Sequoia-backed Go Fashion’s $136-mn IPO gets bids of $10 bn

 Sequoia-backed Go Fashion’s $136-mn IPO gets bids of $10 bn

Chennai-based womenswear maker Go Fashion (India) Ltd received a bumper response to its initial public offering with strong demand across all investor categories.

The public offering of 8.08 million shares, excluding the anchor portion, received bids for 1.09 billion shares. The book was subscribed 135.4 times at the end of the third and final day, stock exchange data showed.

This means that the IPO received bids for shares worth around Rs 75,497 crore ($10.15 billion) at the upper end of its price band of Rs 655-690 apiece.

The portion reserved for qualified institutional buyers (QIBs) recorded 100.7 times demand for the shares on offer. The quota reserved for non-institutional shareholders was covered 262 times. Retail investors bid for 49.5 times the shares set aside for them.

The IPO had sailed through on the first day and picked up pace on the second day with 6.87 times subscription. Last week, the company mobilised Rs 456.12 crore from anchor investors such as GIC, ADIA and Volrado Venture Partners.

The Rs 1,013 crore IPO comprises a fresh issue of Rs 125 crore and a secondary market sale by its promoters and investors including venture capital firm Sequoia Capital and private equity firm ICICI Venture.

In August, The Capital Quest reported that Sequoia and ICICI Venture were poised to score stellar returns in partial exits from the IPO.

JM Financial, DAM Capital Advisors (formerly IDFC Securities), and ICICI Securities are merchant bankers in charge of arranging and managing the share sale.

Incorporated in September 2010, Go Fashion is among the largest women’s bottom-wear brands in India with a market share of about 8% in the branded segment. It develops, designs, sources, markets and retails a range of women’s bottom-wear products under the brand ‘Go Colors’.

It primarily serves its customers through a network of 450 exclusive brand outlets including 15 company-owned company-operated kiosks. The company has presence in 23 states and union territories across India as of May 2021.

The company reported a loss of Rs 3.53 crore for the year ended March 2021 on revenue from operations of Rs 250.66 crore owing to the impact of lockdowns caused by the coronavirus pandemic.

For the year ended March 2020, the company reported a net profit of Rs 52.63 crore on revenue of Rs 392.01 crore.

Ankit Doshi

The Capital Quest