Ahead of its market debut on Tuesday, Zee Business Managing Editor Anil Singhvi expects a bumper listing for Go Fashion (India). The initial public offer was launched between November 17-22, 2021, and the issue was oversubscribed 136 times during a three-day period.

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The managing editor expects, “The shares of Go Fashion to list around Rs 1150-1200 per share against issue price of Rs 690 per share at the upper end of the price band.” He suggests investors should HOLD with a trailing stop loss of Rs 1000 per share.

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Earlier in his IPO preview, the managing editor had recommended to apply for big listing gain and with long-term vision. As positives, he had said, the company has a strong growth track record; asset-light model; cash-surplus, and debt-free company with resalable valuation and no litigations.

The IPO received bids for 1,09,44,34,026 shares against issue size of 80,79,491. The non-institutional investors (NIIs) subscribed Go Fashion IPO 262.08 times, the retail portion was booked 49.40 times and Qualified Institutional Buyers (QIBs) bi for 100.73 times for this IPO.   

The offer 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, as per the draft red herring prospectus (DRHP).

The company had fixed a price band of Rs 655-690 per share for this issue and a day before the IPO launch on November 16, 2021, the company had mobilised Rs 456 crore from anchor investors.

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.