Go Fashion's GMP continues to fall, now at ₹460 per share
- One of the largest women's bottom-wear brands in India under brand Go Colors, Go Fashion is in great demand among investors as IPO subscribed 6.87 times in 2 days.
- The grey market premium has fallen by 23% in last two days to ₹460 per share.
- The IPO that started on November 17 will close on Monday, November 22.
AdvertisementThe initial public offering (IPO) of Go Fashion is receiving great demand from investors, especially retail investors that fully subscribed to the IPO within the first two hours of opening.
However, the grey market premium of the company's shares continue to fall since the last couple of days. Currently, the premium for Go Fashion's shares is at ₹460 per share from ₹600 earlier. The IPO is in the price range of ₹655- ₹690 per share.
So far in the first two days of IPO opening, it has oversubscribed by 6.87 times.
|Qualified institutional investors||3.24 times|
|Non-institutional investors||2.30 times|
Meanwhile, analysts are also bullish on the prospects for Go Fashion, one of the largest women's bottom-wear brands in India under brand Go Colors. Go Fashion’s future expansion plans and good market share in branded women’s bottom wear has urged brokerage firms to recommend a subscribe rating on the stock.
“It has acted as a “category creator” for bottom-wear and has levered its first mover advantage to create a direct-to-consumer brand with a diversified and differentiated range of premium products at competitive prices, from Rs225 to Rs1,599,” said Anand Rathi in a report.
Women’s bottom-wear is the fastest-growing category in the women’s apparel segment, and is expected to grow to ₹243 billion by FY25, from ₹135 billion in FY20, says Reliance Securities.
Another exciting fact about Go Fashion company is its profitable and scalable exclusive brand outlet (EBO) model.
Further, the proceeds from the fresh issue will be used to fund the roll out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.
SEE ALSO: The excitement around Go Fashion IPO is making money for shareholders of TCNS Clothing too
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