The IPO opened for subscription on November 17 in the price band of Rs 665 to Rs 690
The Initial Public Offer (IPO) of Go Fashion (India), which owns women’s wear brand Go Colors, opened for subscription on Wednesday, November 17. The company plans to raise Rs 1,014 crore through the share sale via this IPO, which is priced in the range of Rs 665 to Rs 690.
Meanwhile, on Tuesday the company raised Rs 455 crore from anchor investors through share allotment. It allowed 6.6 million shares at Rs 690 apiece. Government of Singapore, Abu Dhabi Investment Trust, Nomura, SBI MF and Axis MF are some institutional investors given allotment in the anchor category.
Here’s what the brokerages have to say about the IPO:
ICICI Securities
View: Unrated
According to the brokerage firm, the women’s apparel market is estimated to be around 36 per cent of the total apparel market, while the women’s bottom-wear market contributed 8.3 per cent of the women’s apparel market (Rs 13,547 crore). It expects the women’s apparel market to grow from Rs 1,63,291 crore in FY20 to Rs 2,53,733 crore by FY25.
Investment Rationale:
The company continues to expand its retail network with a focus on EBOs. Of the total proceeds from the share sale, around Rs, 33 crores will be utilized towards adding 120 new stores during FY23-24E.
Has the expertise to develop and design in-house products
It intends to further improve operating efficiency and enhance customer experience by leveraging technology.
Key Risks:
Dependence on a single brand, category
High store network concentration in southern, western India
Inability to protect its trademarks, including ‘Go Colors’
Dependence on outsourcing in absence of own manufacturing facilities
Dependence on single warehouse for pan-India distribution
No comments:
Post a Comment