Shares of Go Fashion (India) Limited, which owns women's wear brand Go Colors, made their stock market debut with a strong premium of 90% at ₹1,310 per share on the NSE as compared to its IPO issue price of ₹690 apiece. On the BSE, Go Fashion shares were trading at ₹1,316
The three-day initial public offering (IPO) of Go Fashion had received a whopping 135.46 times subscription on its last day of subscription that concluded on November 22. The ₹1,013.6-crore IPO received bids for 1,09,44,34,026 shares against 80,79,491 shares on offer.
“Go Colors has a sturdy brand value with fluctuating revenues while the company moved into losses in FY21. However, as the number of working women is increasing along with the evolving fashion trends it is expected that the company can have a strong growth momentum. The company has a strong management team with a mixed bag of financials and it is expected that it may perform well," said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The IPO got its debut with a gain of 89% to its issue price. The aggressive investors who got the allotment can put a stop loss of ₹1000 and hold the stock with a long-term view, while safe investors can book the profit and wait for new buying opportunities at the lower levels,
The initial share sale had a fresh issue of up to ₹125 crore and an offer for sale (OFS) of up to 12,878,389 equity shares. The price range for the public offer was at fixed at ₹655-690 per share. Go Fashion has raised a little over ₹456 crore from anchor investors, ahead of its IPO that had opened for public subscription on November 17.
Go Fashion is engaged in the development, design, sourcing, marketing and retailing a range of women's bottom-wear products under the brand, 'Go Colors'.
The proceeds from the fresh issue is aimed to be used to fund roll out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes. Its network of 459 EBOs (Exclusive Brand Outlets) are spread across 23 states and union territories in India, as of September 30, 2021.
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Go Fashion shares make bumper debut, nearly double from issue price - Livemint
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