2021 has been a record year for companies turning public. Go Fashion (India) Ltd, a leading women’s bottom-wear brand based in Chennai, has launched its IPO today— Nov 17. The company holds a nearly 8% market share in the branded women’s bottom-wear market in India. Let us take a closer look into the company and learn more about its IPO.

Company Profile – Go Fashion (India) Ltd

Incorporated in 2010, Go Fashion (India) Ltd (GFIL) 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. GFIL’s products include leggings, dhotis, harem pants, palazzos, pants, and jeggings. Their products are sold across multiple categories such as ethnic wear, western wear, athleisure, denim, and fusion wear.

GFIL is the first company to launch a brand exclusively dedicated to women’s bottom-wear category. It has leveraged this first-mover advantage to create a direct-to-consumer (D2C) brand with a diversified product portfolio of premium quality products at competitive prices. As of September 30, 2021 (Q2 FY22), Go Fashion sold bottom-wear in over 50 styles in more than 120 colors. The company’s products cater to women across all age groups and body types/physiques. 

The company operates ~459 exclusive brand outlets (EBOs) across 23 states and union territories in India. Its distribution channels include large format stores (LFSs) such as Reliance Retail, Central, Unlimited, Globus Stores, and Spencer’s Retail. As of September, they operate around 1,270 LFSs. Go Fashion also sells products through its website, online marketplaces, and multi-brand outlets. GFIL has announced plans to increase the number of outlets to over 2,000+ in the next 5-6 years.

About the IPO

Go Fashion’s public issue opens on November 17 and closes on November 22. The company has fixed Rs 655-690 per share as the price band for the IPO

The fresh issue of shares (of the face value of Rs 10 each) aggregates to Rs 125 crore. The IPO also includes an offer for sale (OFS) of 1.28 crore equity shares by promoters and early investors. Individual investors can bid for a minimum of 21 equity shares (1 lot) and in multiples of 21 shares thereafter. You will need a minimum of Rs 14,490 (at the cut-off price) to apply for this IPO. The maximum number of shares that can be applied by a retail investor is 273 equity shares (13 lots).

Go Fashion (India) will utilise the net proceeds from the IPO for the following purposes:

  1. Funding the rollout of 120 new exclusive brand outlets- Rs 33.73 crore
  2. Funding working capital requirements- Rs 61.39 crore
  3. General corporate purposes

The total promoter holding in the company will decline from 57.47% to 52.78% post the IPO.

Financial Performance

Go Fashion (India) reported a net loss of Rs 3.5 crore for the financial year ended March 2021 (FY21), compared to a profit of Rs 62.63 in FY20. It can be attributed to the impact of the Covid-19 pandemic. Its total income declined 28.8% YoY to Rs 282.25 crore in FY21. The company was forced to shut down its physical sales channels, including stores, kiosks at malls, and franchise stores. The exclusive brand outlets and large format stores contribute 69% and 22%, respectively, to the total revenue.

GFIL’s net loss widened to Rs 18.99 crore in the quarter ended June 2021 (Q1 FY22) from Rs 8.59 crore in Q1 FY21. They were affected by lockdowns amidst the second wave of the Covid-19 pandemic and higher operational expenses. Now, the company is focusing on improving its online business to drive sales. GFIL plans to invest more in digital channels as part of its strategy to build an omnichannel engagement experience. Revenue from online channels has grown at a CAGR of 82.2%.

Interestingly, GFIL has a better track record of revenue growth, higher operating margins, and higher return on capital employed (ROCE) compared to its peers.

Risk Factors

  • The inability to effectively market its products and brand, or any deterioration in public perception of ‘Go Colors’ could lead to a fall in customer footfall and adversely affect its operations and financial performance.
  • GFIL is prone to risks associated with the locations of its exclusive brand outlets (EBOs). Further, the company derives a majority of its sales from EBOs in southern and western India. Any adverse developments affecting the operations in these regions can harm its overall business.
  • Go Fashion (India) carries out its operations from a single warehouse located in south India. Any disruption in the operations of this warehouse could have a severe impact on its business and financial results.
  • The inability to adequately protect its trademarks and intellectual property rights could adversely affect its business operations.
  • The failure to anticipate and respond to changes in fashion trends and changing consumer preferences in a timely and effective manner could severely impact its overall operations.
  • There is uncertainty surrounding the continuing impact of the Covid-19 pandemic on its operations.

IPO Details in a Nutshell

The book-running lead managers to the public issue are DAM Capital Advisors, ICICI Securities, and JM Financial Consultants. Go Fashion (India) Ltd had filed the Red Herring Prospectus (RHP) for its IPO on November 9, 2021. You can read it here.

Ahead of the  IPO, GFIL raised Rs 456 crore from 33 anchor investors. The marquee investors include the Govt of Singapore, Nomura, Abu Dhabi Investment Authority, Fidelity, SBI Mutual Fund (MF), ICICI Prudential MF, etc.


The women’s clothing market in India has evolved over the past decade. According to a report by Technopak (a consultancy firm), the share of organized retailing within women’s apparel is likely to increase from 27% in FY20 to 42% by FY25. This rapid growth can be attributed to an increase in the number of working women, evolving fashion trends, and rising disposable income. Moreover, women’s bottom-wear is the fastest-growing category in the women’s apparel market segment. GFIL’s strength lies in its well-diversified portfolio, efficient & technology-driven supply chain, and in-house design & development capabilities. One could invest in the company based on its long-term growth prospects.

However, GFIL can be adversely affected by any kind of slowdown in consumer spending and increased competition from other players in the market. GFIL will be directly competing with leading firms such as Page Industries, Trent Ltd, Bata India, Aditya Birla Fashion & Retail, and TCNS Clothing once it gets listed. 

The company has received a lot of interest in the grey market. GFIL’s IPO shares are trading at a Grey Market Premium (GMP) of Rs 560. Before applying, we will wait to see if the portion reserved for institutional investors gets oversubscribed. As always, consider the risks associated with the company and come to your own conclusion.

What are your views on this IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.