Go Vogue IPO opens tomorrow

Go Fashion IPO opens tomorrow | 10 key things to know about public issue including grey market premium, risks & concerns

© Shweta Mungre
Go Vogue IPO opens tomorrow | 10 key issues to find out about public subject together with gray market premium, dangers & issues

Go Vogue, the operator of ladies’s bottom-wear model Go Colours, could be the fifty-third public subject launched this week, after Tarsons Merchandise.

Listed here are 10 key issues to know earlier than subscribing to Go Colours:

1) IPO Dates

The preliminary share sale of the corporate will open for subscription on November 17 and the supply will shut on November 22. The time limit has been prolonged due to the market vacation on Friday for Gurunanak Jayanti.

The bidding by anchor buyers for anchor e-book opened for a day on November 16. The small print of anchor buyers who invested in an IPO will probably be disclosed by the corporate in a separate launch within the night on the identical day.

2) IPO Worth Band

The supply value band has been mounted at Rs 655 to Rs 690 per fairness share.

3) Provide Particulars

The general public subject contains a recent issuance of shares value Rs 125 crore, and a proposal on the market of greater than 1.28 crore fairness shares by promoters and buyers.

Promoters PKS Household Belief and VKS Household Belief are going to dump 7,45,676 fairness shares every through supply on the market. Amongst buyers, Sequoia Capital India Investments IV will promote 74,98,875 fairness shares, India Benefit Fund S4 I’ll offload 33,11,478 fairness shares, and Dynamic India Fund S4 US I’ll promote 5,76,684 fairness shares.

4) Fund Elevating and Goals of Problem

The supply will fetch the corporate Rs 968.53 crore at cheaper price band and Rs 1,013.6 crore on the higher value band.

The corporate will utilise internet proceeds from recent subject for funding roll out of 120 new EBOs (unique model retailers); working capital necessities; and basic company functions. Nonetheless, the supply on the market cash will go to promoting shareholders.

Click on Right here For Newest Tarsons Merchandise IPO Subscription Knowledge

5) Lot Measurement and Traders’ Reserved Portion

Traders can bid for no less than 21 fairness shares and in multiples of 21 fairness shares thereafter. Consequently, retail buyers could make a minimal funding of Rs 14,490 per lot and the utmost funding could be Rs 1,88,370 for 13 heaps.

As much as 75 % of complete supply is reserved for certified institutional consumers, 15 % for non-institutional buyers, and the remaining 10 % for retail buyers.

6) Firm Profile and Business Pattern

Go Vogue’s model Go Colours has a market share of roughly 8 % within the branded ladies’s bottom-wear market in India in FY20, serving prospects primarily by means of its in depth community of 459 EBOs (together with 12 kiosks operated on a ‘firm owned and firm operated’ (COCO) mannequin and 11 franchise shops) which are unfold throughout 23 states and union territories in India, as of September 2021.

Additionally learn – Sapphire Meals IPO share allotment possible immediately; examine newest gray market premium, itemizing date

The ladies’s attire market is estimated to be roughly 36 % of the full attire market and the ladies’s bottom-wear market fashioned 8.3 % of ladies’s attire market in FY20.

The share of organised retail inside ladies’s attire has elevated from 19 % in FY15 to 27 % in FY20 and is predicted to succeed in 42 % by FY25. The organised share of ladies’s bottom-wear market is predicted to succeed in Rs 9,240 crore in 2025, with its 38 % market share in FY25 rising at a CAGR of 24.3 %.

The corporate additionally sells its merchandise by means of distribution channels together with massive format shops; personal web site and on-line marketplaces and thru multi-brand retailers (MBOs).

7) Financials

Sale by means of unique model retailers contributed 68.92 % to complete income, massive format shops 22 %, on-line 4.76 % and the remaining contribution of 4.31 % to income was by MBOs and others.

Additionally learn – Each day Voice | Investing in a ‘scorching’ IPO simply out of FOMO can hurt your portfolio, says Atanuu Agarrwal of Upside AI

Go Vogue posted a lack of Rs 3.54 crore in FY21 towards a revenue of Rs 52.63 crore in FY20, impacted by COVID19-led lockdowns. Income was Rs 250.66 crore for FY21, a fall from Rs 392.01 crore within the earlier yr.

The loss within the quarter ended June 2021 widened to Rs 18.99 crore from Rs 8.59 crore in the identical interval final yr, partly attributable to second-wave-led statewide lockdowns and better operational bills. Nonetheless, the corporate elevated its income to Rs 30.99 crore from Rs 10.3 crore on quarter-on-quarter foundation by focussing extra on on-line enterprise.

8) Promoters and Administration

Prakash Kumar Saraogi, Gautam Saraogi, Rahul Saraogi, PKS Household Belief, and VKS Household Belief are promoters of the corporate, proudly owning a complete of 57.47 % within the firm. The remainder is held by buyers.

Amongst buyers, Sequoia Capital India Investments IV holds 28.73 % stake within the firm, adopted by India Benefit Fund S4 I with 12.69 % and Dynamic India Fund S4 US I with 1.1 %.

Promoter Prakash Kumar Saraogi is the managing director of the corporate, having over 28 years of expertise in garment manufacturing, trend business and retail business.

Promoter Gautam Saraogi is an government director and the chief government officer of the corporate, having over 10 years of expertise in shopper retail, advertising, model constructing and garment manufacturing.

Promoter Rahul Saraogi is a non-executive director of the corporate, having over 10 years of expertise within the garment business.

Ravi Shankar Ganapathy Agraharam Venkataraman is the non-executive nominee director (nominee of Sequoia Capital India Investments IV), Srinivasan Sridhar is the chairperson and unbiased director, Rohini Manian is the unbiased lady director, and Dinesh Madanlal Gupta can also be the unbiased director on the board.

R Mohan is the chief monetary officer of the corporate. He’s a chartered accountant by occupation and has been related to the corporate since April 16, 2019.

9) Dangers and Issues

ICICI Direct has highlighted some key dangers and issues together with the corporate’s dependence on single model and class, excessive retailer community focus in southern and western India, and dependence on single warehouse for pan-India distribution.

In line with Angel One, the rise in competitors, and slowdown within the financial system might influence the general income of the corporate.

The corporate sells all its merchandise beneath a single model, ‘Go Colours’. “An incapability to successfully market the merchandise and model, or any deterioration in public notion of the model, might have an effect on buyer footfall and consequently adversely influence the enterprise, monetary situation, money flows and outcomes of operations,” says Marwadi Monetary Providers.

The brokerage additional says firm could also be unable to adequately defend the emblems, together with ‘GO GOLORS’ and, and an incapability to guard or use the mental property rights could adversely have an effect on the enterprise.

10) GMP, Itemizing Date

Go Vogue will finalise the share allotment of its IPO by November 25 after which provoke refunds of cash to unsuccessful buyers on November 26.

Eligible buyers will get shares of their demat accounts by November 29 and the buying and selling in these fairness shares will start with impact from November 30, on the BSE & NSE.

Presently its shares can be found at Rs 940-1,040 per share within the gray market, an official buying and selling platform to commerce in IPO shares with the announcement of value band until the itemizing of shares on the bourses. This resulted into a gray market premium of Rs 250-350 or 36-51 % over the higher value band of Rs 690 per share, as per the IPO Watch and IPO Central.

JM Monetary, DAM Capital Advisors, and ICICI Securities are the e-book operating lead managers to the supply.

Disclaimer: The views and funding suggestions expressed by funding consultants on Moneycontrol.com are their very own and never that of the web site or its administration. Moneycontrol.com advises customers to examine with licensed consultants earlier than taking any funding selections.