Go Fashion to make D-Street debut today. Will the listing premium match the investor interest?

#Go Fashion India, #IPO - Listing Strategy, IPO, Click Here

Go Fashion IPO

Women’s bottom-wear brand Go Colors operator Go Fashion is likely to debut with a 65-70 percent premium on the bourses on November 30, given the IPO subscription and demand in grey market.

The company held an 8 percent share in the organised women’s bottom-wear market in FY20. It has a healthy, asset-light business model and had operating cash flows despite volatility in profit in the last three fiscals.

Go Fashion mopped up Rs 1,014 crore from the public issue that was subscribed 135.46 times during November 17-22. Non-institutional investors had put in bids 262.08 times the portion set aside for them and qualified institutional investors’ reserved portion was subscribed 100.73 times. Retail investors bought shares 49.70 times the portion reserved for them.

The company’s shares are available at a massive premium of 65-75 percent (Rs 450-520) in the grey market, translating into a trading price of Rs 1,140-1,210 per share in the grey market against an issue price of Rs 690 per share, as per IPO Central and IPO Watch.

The grey market is an unofficial platform. IPO shares start trading in the grey market with the announcement of the price band and continues till the listing of shares on the bourses.

“We expect the listing at Rs 1,170, which gives a gain of around 70 percent,” said Gaurav Garg, Head of Research at CapitalVia Global Research. He pointed out that the company has not been profitable since FY19 but has had healthy operating cash flows.

Click Here To Know All IPO Related News

In FY21, the company posted a loss of Rs 3.54 crore as against a profit of Rs 52.63 crore in previous year, on a revenue of Rs 250.66 crore, down from Rs 392 crore.

It reported a loss of Rs 18.99 crore in the quarter ended June 2021 as against a loss of Rs 8.59 crore a year ago, although revenue increased sharply to Rs 30.99 crore from Rs 10.3 crore.

Go Colors gained around 8 percent share of the market pie in FY20 through its 459 exclusive brand outlets.

“Looking at the strong HNI and QIB subscription demand for largest women’s bottom-wear brands in India, we can expect a strong listing gain with 65-70 percent premium on upper end of the IPO price Rs 690,” says Prashanth Tapse, Vice-President (Research) at Mehta Equities.

“Strong listing gains seem to be justified as Go Fashion was reasonably priced, leaving money on the table for new investors. The company has a healthy, asset-light business model, and is backed by the growth-focused IPO proceeds,” he said.

The offer was composed of a fresh issue of Rs 125 crore and an offer-for sale of Rs 888.61 crore by promoters and investors. The company will utilise the net proceeds from fresh issue for rolling out 120 exclusive brand outlets, and meeting working capital requirements.

Astha Jain, Senior Research Analyst at Hem Securities, expects Go Colors to list at more than 50 percent premium to the issue price.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

News Related


Join Us on Our New Two-Day Rally Through the Heart of Texas Hill Country

We have a ton of new events coming up, and we want you to join us. Among them is our first one-day rally through the heart of Texas hill country, ... Read more »

Premium auto dealership chain Landmark files papers for Rs 762 crore IPO

Representative image Automobile dealership chain Landmark Cars Ltd has filed preliminary prospectus with capital markets regulator Sebi to raise Rs 762 crore through an initial public offering. The public issue ... Read more »

LG Energy Solution sets historically high bids in IPO subscription

Customers visit a sales office of Shinhan Investment in Seoul, Tuesday, to place bids for LG Energy Solution shares ahead of its initial public offering. Yonhap By Lee Min-hyung The ... Read more »

Australian sharemarket in two-day losing streak after Wall Street slump batters local tech stocks

The Australian sharemarket slid into the red for the second straight day on the back of a resoundingly negative lead from Wall Street, including the tech-heavy Nasdaq index tumbling by ... Read more »

Daily Voice | Lav Chaturvedi of Reliance Securities lines up 3 segments that stand to reap the most from Budget 2022

Lav Chaturvedi is the Executive Director and Chief Executive Officer at Reliance Securities Come February 1, as Finance Minister Nirmala Sitharaman will present the Union Budget for 2022-23, there will ... Read more »

Asia shares drop, bond yields hit highs

Asia's share markets have struggled as US Treasury yields hit fresh two-year highs and a global technology stock sell-off unsettled investors worrying about inflation and bracing for tighter US monetary ... Read more »

2022 Bentley Flying Spur Hybrid First Drive Review: Don't Fear The Reaper

© Motor1.com 2022 Bentley Flying Spur Hybrid First Drive The eco-chic plug-in hybrid sedan proves that the future will still be grand even once Bentley goes all-electric. Bentley’s famed 8- ... Read more »

Wall Street sinks as bond yields spike

Wall Street's main indices have fallen sharply as weak results from Goldman Sachs weighed on financial stocks and tech shares continued their sell-off to start the year as US Treasury ... Read more »

Join Us on Our New One-Day Rally Through the Heart of Texas Hill Country

We have a ton of new events coming up, and we want you to join us. Among them is our first one-day rally through the heart of Texas hill country, ... Read more »

