Go Fashion raises ₹456 cr from anchor investors ahead of IPO

Market


Ahead of its initial public offering (IPO) rollout on Wednesday, Go Fashion, which owns women’s wear brand Go Colors, today said it has raised a little over 456 crore from anchor investors.

The company has decided to allocate a total of 66,10,492 equity shares to 33 anchor investors at 690 apiece, aggregating the transaction size to 456.12 crore, according to a circular uploaded on the BSE website.

Government of Singapore, Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Fidelity, SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Axis MF, Aditya Birla Sun Life MF and SBI Life Insurance Company are among the anchor investors.

Go Fashion’s IPO comprises a fresh issue of equity shares aggregating up to 125 crore and an offer for sale (OFS) of up to 12,878,389 equity shares by promoter and existing shareholders.

The three-day initial share-sale will open for public subscription on November 17 and conclude on November 22.

The issue has a price band of 655-690 a share. At the upper end of the price band, the IPO is expected to fetch 1,013.6 crore.

As per market observers, Go Fashion shares in the grey market today have surged and commanding a strong premium of 540. The shares of the company are expected to list on stock exchanges BSE and NSE on November 30, 2021.

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% stake each in the company, Sequoia Capital holds 28.73% stake, India Advantage Fund has 12.69% stake and Dynamic India Fund owns 1.1% stake in the firm.

The proceeds from the fresh issue will be used to fund the roll-out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.

About 75% of the issue size has been reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors, while the remaining 10% 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.

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