The Initial Public Offering (IPO) of Go Fashion (India) Limited will be open for subscription on Wednesday. The issue will be closing on 22 November. The company, which started operations in 2010, captured 8 per cent market share in the branded bottomwear in the women segment as of 2020. The company runs its flagship brand ‘Go Colors’.  

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Ahead of the launch, Zee Business Managing Editor Anil Singhvi talks to the company’s Executive Director (ED) and Chief Executive Officer (CEO) Gautam Saraogi. This is what the ED had to say on the upcoming issue.    

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The price band for Go Fashion IPO is Rs 655-690 per equity share with a lot size of 21 shares. The fresh issue is worth Rs 125 crore, while Offer for Sale (OFS) is worth Rs 888 crore. The promoters and existing shareholders are selling their shares. The minimum investment requirement us Rs 14990. 

Saraogi said that the company has been able to create a niche and one-stop shop for bottomwears for the ladies' segment. The company has presence in malls, airports and high streets, he added. The company has over 459 stores and 1300 large format shops giving it a pan-India presence, he added.  

The decision to stick to bottomwears has been deliberate and has been able to position the company in a niche space, he further added.  

On its future plans, the ED & CEO said that all the stores are company operated and the plans are to open more stores in a particular town or city to have a better management control. The model is on cluster-based approach. 

On revenues, he said that Go Fashion was growing at a CAGR of 30 percent in the pre-pandemic time. The Profit After Tax (PAT) has been consistently over 50 per cent, he pointed out.  The company has no debts.  

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The proceeds of Rs 125 crore from sale of fresh equity will go towards opening new stores. The company will be opening 120 new stores at a cost of Rs 31 crore, while Rs 60 crore will go towards working capital requirements. The remaining Rs 30 crore will be utilized for general corporate expenditures, he concluded.