IPO Alert - Go Fashion IPO

Go Fashion (India) Limited IPO

Issue Offer
Issue Opens on Nov 17, 2021
Issue Close on Nov 22, 2021
Total IPO size (cr) 1013.61
Fresh issue 125
Offer For Sale (cr) 888.61
Price Band (INR) 655-690
Market Lot 21
Face Value (INR) 10
Retail Allocation 10%
Listing On NSE, BSE
Issue Break-up (%)
QIB Portion 75
NIB Portion 15
Retail Portion 10
Shareholding (No. of Shares)
Pre Issue 52,197,390
Post Issue 54,008,984
Indicative Timetable
Finalisation of Basis of




Credit of equity shares to

DP A/c

Trading commences 30-11-2021

SME IPO of Go Fashion gathers a lot of attention as the company Go Fashion (India) Limited 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’.

The company offers one of the widest portfolios of bottom-wear products among women’s apparel retailers in terms of colors and styles. It is among the few apparel companies in India to have identified the market opportunity in women’s bottom-wear and have acted as a ‘category creator’ for bottom-wear.

It was the first company to launch a brand exclusively dedicated to women’s bottom-wear category and have leveraged this advantage to create a direct-to-consumer brand with a diversified and differentiated product portfolio of premium quality products at competitive prices. The company’s bottom-wear products, which include churidars, leggings, dhotis, harem pants, Patiala, palazzos, culottes, pants, trousers and jeggings, are sold across multiple categories such as ethnic wear, western wear, fusion wear, at leisure, denim, plus sizes and girls wear making their portfolio ‘universal’ and for every occasion.

    • The women’s apparel market is estimated to be approximately 36% of the total apparel market while the women’s bottom-wear market contributed 8.3% of the women’s apparel market in Fiscal 2020
    • The women’s clothing market in India has evolved in the past decade from traditional one-piece apparel to two-piece and mix-and-match apparel, with bottom-wear becoming an essential
    • The company serve its customers primarily through its extensive network of 459 EBOs (Exclusive Brand Outlets) that are spread across 23 states and union territories in India, as of September 30, 2021.
    • The company have its in-house design and merchandising team that designs and develops bottom-wear products across categories with their deep understanding of consumers’ requirements.

Financials and Outlook

The company has mixed set on financials over the last three years where the company’s revenue grew in FY20 and fell back in the year FY21. However, the fall in revenue can be due to COVID-19. Profit also turned negative in a recent year where the company reported a loss of Rs (3.53) cr in FY21 VS a profit of Rs 52.63 cr in FY20. Go Colors has a strong brand value but has fluctuating revenues and the company moved into losses in FY21 but as the number of working women is increasing along with the evolving fashion trend it is expected that the company has strong growth momentum. The company has a mixed bag of financials and IPO is arriving at a P/BV of 13.65 based on its NAV of Rs. 50.56 as of Q1FY22, which seems to be attractively priced for the investors. Thus, we assign a “SUBSCRIBE” rating for listing gain and long term.


    • Prakash Kumar Saraogi is the Managing Director of the Company. He is a promoter of the Company and has over 28 years of experience in garment manufacturing, fashion industry and retail industry.
    • Gautam Saraogi is an Executive Director and the Chief Executive Officer of the Company. He is also a promoter of the Company and has over 10 years of experience in consumer retail, marketing, brand building and garment
    • Rahul Saraogi is a Non-Executive Director of the Company. He is a promoter of the Company and has over 10 years of experience in the garment industry.
    • Ravi Shankar Ganapathy Agraharam Venkataraman is a Non-Executive Nominee Director of the Company. He has over 15 years of experience in private equity funds.
    • Srinivasan Sridhar is the Chairperson of the Company’s Board and an Independent Director of the Company He has over 38 years of experience in commercial and development banking and is an associate of the Indian Institute of Bankers.
    • Rohini Manian is an Independent Director of the She has over 8 years of experience in real estate and management space.
    • Dinesh Madanlal Gupta is an Independent Director of the Company. He has over 37 years of experience in the transport and manufacturing industry.
    • R Mohan is the Chief Financial Officer of the He has been associated with the company since April 16, 2019.
    • Gayathri Venkatesan is the Company Secretary and Compliance Officer of the company. She has been associated with the company since October 25, 2019.


    • Largest women’s bottom-wear brand in India with well-diversified product
    • Multi-channel pan-India distribution network with a focus on EBOs, enhancing brand visibility
    • Strong unit economics with an efficient operating model
    • Extensive procurement base with highly efficient and technology-driven supply chain management
    • In-house expertise in developing and designing products
    • Demonstrated track record of strong financial performance
    • Continue to expand retail network with a focus on EBOs
    • Leverage technology to bring cost efficiency and enhance customer experience


    • A major part of the issue is the offer for sale which would go to selling share
    • The company carries operations from a single warehouse located in Southern India which could be a geographical limitation
    • The company has incurred losses for FY21 for Rs 5 Crores and revenues also declined.
    • Covid-19 pandemic has impacted the company and it might continue to impact future
    • Dependency on the third party for the major operational part such as transportation and manufacturing

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