Go Fashion (India) Limited, which owns the women’s wear brand Go Colors, has fixed a price band of 655-690 per share for this 1,014-crore Initial Public Offering (IPO), The three-day initial share sale will open for public subscription on November 17 and end on November 22.
Go Fashion’s IPO comprises a fresh issue of equity shares, totaling up to Rs. 125 crore and offer for sale (OFS) of 12,878,389 equity shares by the promoter and existing shareholders.
According to market observers, Go Fashion shares have surged in the gray market today and are commanding a strong premium 540. The shares of the company are expected to be listed on the stock exchanges BSE and NSE on 30th November, 2021.
Go Fashion India has a better track record of revenue growth, higher operating margin and higher return on equity as compared to TCNS Clothing Company. Taking into account all the positive factors, we believe this assessment is at an appropriate level. As such, we recommend a subscription rating on this issue,” Angel One said in a note.
Established in 2010, Go Fashion (India) Limited is one of the largest women’s bottom-wear brands in India. The company is engaged in the development, design, sourcing, marketing and retailing of a range of women’s bottom-wear products under the brand ‘Go Colours’.
Go Fashion Brand Outlets (Exclusive Brand Outlets or EBOs) are spread across 23 states and union territories of India as on 30th September, 2021. As of September 30, 2021, Go Fashion had 459 EBOs in 118 cities.
“We believe the company’s core range of products, high gross margin and return ratio are positive,” Anand Rathi said in a note. The risk of having more COVID-19 cases likely; Dependence on a single brand and category and intense competition.
The proceeds from the new issue will be used to fund the roll out of 120 new exclusive brand outlets to support working capital requirements and general corporate objectives.
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