Go Fashion IPO subscribed 6.87 times on Day 2, led by strong demand from retail investors

The initial public offer (IPO) of Go Fashion India was subscribed 6.87 times on the second day till 5:00 pm on Thursday.  Against 80,79,491 shares on offer, bids for 5,55,12,051 stocks were made around the same time on the second day of subscription.

Retail Individual Investors (RIIs) booked the issue 26.64 times as the bids were made for whooping 3,61,93,920 shares as against 14,68,998 stocks reserved for this category.  

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Non-Institutional Investors (NIIs) and Qualified Institutional Buyers (QIBs) booked the issue 2.30 times and 3.24 times, respectively till 5:00 pm on second day of the subscription.

The three-day IPO that was launched on November 17, 2021, will be active till November 22, 2021. 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.

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 the promoter and existing shareholders, showed the draft red herring prospectus (DRHP) of the company.  

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.  

Earlier, ahead of the IPO launch on Wednesday, Go Fashion, which owns women's wear brand Go Colors, Tuesday raised a little over Rs 456 crore from anchor investors.  

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.