01 December 2021, Mumbai:
Go Fashion, the operator of women’s bottom wear brand Go Colors, has made its stock market debut, listing at 89.85 per cent premium. Go Fashion plans to use the net proceeds from issue sale to open 120 new exclusive brand outlets for its brand Go Colors which retails women’s leggings, trousers, and other bottom wear and currently has 459 exclusive outlets. The business will also use its net proceeds for working capital requirements as well as general corporate purposes. Go Colors plans to continue its brick-and-mortar expansion into new geographies, expand online, and target customers in Tier I, II and III cities.
Go Fashion is the first company to launch a brand exclusively dedicated to the women’s bottom wear category. It is a play on the unorganised to the modern retail shift. At the upper end of the price band, it is valued at 9.4 times, 14.6 times EV/sales [enterprise value-to-sales] for fiscal year ’20, fiscal year ’21 respectively. Go Colors’ unique positioning as an exclusively bottom wear brand coupled with an increase in disposable income for women has aided its growth. However, its reliance on a single warehouse for its pan-India distribution and dependence on a single product category could cause problems.
