Go Fashion makes stellar debut on exchanges, lists at 90% premium; exceeds Anil Singhvi’s expectations

Go Fashion (India) made a stellar debut on the exchanges exceeding the expectations of Zee Business Managing Editor Anil Singhvi and of the market analysts. 

The shares of the company listed over 90 per cent higher premium to Rs 1316 and Rs 1310 per share on the BSE and NSE, respectively on Tuesday. The stock made a life-high of Rs 1341 per share on the BSE and Rs 1339 per share on the NSE minutes after the listing.

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The managing editor had expected ahead of its listing that it would list around Rs 1150-1200 per share against issue price of Rs 690 per share at the upper end of price band and had suggested investors should Hold with a trailing stop loss of Rs 1000 per share.

Immediately after listing the stocks witnessed profit booking and has been trading flat with negative bias at around 10:09 am on the BSE, as against a 1.29 per cent rise in the S&P BSE Sensex

Santosh Meena, Head of Research, Swastika Investmart Ltd said, “As the number of working women is increasing along with the evolving fashion trends it is expected that the company can have a strong growth momentum. The company has a strong management team with a mixed bag of financials and it is expected that it may perform well.”

The aggressive investors, who got the allotment, can put a stop loss of Rs 1000 and hold the stock with a long-term view, while safe investors can book the profit and wait for new buying opportunities at the lower levels, the market analyst says after the listing of Go Fashion.

The three-day initial public offer was launched between November 17-22, 2021 and the issue was oversubscribed by 136 times during the period. The IPO received bids for 1,09,44,34,026 shares against issue size of 80,79,491. 

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.

(Disclaimer: The views/suggestions/advices expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.).