stake and Dynamic India Fund S4 US I holds a 1.1 percent stake in the firm.

JM Financial, DAM Capital Advisors, and ICICI Securities are the lead managers on the issue.

The firm proposes to utilize 33.73 crore from proceeds towards funding the rollout of 120 new exclusive brand outlets (EBOs) in India during the fiscal year 2023. As of May 2021, the company had 450 EBOs located across 115 cities.

It also intends to utilize 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.

Being established in 2010 by Vinod Saraogi and Prakash Saraogi, Go Fashion India has evolves as the largest women’s bottom-wear brands in India, with a market share of approximately eight percent. 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'.

Go Colors' distribution channels that consist of large format stores namely Reliance Retail Ltd, Central, Unlimited, Spencer's Retail, and Globus Stores Pvt. Ltd, among others.