Go Fashion, a brand operated by Go Colors got listed on the exchanges today, on 30th November 2021, with a massive 90 percent premium over its issue price. The Go Fashion shares were allotted at Rs. 690 per unit to the subscribers.
At 10 AM, the shares of Go Fashion got listed on both, Bombay Stock Exchange and National Stock Exchange. At the BSE, they made a debut at Rs. 1316 whereas on the NSE they listed at Rs. 1310. The investors who were allotted shares made a listing gain of around 90 percent over the issue price paid at the time of subscribing.
Subscription Status of Go Fashion IPO
Go Fashion IPO was launched on 17th November 2021 and closed on 22nd November 2021 with 135.5 times subscription on the final day of offering. The following table shows the subscription data for all the days when the offer was open.
17th Nov 2021
18th Nov 2021
22nd Nov 2021
|Qualified Institutions||0.25 times||3.24 times||100.73 times|
|Non-Institutional Investors||0.44 times||2.3 times||262.08 times|
|Retail Investors||12.1 times||24.64 times||49.7 times|
|Total||2.5 times||6.9 times||135.5 times|
The offer of Go Fashion received an overwhelming response from investors, with non-institutional investors bidding for over 262 times more shares than the portion allotted to them. Retail investors also bid for over 49 times more shares than the reserved portion.
Key Highlights About The Listing
Go Fashion is a leading women’s bottom-wear brand. It offers a wide variety of products under the Go Colors brand. The company’s outlets are located in various cities across India.
The company raised over a billion Rupees through its public issue, which included a fresh issue of over a hundred and twenty-five crores and an offer for sale of over Rs. 880 cr. The funds will be used to expand the company’s operations and meet working capital requirements.
Most analysts had given a “buy” rating to the issue of Go Fashion due to its robust growth, attractive returns, and multi-channel distribution network.
Whether you have invested or are planning to invest in the shares of Go Fashion, a study about its financials is something you must consider. Here are the comparative financial records of the company for the two preceding financial years.
|FY 2019-20||Rs. 13,489.37 mn||Rs. 10,812.35 mn||Rs. 11,799.29 mn||Rs. (998.97) mn|
|FY 2020-21||Rs. 13,806.64 mn||Rs. 13,517.36 mn||Rs. 14,183.28 mn||Rs. (1,592.47) mn|
The revenue of the company had witnessed significant growth on a Year-on-Year basis. However, the expenditure to earn that additional revenue also increased, increasing the net loss on a YoY basis. As of May 31, 2021, Go Fashion has 450 exclusive brand outlets across India. The company mainly distributes its products through its large format stores and multi-brand outlets.
Did the Go Fashion IPO meet D-Street expectations?
After considering the grey market price and premium, the experts from the industry analyzed Go Fashion IPO shares to list somewhere between Rs. 1150 to Rs. 1200 with around 70% premium. However, the listing of Go Fashion shares beat the estimates by listing above the analysts’ expectations.
Who are the key promoters of Go Fashion?
Prakash Kumar Saraogi, Rahul Saraogi, Gautam Saraogi, VKS family trust, and PKS family trust are the key promoters of the company.
What was the grey market price in the morning right before Go Fashion shares got listed?
The grey market premium at around 9 AM on 30th November 2021, one hour before the listing, was Rs. 495. The price at which they were trading in the grey market was Rs. 1185.