Go Fashion IPO opens today: Apply for big listing gain with long-term vision, says Anil Singhvi

The initial public offer (IPO) of woman apparels brand Go Fashion India's initial public offer (IPO) is all set to launch its share sale from Wednesday, November 17, 2021. The three-day offer sale will conclude on November 22, 2021.  

See Zee Business Live TV Streaming Below:

The IPO comprises Rs 1,014-crore fresh issue of equity shares aggregating up to Rs 125 crore and an offer-for-sale of up to 12,878,389 equity shares by promoter and existing shareholders, showed the draft red herring prospectus (DRHP) of the company. As much as 75 per cent of the issue size as been kept reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, and the remaining 10 per cent has been set aside for retail investors.  

Ahead of the IPO rollout on Wednesday, Go Fashion, which owns women's wear brand Go Colors, on Tuesday raised a little over ₹456 crore from anchor investors.

Earlier, the company has fixed a price-band of Rs 655-690 per share for this issue. An Investor can bid for a minimum of 21 equity shares and in multiples thereof.

Should you subscribe? 

As the issue opens today, Zee Business Managing Editor Anil Singhvi has recommended to apply for big listing gain and with long-term vision.  

He also highlighted positives and negative of Go Colors

Positives

- Strong growth track record

- Asset light and modal

- Cash-free, debt-free company

- Valuation resalable

- No litigations

Negatives:

Highly Competitive Business.

Small size company.

Online sales are very low.

Meanwhile, the company plans to use the net proceeds from the issue to fund the rollout of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.  

Go Fashion IPO Timeline

Application Start Date: November 17, 2021

Application Closing Date: November 12, 2021

Allotment Start Date: November 25, 2021

Refund Initiation Date: November 26, 2021

Allotment Finalisation Date: November 29, 2021

Listing Date: November 30, 2021  

About Company

Go Fashion (India) is engaged in the development, design, sourcing, marketing and retailing of a range of women's bottom-wear products under the brand, 'Go Colors'. It serves customers primarily through their extensive network of 459 exclusive brand outlets (EBOs), including 12 kiosks operated on the company owned and company operated (COCO) model and 11 franchise stores that are spread across 23 states and UTs in India.