Economy

Shares of Go Fashion became nearly double from issue price – bumper debut

On the NSE, shares of Go Fashion (India) Limited, which owns the women’s fashion brand Go Colors, debuted with a high premium of 90 percent at 1,310 rupees per share, compared to its IPO issue price of 690 rupees per share. Go Fashion shares were trading at 1,316 on the BSE.

On the last day of subscription, November 22, Go Fashion’s three-day initial public offering (IPO) garnered a stunning 135.46 times subscription. There were offers for 1,09,44,34,026 shares in the 1,013.6-crore IPO, compared to 80,79,491 shares on offer.

“Go Colors has a strong brand value, but revenues are fluctuating, and the company is losing money in FY21.” However, as the number of working women grows in tandem with changing fashion trends, the company is projected to maintain a solid development trajectory. Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “The company has a good management team with a mixed bag of financials, and it is likely to perform well.”

The IPO debuted with an 89 percent increase in its issue price. The adventurous investors who received the allotment can set a stop loss of $1,000 and hold the stock for the long term, while the safe investors can take a profit and look for future purchasing chances at lower prices.

There was a fresh issue of up to 125 crore and an offer for sale (OFS) of up to 12,878,389 equity shares in the initial share sale. The public offer’s price range was set at $655 to $690 per share. Go Fashion has secured a little over Rs 456 crore from anchor investors ahead of its first public offering, which began on November 17.

Under the brand ‘Go Colors,’ Go Fashion is involved in the development, design, sourcing, marketing, and retailing of a variety of women’s bottom-wear goods.

The proceeds from the new offering will be used to fund the opening of 120 new exclusive brand locations, as well as to meet working capital needs and other general company reasons. As of September 30, 2021, its network of 459 EBOs (Exclusive Brand Outlets) is distributed over 23 Indian states and union territories.

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