Go Fashion IPO

Go Fashion (India)Limited is highlighting early adopters in several retail sectors who have become household names in their respective fields. A first mover has a strategic edge by being the first to market with a product or service, and may develop and define the class as well as the rules of play, which other competitors often follow as the market grows. Go Fashion IPO will hit the market in 17 November 2021.

About Go Fashion Limited

Go Fashion (India) Limited was established in 2011. It was the first brand to specialise on women’s bottom-wear and offer a large selection of high-quality goods. spans ethnic, fusion, western, and other styles, as well as segments including churidars, leggings, jeggings, denim, and linen bottom-wear.

It operates in a largely unorganised, high-growth market for women’s bottom-wear, with rising consumer demand for organised retail and a structural shift toward branded goods in this developing segment.

Market Segment

It is well set to build up its company and seize market growth, with consumer choice migrating towards the structured sector and first mover benefit in this area.

Go Colors is now one of the few women’s apparel stores that sells bottom-wear in all categories, including ethnic, western wear, fusion, and denims, and has one of the broadest bottom-wear product lines in the industry.

Due to its high main product sections and SKUs, Go Colors is less sensitive to fluctuations in fashion trends than most of its peers. Furthermore, goods are not seasonal.

Business Model

So because average selling price is around 600 rupees, it is affordable to people from all walks of life in India, and the nature of the offers ensures that the items are well-received.

Refinement of the item development cycle – Go Colors has gone via 44 product development phases since its start, including establishing vendors, order quantities, colours, and the whole supply chain.

They’ve been able to achieve economies of scale and a working capital advantage that future competitors would find tough to match.

Go Colors provided a new choice of consistent quality at a cheap price, something they did not have previously due to the unorganised market.

Journey

The brand has been present in various retail locations for ten years, focusing on EBOs, which has helped it build brand equity and connect with consumers.

With its B&M presence, its own website, and existence on marketplaces as well as sector experts, the brand has taken a multi-channel strategy and is aggressively using technology to boost growth.

With over 30 distinct product styles, it is a major participant in India’s female’s bottom-wear industry. Go Colors started a trend that other brands adopted, such as Rupa with their “Softline Leggings” and Lux with their “Lux Lyra” bottom-wear lines.

TCNS followed suit, launching the Elleven brand in Fiscal 2020.

Go Fashion IPO

Go Fashion Limited, headquartered in Navi Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 125 crore & 12,878,389 equity shares on 12 August 2021.

The Offer includes 125 Crore value fresh equity shares and There is an offer for sell(OFS) of 12,878,389 Crores value equity shares by the promoters mentioned in the DRHP.

They got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market on 02 Nov 2021.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-21	31-Mar-20	31-Mar-19
Total Assets		548.37	519.19	404.13
Total Revenue		282.25	396.84	290.98
Profit After Tax		(3.54)	52.63	30.94

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	(0.68)	(0.68)	3
Financial Year 2020	10.08	10.08	2
Financial Year 2019	5.93	5.93	1
Weighted Average	4.01	4.01

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are some of the basic criteria and key strengths that contribute into determining the Offer Price:

1. With a well-diversified item range and first mover benefit, it is one of India’s biggest female’s bottom-wear brands.
2. Brand exposure is improved through a multi-channel pan-India distribution network with an emphasis on EBOs.
3. Unit economics are strong, and the operational model is efficient.
4. Procurement base is extensive, and supply chain management is extremely productive and technology-driven.
5. Product development and design skills in-house.
6. Excellent financial efficiency has been demonstrated in the past.

Go Colors IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Page Industries Limited	106.35
2	1	Trent Limited	N/A
3	5	Bata India Limited	N/A
4	10	Aditya Birla Fashion & Retail Limited	N/A
5	2	TCNS Clothing Company Limited	N/A

Go Fashion IPO Details

IPO Opening Date	17 November 2021
IPO Closing Date	22 November 2021
Issue Type	Book Building
Face Value	10 per  share
IPO Price	655 to 690 per equity share
Market Lot	21
Min Amount	INR 14,490
Listing At	BSE, NSE
Issue Size	1,013.61 Crores
Fresh Issue	125 Crores
Offer for Sale	12,878,389 Equity Share

Go Fashion IPO Date

Go Fashion IPO opening date is 17 November 2021, and the closing date is 22 November 2021. The issue may list in 30 November 2021.

