Go Fashion, designer, marketer and retailer of women's bottom wear under 'Go Colors' brand, to launch its IPO for subscription on November 17, has announced its price brand at Rs 655 – 690. The bid opens on Wednesday 17th November and closes on Monday 22nd November.
“Going public will give us the visibility and as a listed company, it will take us to the next level,” says Gautam Saraogi, CEO, Go Fashion India.
Reportedly, the company aims to garner Rs. 1,013.6 crore through its public issue that consists of a fresh issue of Rs. 125 crore and an offer for sale of Rs. 888.6 crore by selling shareholders including promoters - PKS Family Trust, & VKS Family Trust. Also, 52-52.5 percent is the promoter holding, the company stated.
On how the IPO will affect the company’s business strategy, Saraogi said, “We believe in consistency and sticking with what has worked with almost no experimentation.” In fact, the company claims that the look, feel and consistency of design is the same everywhere across all outlets.
Women's bottom-wear (WBW) is among the fastest-growing categories, growing at a CAGR of 12.4 percent to reach RS. 24, 315 crores by FY25. Over the years, the WBW market has been highly organized (77 percent share of unorganized in FY20), with limited options for consumers to access branded products of consistent quality.
Founded in 2010, Go Fashion started selling its products through Kiosks and opened 80 kiosks by 2014. However, they realized the kiosks are unsustainable from the size and price perspective. In 2020, the company crossed the 400th store milestone with a presence across 100 cities.
The company informs that it allocates 2-3 percent of revenue on the advertising spends and has the highest revenue-generating per advertising spends.
Go Fashion attributes the following strategies as reasons behind the growth of the company over the 10-year-period: growing sales through online channels, continuing to expand retail network with a focus on EBOs, leveraging technology to bring cost efficiency and enhance customer experience.
Going forward, “We are going to have a strong outsourcing model,” says Saraogi.