Go Fashion IPO Subscription Status Day 1 – Issue received bids 2.46 times, retail portion booked over 12 times

The initial public offer (IPO) of Go Fashion India kicked-start on a stupendous note, eventually ending the first day with 2.46 times subscription till 5:00 pm on Wednesday. Against 80,79,491 shares on offer, 1,99,02,708 stocks received bids on day one of subscription.

Retail portion of the IPO saw strong response as the Retail Individual Investors (RIIs) quota witnessed 12.14 times subscription till 5:00 pm on the first day. Retail investors made bids for 1,78,30,932 shares as against allotted quota of 14,68,998 shares for this category. Non-Institutional Investors (NIIs) subscribed to issue 0.44 times on first day.

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.

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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.  

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.  

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

Anil Singhvi's recommendations

Zee Business Managing Editor Anil Singhvi has recommended to apply for big listing gain and with long-term vision.  He said strong growth track record, asset light model, debt-free company, resalable valuation and no litigations work for the company.  

Highly competitive business, small size company and low online sales are some problems with the company, he said.  

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.