IPO Opening Date	17 November 2021
IPO Closing Date	22 November 2021
Basis of Allotment Date	25 November 2021
Initiation of Refunds	26 November 2021
Credit of Shares to Demat Account	29 November 2021
IPO Listing Date	30 November 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum level of 1 lot, based on availability, for every shareholder.

Go Fashion IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Go Fashion IPO.

Go Fashion IPO GMP

Go Fashion IPO Grey Market Premium is 488.

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
29 November 2021	488	2800	300
28 November 2021	476	2500	250
27 November 2021	456	4700	450
26 November 2021	423	4200	400
25 November 2021	415	3700	350
18 November 2021	565	4500	450
17 November 2021	550	3200	300
16 November 2021	525	6600	650
15 November 2021	402	5800	600
14 November 2021	365	5200	500
13 November 2021	No Trade	No Trade	No Trade
12 November 2021	No Trade	No Trade	No Trade

Go Fashion IPO Review

The answer to your question Go Fashion IPO is good or bad is you can apply with a long term view. Although, if you are looking for listing gains, you will also able to get good listing gain in this IPO.

Go Fashion IPO Risk

• The present and ongoing COVID-19 epidemic has had a severe impact on their company and operations.
• They are subject to all of the risks that come with leasing real estate, and any negative events might have a significant impact on their business.
• Their inability to manage or develop their retail network efficiently may have a negative impact on their business.
• Their private brand stores’ current sites may become unappealing, and appropriate replacement locations may not be available at all, let alone at a fair price.
• Their firm is the subject of ongoing legal actions. Any negative outcome in such actions might be damaging to their brand.

Other Threats

• In fiscal year 2021, we lost money. Their firm may suffer if they continue to experience net losses in the future.
• Any flaw in their quality assurance procedures might have a negative impact on their business.
• For the supply of raw materials and delivery of their goods, they rely on third-party transportation companies.
• They may not be able to expand their business into new domestic markets, which might harm their commercial prospects.
• Their sector is competitive, and their inability to compete successfully might harm their company.
• Internal control system failures might result in operational mistakes, which could have a negative impact on their profitability.

Products

As of July 2021, they are amongst the most diverse portfolios of bottom-wear goods among women’s apparel stores in India in terms of colours and designs.

Their bottom-wear products, which involve churidars, leggings, dhotis, harem pants, patiala, palazzos, culottes, pants, trousers, and jeggings, are sold in a variety of sections, including ethnic wear, western wear, fusion wear, athleisure, denims, plus sizes, and girls wear, making their profile ‘universal’ and suitable for any occasion.

They offered bottom-wear in over 50 designs and 120 colours as of May 31, 2021. They provide items for women of all ages and girls, with fits that are appropriate for a variety of body shapes and physiques.

Network

As of May 31, 2021, they offer their consumers mainly through their large network of 450 own brand outlets (“EBOs”) (containing 15 COCO kiosks and 11 franchise shops) distributed throughout 23 states and union territories in India.

Their cluster-based strategy to opening and running EBOs enables them to follow the COCO model, which results in improved operational control and store profitability. Retailing through EBOs, in their expertise, improves brand memory.

High streets, malls, and residential market zones in metropolitan areas, urban centers, and other tier II and tier III cities, as well as airports, house their EBOs.

Growth

In addition, large format shops (LFSs) such as Reliance Retail Limited, Central, Unlimited, Globus Stores Private Limited, and Spencer’s Retail are one of their distribution networks.

Their LFSs have expanded from 925 LFSs as of March 31, 2019 to 1,419 LFSs as of March 31, 2020, and then to 1,267 LFSs as of March 31, 2021, with 1,332 such shops as of May 31, 2021.

They also offer their products via multi-brand outlets (“MBOs”), as well as their individual website and online marketplaces.

Go Colors IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Go Fashion IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
17 November 2021	1	0.25	0.44	12.14	N/A	2.46
18 November 2021	2	3.24	2.30	24.64	N/A	6.87
22 November 2021	3	100.73	262.08	49.70	N/A	135.46

Promoters

• Prakash Kumar Saraogi
• Gautam Saraogi
• Rahul Saraogi
• PKS Family Trust
• VKS Family Trust

Promoters’ Holding

Pre Issue Share Holding	57.47%
Post Issue Share Holding