(Risk takers/ Cash surplus investors May Subscribe)
| Issue Size- 1.47 crore shares | Issue Open/Close – Nov 17/Nov 22, 2021 |
| Price Band (Rs) 655- 690 | Issue Size- Rs 9.68-10.13 bn |
| Face Value (Rs) 10 | Lot Size (shares) 21 |
Incorporated in 2010, Go Fashion (India) Ltd is one of the largest women’s bottom-wear brands in India. The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women’s bottom-wear products under the brand, ‘Go Colors’. The company offers one of the widest portfolios of bottom-wear products among women’s apparel retailers in terms of colors and styles. As of May 31, 2021, Go Colors sold bottom-wear in over 50 styles in more than 120 colors.
As of May 31, 2021, the company has 450 exclusive brand outlets (EBOs) that are spread across 23 states and union territories in India. The company’s distribution channels include large format stores (LFSs) including Reliance Retail Limited, Central, Unlimited, Globus Stores Private Limited, and Spencer’s Retail among others. The company’s LFSs have grown from 925 LFSs in 2019 to 1,332 LFSs in May 2021. The company also sells its products through its website, online marketplaces, and multi-brand outlets (MBOs).
Valuation
The company has suffered due to the pandemic and posted negative earnings for the last 15 months. Due to negative earnings, its PE cannot be ascertained. The Company has aggressive expansion plan to increase outlets from 450+ to 2000+ in the coming five to six years. The company hopes to be on track once full normalcy returns and regain its growth pattern on pre-pandemic lines. Its dependence on third party contracts remains a major concern. Risk seekers, cash surplus investors may Subscribe from a longer-term perspective.
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