Go Colors' operator Go Fashion India to raise funds with IPO
Womenswear brand Go Colors’ operator Go Fashion India has filed draft documents for an initial public offering and will use the proceeds from the fresh share issue to fund the opening of 120 exclusive-brand outlets.
The IPO includes a fresh issue of shares for Rs 125 crore ($18.8 million) as well as an offer for sale by various promoters and investors, Moneycontrol reported. The business is backed by Sequoia and ICICI Venture and filed its draft red herring prospectus with the Securities and Exchange Board of India.
The business plans to utilise the funds it expects to raise through the fresh share issue to open 120 stores across India as it continues to expand its brick-and-mortar footprint in the country. The funds will also be used to meet its working capital requirements and fund general corporate projects.
Go Colors retails a range of women’s ethnic wear, fusion wear, and casual wear. The brand’s USP is that it offers its styles in over 120 colours and focuses on leggings, palazzos, and jeggings among other bottoms. Shoppers can match the brand’s bottoms to their clothing of choice thanks to its wide colour selection.
The brand currently has a network of 450 retail outlets across 23 cities and Union territories. The brand also retails through its dedicated e-commerce store, on multi-brand e-commerce platforms, and in multi-brand stores across the country.
In the 2021 financial year, Go Colors reported a loss of Rs 3.54 crore with revenue totalling Rs 250.67 crore, citing the pandemic as a reason for this loss. In the 2020 financial year, the brand had seen its profit rise by 70% to Rs 52.63 crore.
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