Go Fashion (India)-owned Go Colors has filed a draft red herring prospectus with capital marketplace regulator SEBI to launch an IPO. The concern comprises fresh concern of shares worth Rs 125 crore and an give for sale (OFS) of up to 1.28 crore shares by its current shareholders and promoters. The OFS will see promoting of up to 7.46 lakh shares every single held by PKS Family Trust and VKS Family Trust, 75 lakh shares by Sequoia Capital India Investment, up to 33 lakh shares by India Advantage Fund S4 I and up to 5.77 lakh shares by Dynamic India Fund S4 US I.
PKS Family and VKS Family Trust hold 28.74 per cent stake, every single. Sequoia Capital India Investments IV holds 28.73 per cent stake, India Advantage Fund S4 I has 12.69 per cent stake and Dynamic India Fund S4 US I holds 1.10 per cent stake in the firm. The book operating lead managers to the concern are JM Financial, DAM Capital Advisors and ICICI Securities. KFin Technologies Private Ltd will be the registrar to the concern.
Upon productive completion of its IPO, Go Colors will join the likes of Page Industries, Trent Limited, Bata India, Aditya Birla Fashion and Retail Ltd, and TCNS Clothing Company Ltd. The market P/E ratio stands at 106.35x and the weighted typical return on net worth at 7.76 per cent. The net proceeds will be utilised towards funding roll out of 120 new EBOs worth Rs 33.7 crore, funding working capital needs worth Rs 61.3 crore, and for common corporate purposes.
Go Colors reported net profit in the the monetary year 2018-19 of Rs 31 crore, which enhanced to Rs 52.6 crore in the monetary year 2019-20. However, in the covid struck earlier year the enterprise reported a net loss of Rs 3.54 crore. 75% of the whole concern of Go Colors will be reserved for certified institutional purchasers (QIB) whilst 15% would be kept for Non-Institutional Investors (NII). This would leave only 10% for retail investors to bid for.