ICICI Venture divests partial stake in Go Fashion

ICICI Venture, the alternative asset arm of ICICI Bank, on Tuesday said it has divested half of its 13.5 per cent stake in the recently concluded IPO of Go Fashion (India) Ltd, which owns women’s wear brand Go Colors.

ICICI Venture, through its fourth private equity fund India Advantage Fund Series 4 (IAF4), had invested Rs 100 crore in Go Fashion for 13.5 per cent stake in 2018.

Through the stake dilution, the alternative asset firm made five times return in its investment made in Go Fashion, ICICI Venture said in a statement.

The initial public offering (IPO) of the company had received a strong response from investors with the issue being oversubscribed 135 times.

The company had a strong listing on the exchanges on Tuesday and based on the listed share price, the residual stake of IAF4 in the company is valued at around nine times, it added.

“We are pleased to have supported the company in its growth journey of the last 4 years, during which Go Fashion emerged as India’s largest women’s legwear brand, achieved 3x growth in owned store footprint, an excellent revenue scale up and increase in profit margins. We believe the company is well placed for further growth going forward,” said Puneet Nanda, MD and CEO, ICICI Venture.

Earlier this year, another IAF4 portfolio company, Krishna Institute of Medical Sciences or KIMS Hospitals, also had a successful IPO.

In 2019, ICICI Venture had successfully exited from Star Health and Allied Insurance from two of its PE funds to a consortium of financial and strategic investors.

ICICI Venture has had a successful track record of exits having successfully concluded over 70 exit deals worth about USD 2.25 billion in the last decade. This is believed to be amongst the highest exit tallies in India.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor