Go Fashion IPO subscribed 2.46 times on day one

The initial public offering (IPO) of Go Fashion India Ltd, the operator of GoColors, was subscribed 2.46x on Wednesday, the first day of the issue due to strong retail participation.

Retail investors who cannot invest more 2 lakh per person, subscribed 12.14 times out of the 1.47 million shares on offer, the data showed.

Strong first day subscription by retail amid 72% premium in unofficial gray market. The price band prescribed for the issue was as follows 655-690 per share and is being quoted at a current gray market premium 500 per share, said a dealer.

Stock exchange data shows that at 5.30 pm, the overall issue attracted bids for 19.90 million shares against the issue size of 8.08 million shares.

The institutional investor category was subscribed 0.25 times, while the non-institutional category was subscribed 0.44 times by high net worth individuals.

The IPO is valued at 14.6x FY21 EV-to-sales, which looks at par with Trent, but at a significant premium to Aditya Birla Fashion & Retail (ABFRL). Trent and ABFRL are considered better than Go Fashion (GFL) in most of the parameters.

“However, the share of organized retail sales within women’s apparel has increased from 19% in FY15 to 27% in FY15, and is expected to reach 42% by FY25E, primarily due to the growing female population. , due to the increasing number of working women, evolving fashion trends, and increasing spending power of consumers. Notably, women’s bottom-wear is the fastest growing category in the women’s apparel segment, and in FY15 Rs. 135bn to Rs.243bn in FY25E. This provides healthy growth visibility for GFL in the long run”, Reliance Securities said in a note to its investors.

Meanwhile, Tarson Products Limited’s IPO was subscribed 77.49 times on the last day of the issue. Retail investors applied 10.56 times. The institutional investor category was subscribed 115.77 times, while the non-institutional category was subscribed 184.58 times by high net worth individuals.