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Genesis Colors IPO Details & Review – Opening date, Price Band, Opening Price

genesis-ipo

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:

The company has losses over last 4-5 years (on consolidated basis)
No comparable listed companies in India
 
 
Brokerage Recommendations:
   
   
   

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.

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