Go Fashion India Limited is all set to open its first Initial Public Offering or IPO on Wednesday, November 17. Rs 1,013 crore IPO Will be open for six days instead of the usual three days, as November 19 is a national holiday. NS Go Fashion IPO Will close on 22nd November. The company, which is the owner of Go Colours, is engaged in the development, design, sourcing, marketing and retailing of a range of women’s bottom-wear products under the brand ‘Go Colours’. The company has already raised Rs 56.12 crore from 33 anchor investors and now 66,10,492 shares will be auctioned. Top anchor investors include the Government of Singapore, Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Fidelity, Neuberger Berman Emerging Markets Equity Master Fund, University of Notre Dame du Lac, and Volado Venture Partners Fund II.
Go Fashion IPO Details
The Go Fashion IPO, which opened from November 17 to 22, consists of fresh proceeds of Rs 888.60 crore and Offer for Sale (OFS) of Rs 125 crore. The price band for the initial public offer is Rs 655-690 per equity share. The Company will not receive any income from the OFS portion of the Offer.
The lot size of the first public bid has been fixed in multiples of 21 equity shares and 21 shares thereof. This means retail investors can invest at least Rs 14,490 per lot in the IPO. The maximum price of one lot can go up to Rs 1,88,370 for 13 lots. Retail investors can invest up to Rs 2 lakh in the initial public offer.
The GoFashion IPO is divided among qualified institutional buyers, non-institutional buyers and retail buyers. Of this, up to 75 per cent of the shares are reserved for qualified institutional buyers or QIBs, while 15 per cent is set aside for non-institutional buyers. The remaining 10 per cent stake has been reserved for non-institutional buyers.
Go Fashion IPO Key Strength
According to Choice Broking, Go Fashion India has a diverse product line
portfolio and a multi-channel pan-India distribution network with a focus on niche brand outlets that enhance brand visibility. It has strong unit economics with an efficient operating model, and in-house expertise in developing and designing products. All these qualities will ensure profit in the company.
Go Fashion IPO GMP Today
On Tuesday, November 16, Go Fashion shares were getting a gray market premium of Rs 555. This was 150.72 per cent higher than the upper price band of Rs 690 per share set by the company. This means that the shares in the gray market will be listed at around Rs 1,245. Higher GMP indicated strong listing for Go Fashion stocks on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) later this month.
Should you subscribe?
Reliance Securities: The IPO is valued at 14.6x FY21 EV-to-sales, which looks at par with Trent, but at a significant premium to Aditya Birla Fashion & Retail (ABFRL). Trent and ABFRL are considered better than GFL in most of the parameters. However, the share of organized retail sales within women’s apparel has increased from 19 per cent in FY15 to 27 per cent in FY20, and is expected to reach 42 per cent by FY25E, mainly due to the growing female population, Due to the increasing number of working women, changing fashion trends and increasing spending power of the consumers. Notably, women’s bottom-wear is the fastest growing category in the women’s apparel segment, and is expected to grow from Rs 135 billion in FY15 to Rs 243 billion in FY15. This provides GFL with healthy growth visibility in the long run.
read all breaking news, breaking news And coronavirus news Here. follow us on Facebook, Twitter And Wire,
,