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Go Fashion IPO: Open issue, know this before investing

Highlights:

  • Go Fashion’s Rs 1,013.61 crore IPO to open today, November 17
  • The price band has been fixed at Rs 655-690 per share.
  • You can invest in this IPO till November 22.

Go Fashion, the parent company of women’s apparel brand Go Colors, will open an IPO of Rs 1,013.61 crore today, November 17. The price band has been fixed at Rs 655-690 per share. On which money can be invested till November 22. Under this IPO, new shares worth Rs 125 crore will be announced. At the same time, the promoters and existing shareholders of the company will sell 1,28,78,389 equity shares under the offer for sale.

Prior to the IPO, Go Fashion Ltd had raised Rs 456 crore from anchor investors. According to the circular uploaded on the BSE website, the company has decided to allot 66,10,492 equity shares at a price of Rs 690 per share to 33 anchor investors. The company’s anchor investors include the Government of Singapore, Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Fidelity, SBI Mutual Fund, ICICI Prudential Mutual Fund and Mutual Fund, HDFC Mutual Fund, ISIS.

gray market premium
Go Fashion Unlimited’s shares have a premium of Rs 350 per share in the gray market. This is 50 per cent higher than the upper band of the issue price. This indicates that it may make a strong entry into the stock market. The stock may be on BSE and NSE listing by the end of this month. Experts say that the company has a good track record of revenue growth. Operating margin and return on equity are high as compared to other companies in this sector. Looking at this, it can be said that its evaluation is reasonable. So it’s okay to subscribe to this issue.

How much reserve for retail investors
Investors can invest in at least 21 stocks in this IPO. Thus, based on the upper price of the price band, a minimum investment of Rs 14,490 is required. About 75 per cent of the issue is reserved for QIBs, 15 per cent for NIIs and 10 per cent for retail investors. The company plans to open around 2000 exclusive brand outlets in the country in the next 6-7 years. The company currently has 459 exclusive brand outlets across the country.

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