Go Fashion India, which operates the Go Colors brand, has filed for its initial public offering (IPO). The company is backed by ICICI Venture and Sequoia Capital India, the Indian subsidiary of the American venture capital firm.

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The company’s draft red herring prospectus (DHRP) with the Securities Exchange Board of India (SEBI) said, “The IPO consists (of) a fresh issue of shares for Rs 125 crore with an offer for sale by promoters PKS Family Trust and VKS Family Trust and the investors of Sequoia Capital India Investments IV, ICICI Venture’s India Advantage Fund Series 4 I and Dynamic India Fund S4 US I.”

The offer for sale will consist of 7.49 million shares from Sequoia, 3.31 million shares from ICICI Venture’s India Advantage Fund and another 576,684 shares from Dynamic India Fund. A total of 745,676 shares will be sold each by the PKS Family Trust and the VKS Family Trust.

The company sells women’s bottom wear like leggings and churidars, pants, jeggings, palazzos and loungewear with a market share of 8 percent in the market in FY20. Go Colors operates a network of 450 exclusive brand outlets, spread across 23 states and UTs. Fifteen kiosks are operated by the company while 11 others are franchise stores. The company’s clothes are also sold through its website platform and on other omnichannel outlets.

The bottom wear market in India is expected to grow to Rs 9,240 crore by 2025. Go Fashion India reported losses of Rs 3.54 crore with revenue of Rs 250.67 crore in FY21 after its business was impacted due to the COVID-19 lockdowns and restrictions. The company had reported a profit of Rs 52.63 crore in the FY20.

(Edited by : Shoma Bhattacharjee)