IPO News: Go Fashion (India) company Go Colors has filed DRHP with SEBI for its IPO. Through the IPO, the company will issue new shares worth 125 crore, while existing shareholders and promoters will sell 1.28 crore equity shares. Under the offer for sale, PKS Family and VKS Family Trust will sell 7.46 lakh shares while Sequoia Capital will sell 75 lakh equity shares. India Advantage Fund S4 I will sell 33 lakh shares while Dynamic India Fun S4 US I will sell 5.77 lakh shares.
PKS Family and VKS Family Trust hold 28.74 per cent stake in the company. At the same time, Sequoia Capital and Investmet IV hold 28.73 percent stake. JM Financials, DAM Capital Advisors and ICICI Securities are the Lead Managers for its book running.
10% reserve for retail investors
75 per cent of Go Colors IPO is reserved for QIBs. 15 per cent is earmarked for NIIs and only 10 per cent for retail investors. Once listed, Go Colors will also join the ranks of Page Industries, Aditya Birla Fashion and Retail and TCNS Clothing Company Ltd. The company will start 120 new EBOs of Rs 33.7 crore from the funds raised from the IPO. Along with this, working capital of Rs 61.3 crore and other corporate requirements will also be met.
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Company’s performance on the financial front
In the financial year 2018-19, the net profit of Go Colors was Rs 31 crore crore, which reached Rs 52 crore in the financial year 2019-20. However, it suffered due to COVID. It had a net loss of Rs 3.54 crore in the financial year. 75 per cent of the IPO of Go Colors is reserved for QIBs. 15 per cent is earmarked for NIIs and only 10 per cent for retail investors.