Go Fashion to make market debut on November 30; what experts predict about the listing?

The largest women's bottom wear brand — Go Fashion (India) — is all set to make a market debut on Tuesday, November 30, 2021. The market analysts expect the company to see listing gain of around 30-50 per cent amid the strong demand in GMP (Grey Market Price). 

The clothing company’s initial public offer was the seventh most subscribed offer this year by around 136 times, it received bids for 1,09,44,34,026 shares against issue size of 80,79,491. The three-day IPO between November 17 to 22, 2021, raised Rs 1024 crore out of which Rs 125 crore is fresh issue. 

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Manoj Dalmia, Founder & Director at Proficient Equities Limited expects listing gains, as the GMP is at Rs 520 with the issue price being around Rs 690 per share expected listing price is about Rs 900-1190 range (Rs 520 + Rs 690) approximately 50-60% gains depending on market conditions. 

Similarly, Dr Ravi Singh, Vice President & Head of Research, ShareIndia, “When the overall market sentiments are negative, we expect around 30 per cent gain in Go Fashion on the listing day. The IPO may list in the range of Rs 850-900 on the verge of strong textile sector outlook.” 

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 had on Tuesday last week raised a little over Rs 456 crore from anchor investors.   

The non-institutional investors (NIIs) subscribed Go Fashion IPO 262.08 times, retail portion was booked 49.40 times and Qualified Institutional Buyers (QIBs) bi for 100.73 times for this IPO.   

Ahead of the IPO launch, Go Fashion, which owns women's wear brand Go Colors, on November 21, 2021, raised a little over Rs 456 crore from anchor investors. Go fashion is the largest women bottom wear brand, dealing with marketing, sourcing, development, and retailing of the product.