Go Fashion (India) Ltd., a leading player in the women’s bottom-wear segment in India is all set to roll out its IPO on 17th November 2021 and will be open for subscription till the 22th November 2021. Under the brand name of ‘Go Colors’, the company markets its products through 450 exclusive brand outlets as well as large retailers like Reliance Retail Limited, Central, Unlimited, Globus Stores Private Limited, and Spencer’s Retail etc. Besides this the company also markets its products through its website and online shopping portals.
According to the Red Herring Prospectus, the proceeds from the IPO would be utilized by the company towards funding roll out of 120 new exclusive brand outlets, funding working capital requirement and general corporate purposes.
Some quick facts about the Go Fashion (India) IPO:
Price band of Go Fashion (India) IPO
The price band for the Go Fashion (India) is between Rs.655 to Rs. 690 per share.
Lot size
The minimum lot size for the Go Fashion (India) IPO is of 21 shares.
Issue size
The issue size for Go Fashion (India) is Rs. 1031 crores.
Listing date
Shares of Go Fashion (India) are likely to be listed on 30th November 2021.
Key strengths and opportunities
- A young and growing middle class with rising disposable income is expected to help India’s retail market to grow at CAGR of 6.23% to reach US$ 1,077 billion by FY25 from US$ 796 billion in FY20.
- Rise in aspirational buying as women have started becoming financially independent and started earning more from a young age.
- Widespread smartphone penetration with high speed internet and increased digital payments have given a boost to E-tailing making it convenient for women with less time to shop for apparels online.
Key factors to keep in mind while investing in the Go Fashion (India) IPO:
In its Red Herring Prospectus, the company has listed some factors which may impact the future performance of the company, such as:
- The company reported a loss before tax of ₹ 31.35 million in FY 2021 primarily on account of the impact of COVID-19 on its operations.
- The company operates in an industry which is fragmented and competes with several regional brands and retailers present in local markets across the country. Apart from intense competition from the unorganized sector, there is also competition from local retailers, non-branded products, economy brands, products of other established brands and from in-house brands launched by Large Format Stores (LSFs) through which the company retails its products.
- The massive growth of online retailers and current trends of discounting and pricing strategies may adversely affect the company’s pricing ability and the company’s results of operations and its financial condition.
To invest in the Go Fashion (India) IPO click here.
– Written and contributed by Pradeep Sukumaran.
