Update:8-Feb – SEBI has approved Genesis Colors IPO
Genesis Colors Limited is a leading platform for luxury & premium fashion brands in India. (Satya Paul, Armani, Hugo Boss , Jimmy Choo etc)
Issue Details (not yet announced)
- IPO Open :
- Issue Price band:
- Issue Size:
- Market lot :
- Max Shares for Retail –
IPO Issue Allocation
- Qualified institutional buyers (QIBs) – 50% per cent of the total issue size.
- Non-institutional investors (NIIs) – 15% per cent of the issue size.
- The retail quota limit in the issue = 35%
Objective of the issue:
The objects of the net proceeds from the issue are:
- 1. Purchase of shares of Genesis Luxury Fashion Private Limited (a subsidiary) from Splendor distribution limited(Rs 280 crores)and Sanjay Kapoor (Rs 37 crores) and – Genesis colours holds 52% of the company.
- 2. General Corporate purpose.
Background:
Genesis Colors Limited is a leading platform for luxury & premium fashion brands in India.
Owned Brands – Satya Paul, Bw!tch with products across apparel, accesories, travel & lifestyle segments
Portfolio of Inrternational Luxury brands – Armani, Bottega Veneta, Burberry, Canali, Coach, Furla, Hugo Boss, Jimmy Choo, Michael Kors, Paul Smith, Tumi, Villeroy & Boch – rights to distribute their products across India.
There are 57 EBOs where International brands are sold, 43 of them are in 4 malls below:
- DLF Emporio Mall (Delhi)
- Palladium Mall (Mumbai)
- UB City Mall (Bangalore)
- Quest Mall (Kolkata)
Financials:
| 2014 (in crores) | 2016 | CAGR | |||
| Consolidated revenue from Operations | 360 | 432 | 9.6% | ||
| Revenue from International brands | 256 | 318 | 11.52% | ||
| Share of Total Revenue | 71% | 73% | 74% | ||
| Own Brands | 104 | 114 | 4.7% | ||
| Share of Total Revenue | 29% | 27% | 26% |
Revenue & profit / loss for last 5 years
| 2016 | 2015 | 2014 | 2013 | 2012 | |
| Total Revenue | 440 | 426 | 366 | 302 | 219 |
| P&L (attributable to equity shareholders) | (0.7) | (10.8) | (12.67) | (19.21) | (76) |
Promoters :
- Sanjay Kapoor & his trust hold 49% of the shares
- Sequoia Capital – 19.9%
- HEP Mauritius – 13.14%
- Mayfield FVCI – 8.5%
Competitors :
Anchor Investors: Will be known one day before the issue open
Valuation as compared to its peers:
Should you invest:
As the company is not in profit since last few years, I will avoid this IPO.
So on that basis, you can consider to invest for long term
Disclaimer: The articles or analysis on this website should not be constituted as Investment advice. Please consult your financial advisor before making any investments.