Go Fashion IPO allotment tomorrow; GMP on a downward trend

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Go Fashion IPO allotment tomorrow; GMP on a downward trend
BCCL
  • Go Fashion has received a huge demand from investors as the IPO was subscribed 135.46 times in 3 days.
  • The grey market premium has fallen by over 40% in the last couple of days to ₹350 per share.
  • The allotment of the IPO is scheduled on November 25.
Go Fashion, one of the largest women's bottom-wear brands in India that sells under the brand name Go Colors, has received huge demand from investors in its initial public offering (IPO) as the issue has been oversubscribed by 135 times.

If you have subscribed to the IPO, remember the allotment of the IPO is scheduled for tomorrow, November 25.

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 ₹350 per share from ₹600 earlier. The IPO is in the price range of ₹655-₹690 per share.
InvestorsSubscription
Qualified institutional investors100.73 times
Non-institutional investors262.08 times
Retail49.70 times
Overall135.46 times

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Analysts are however 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 leveraged its first mover advantage to create a direct-to-consumer brand with a diversified and differentiated range of premium products at competitive prices, from ₹225 to ₹1,599,” said Anand Rathi in a report.

The report from Swastika said, “Go Colors has a strong brand value but has fluctuating revenues and the company moved into losses in FY21, but as the number of working women is increasing along with the evolving fashion trend it is expected that the company has strong growth momentum.”

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