Will add stores, introduce more women’s bottomwear products: Go Fashion
One of India's largest bottomwear brands Go Fashion makes a blockbuster debut on D-street and lists at Rs 1,316. The IPO was subscribed 135 times and the company has raised Rs 456 crore via anchor investors. To discuss the listing, the plans and outlook for the business going forward, CNBC-TV18 spoke to Gautam Saraogi, ED and CEO of Go Fashion.
Shares of Go Fashions listed at Rs 1,316, almost twice its issue price of Rs 690. The IPO had been subscribed a massive 135 times, proving wrong many pundits who had predicted that the Paytm debacle would make investors wary of new offerings. At its peak during the day, Go Fashions shares changed hands at Rs 1,341 apiece.
The Rs 1,013.6-crore IPO was issued at a price range of Rs 655-690 per share. The company is engaged in the development, design, sourcing, marketing and retailing of a range of women's bottomwear products under the brand 'Go Colors'.
Speaking to CNBC-TV18, Gautam Saraogi, ED and CEO of Go Fashion, said, “A future strategy is going to do to keep the same things which are going right for us, keep doing those things which we have we have executed well, keep adding stores, keep adding new products under bottom there. So that is going to be one of our future strategies of keeping things very simple.”
He said, “We started in 2011. We have evolved from kiosks to stores and today we have a network of about 459 stores across 118 cities. So we have a large retail network have you built a very strong direct to consumer brand we have positioned ourselves well in this niche category of women's bottom wear which is growing at a very fast speed.”
On growth, Saraogi said, “As we are in this highly unorganised business, which is moving towards the organised channel, we are having huge tailwind so we feel we will be able to maintain good growth levels in the years to come.”
He added, “Gross margins in fiscal year 2020 was close to 60 percent. So our margins even pre-pandemic has been very, very consistent at a gross margin and PAT level. As a business to a large extent had recovered in the financial year 2021 we see these margins coming back pretty swiftly.”
-With PTI inputs
For full management commentary, watch the video.
(Edited by : Bivekananda Biswas)
First Published: Nov 30, 2021 2:40 PM IST
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