Go Fashion IPO Listing: The maiden initial public offering or IPO of Go Fashion India Limited, which sells women’s bottomwear, received stellar response from bidders when it closed earlier this month. The listing of Go Fashion IPO is set to be listed on Tuesday, November 30. The public offer will be listed at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on the day. The maiden offer of Go Fashion was oversubscribed 135.46 times during the three-day bidding procedure, amid strong demands from non institutional investors. The finalisation of basis of share allotment of Go Fashion IPO was done a day back.
Go Fashion IPO Price Band, Key Details
The Go Fashion IPO, which was open between November 17 to 22, comprises of fresh proceeds worth Rs 888.60 crore and an offer for sale (OFS) worth Rs 125 crore. The price band for the initial public offer is Rs 655-690 per equity share. The company will not receive any proceeds from the OFS part of the offer.
The share allotment of Go Fashion IPO was fixed on Friday, and the ones who got the shares will get credit to their demat accounts on Monday, November 29. The application status can be checked on the BSE website, as well as the registrar’s website in case anyone wants to confirm.
The Go Fashion IPO was divided among qualified institutional buyers, non institutional buyers and retail buyers. Of this, up to 75 per cent of the shares was reserved for qualified institutional buyers or QIBs while 15 per cent was set aside for non institutional buyers. The remaining 10 per cent stakes was reserved for non institutional buyers.
The issue has been oversubscribed largely on the backing of non institutional investors. Non institutional investors have bid for 262.08 times of the issue. Qualified institutional buyers bought 100.73 times of the shares reserved for them, while retail buyers put in bids for 49.70 times of the portion set aside for them.
Go Fashion IPO Strengths
Go Fashion India Limited is one of the largest women’s bottom-wear brands in India, which makes it the prime strength of the company when it goes for listing for Tuesday. The wide, well-diversified, product portfolio and first-mover advantage of Go Fashion, which owns bottomwear brand Go Colors, will act as another advantage. Moreover, the company has 459 exclusive brand outlets (EBOs) that are spread across 23 states and union territories in India, which makes it a favourite among investors. Strong financial performance record of the company will put it into an advantageous position.
Go Fashion IPO GMP Today
The Go Fashion shares were fetching a grey market premium of Rs 480 on Tuesday, November 16. This was up by almost 70 per cent over the upper price band of Rs 690 per share as fixed by the company. This means that the shares would list at around Rs 1,170 at the grey market. The high GMP indicated strong listing for Go Fashion shares on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) later this month.
Issue Objectives of Go Fashion IPO
An amount of Rs 33.70 crore raised for the issue will be be used for funding the roll out of 120 new exclusive brand outlets of Go Fashion. It will also be used to working capital requirements (Rs 61.45 crore) and for general corporate purposes, said the company.
The book running lead managers to the issue are JM Financial Limited, DAM Capital Advisors Limited, and ICICI Securities Limited.
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