Go Fashion, CMS Info get SEBI nod to raise funds through IPO

Go Colors owned by Go Fashion India Limited and CMS Info Systems backed by Baring Private Equity filed their draft papers in August.

Go Fashion’s IPO includes a new issue of ₹125 crore and offer for sale of 12.88 million shares by its existing shareholders and promoters.

Established in 2010 by Vinod Saraogi and Prakash Saraogi, the OFS comprises 7.46 lakh shares each by PKS Family Trust and VKS Family Trust, 7.50 million shares by Sequoia Capital India Investments, 3.31 million shares by India Advantage Fund S4I. Up to 5.77 Lakh Shares by Dynamic India Fund S4 US I.

At present, PKS Family and VKS Family Trust hold 28.74 per cent. Sequoia Capital India Investments IV holds 28.73% stake, India Advantage Fund S4 I holds 12.69% stake and Dynamic India Fund S4 US I holds 1.1% stake in the firm.

The firm proposes to use ₹33.73 crore from proceeds towards financing 120 new Exclusive Brand Outlets (EBOs) in India during the financial years 2023 and 2023. As of May 2021, it had 450 EBOs in 115 cities.

It is also proposed to use ₹61.40 crore to meet working capital requirements. By June 2021, the total sanctioned limit of its working capital facilities ₹65 crores including fund-based and non-fund-based sub-limits.

The CMS Info Systems IPO consists of a pure offer to sell up to ₹2000 crore by Sion Investment Holdings Pte., an affiliate of Baring Private Equity Asia. Currently, Sion Investment Holdings holds 100% stake in the firm.

For more than a decade, CMS has been owned by private equity investors, first by Blackstone, which took a controlling stake in 2008, and later by Baring, which bought the company in 2015 for approx. ₹2,000 crores. CMS is involved in ATM and cash management, ATM installation, maintenance services and card personalization services.

This will be Baring’s second attempt to make the CMS public. In 2017, it had filed draft papers with the market regulator, but its 12-month approval period ended without launching an IPO.

Meanwhile, PKH Ventures Ltd. has withdrawn its IPO on October 28, said a Sebi release. The reason for the return is not given. The firm had filed draft papers to collect ₹500 crore through its IPO.