Bumper debut of Go Fashion shares, almost double the issue price

three days Initial Public Offering (IPO) Go Fashion was subscribed 135.46 times on the last day of its subscription that ended on November 22 The IPO of Rs 1,013.6 crore received bids for 1,09,44,34,026 shares as against 80,79,491 shares on offer.

“Go Colors has a strong brand value with ups and downs in revenue while the company went into loss in FY2011. However, as the number of working women continues to grow, along with fashion trends, it is expected that the company may have a strong growth momentum. The company has a strong management team with a mixed bag of financials and is expected to perform well,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.

The IPO started with an increase of 89% in its issue price. Aggressive investors who get the allotment can put a stop loss 1000 and hold the stock with a longer term outlook, while safe investors can book profits and wait for fresh buying opportunities at lower levels,

The initial share sale had a new issue of up to 125 crore and offer for sale (OFS) of 12,878,389 equity shares. The price ceiling for the public offering was fixed 655-690 per share. Go fashion has picked up a bit 456 crore from anchor investors, ahead of its IPO which was open for public subscription on November 17.

Go Fashion is engaged in the development, design, sourcing, marketing and retailing of a range of Women’s Bottom-wear products under the brand ‘GO Colours’.

The proceeds from the new issue are to be used to fund the roll out of 120 new exclusive brand outlets to support working capital requirements and general corporate objectives. Its network of 459 EBOs (Exclusive Brand Outlets) is spread across 23 states and union territories of India as on 30th September, 2021.