InvestorQ : Can you tell me how is the Go Fashions IPO capital going to be structured post the IPO?
Tisha Malhotra made post

Can you tell me how is the Go Fashions IPO capital going to be structured post the IPO?

Answer
image
Aashna Tripathi answered.
2 weeks ago
Follow

The IPO of Go Fashions, a specialist in women’s bottom-wear, will open for subscription on 17-Nov and close on 22-Nov. It is a combination of offer for sale (OFS) and fresh issue and here is how it will be structured overall in terms of the capital.

· The offer for sale will entail the sale of 1,28,78,389 shares by promoters and early investors and if you calculate the value of the OFS at the upper end of the price band of Rs.690, the OFS value is around Rs.889 crore. This portion will not dilute equity.

· Out of the above OFS of 1,28,78,389 shares, the company promoters will sell less than 15 lakh shares combined. Early investors; Sequoia Capital will offer 74.99 lakh shares, while India Advantage Fund and Dynamic India Fund will offer 5.77 lakh shares and 33.11 lakh shares respectively.

· The fresh issue component of the IPO will entail the issue of 18,11,594 equity shares and at the upper price band of Rs.690, the size of the fresh issue works out to Rs.125 crore. This takes the total size of the issue to Rs.1,014 crore. The fresh portion of Rs.125 crore will result in dilution of equity.

· On completion of the OFS and the fresh issue, the promoter’s stake in Go Fashions will reduce from 57.47% to 52.78%. Correspondingly, the public shareholding in the company post the IPO will stand enhanced to 47.21%.

I hope this answers your query.
0 Views