BREAKING: Everton name Duncan Ferguson as caretaker boss after sacking Rafa Benitez

Everton have named Duncan Ferguson as caretaker boss following the sacking of Rafa Benitez. The Toffees legend previously did a similar role at Goodison Park and will again step in ... Read more »

Emmerdale's Dingle family face 'life-changing' decisions with major 'repercussions'

Emmerdale is set for dramatic scenes later this year as the Dingle family face “life-changing” decisions with major “repercussions” for the entire village. Teasing what viewers can expect from the ... Read more »

Tren IPO Startup via Perusahaan Cek Kosong, Akulaku hingga Traveloka

© Disediakan oleh Katadata Ppotensi Ekonomi Digital Indonesia IPO startup diperkirakan diwarnai merger dengan perusahaan akuisisi bertujuan khusus atau SPAC tahun ini. Setidaknya ada empat yang menjajaki penawaran saham perdana ... Read more »

JB Hi-Fi jumps, Redbubble tanks as ASX finishes barely changed

The Australian sharemarket traded in the green before going south in late trade, but JB Hi-Fi was among the best performers after reporting strong demand for consumer electronics and home ... Read more »

Buy GNA Axles: target of Rs 720: Sharekhan

Sharekhan’s research report on GNA Axles Q3FY2022 results were below expectations, marred by weak class-8 truck sales and muted growth in domestic tractors. While remaining positive on the company’s growth ... Read more »

Fed rate hikes not entirely dampers on stock market: AllianceBerstein

David Wong, senior investment strategist at AllianceBerstein, speaks during an online press conference held in Seoul, Tuesday. Courtesy of AllianceBerstein By Lee Min-hyung The U.S. Fed’s planned rate hikes will ... Read more »

Gold eases as US yields firm; investors await Fed rate hike cues

Gold prices eased on Tuesday, pressured by higher U.S. Treasury yields, as investors looked for clues about the Federal Reserve’s interest rate hike timeline from its policy meeting next week. ... Read more »

Daily Voice | FM likely to focus on these 5 sectors in Budget 2022: Sahil Kapoor of DSP Investment

Sahil Kapoor is the Head Products and Market Strategist at DSP Investment Managers Sahil Kapoor, Head – Products and Market Strategist at DSP Investment Managers, says it will be important ... Read more »

Kerala Lottery Result: 'Shree Sakthi SS-296' lottery winners to be announced at 3 pm

Kerala had set up India’s first lottery department in 1967. Kerala Lottery Result: The Kerala State Lottery Department will announce the winners of the ‘Shree Sakthi SS-296’ lottery on January 18 at 3 ... Read more »

Asia shares higher, spotlight stays on Fed

Asia's share markets have been mostly higher even as global investor attention remains fixed on the prospect of US interest rate hikes in the next few months, after two years ... Read more »

Leicester City vs Tottenham: How to watch, TV channel, live stream information, kick-off time

Tottenham will be looking to build on their impressive domestic run as they travel to the King Power Stadium on Wednesday evening. Antonio Conte’s side are undefeated in their last ... Read more »

Korean banks remain conservative toward cryptocurrency industry

Seen above is a real-time trading price of bitcoin at an office of Bithumb in Seoul on Jan. 10. Yonhap By Lee Min-hyung Korean banks are taking a cautious attitude ... Read more »

Wendy Moten to sing national anthem at Grizzlies MLK game

© Provided by Action News 5 Memphis Memphis native Wendy Moten on ‘The Voice’ MEMPHIS, Tenn. (WMC) – Monday’s Grizzlies game against the Chicago Bulls, will have a special tribute ... Read more »

Emmerdale's Chloe issues update about criminal father as she stands up to Kerry

Emmerdale‘s Chloe Harris issued an update about her mysterious criminal father on Monday’s episode as she stood up to Kerry Wyatt. Soap fans were left gripped last year as Chloe ... Read more »

Emmerdale's Liam left floored over new Meena bombshell as he seeks revenge

Emmerdale was full of drama on Monday’s episode as Liam Cavanagh was left stunned over a new Meena Jutla bombshell. Only recently, Liam discovered that Meena had murdered his daughter ... Read more »

Top Stock Reports for JPMorgan, NIKE & Union Pacific

Monday, January 17, 2022 The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including JPMorgan ... Read more »

IPO-bound Oyo targets valuation of $9 billion, SEBI nod expected soon: Report

Representative Image Oyo Hotels and Homes, the parent entity of hospitality firm Oyo, is targeting a valuation of $9 billion in its initial public offering (IPO), Bloomberg reported on January ... Read more »

Robert Lewandowski crowned FIFA Best Men's Player pipping Lionel Messi to award

Robert Lewandowski has been crowned the 2021 FIFA Best Men’s Player. The Bayern Munich striker scored 69 goals in all competitions last year, winning the Bundesliga title and DFL Supercup. ... Read more »

Soshanguve woodworker enjoys coming up with unique ideas for furniture

© Supplied/Vutivi. Thapelo Bodiba makes furniture. Author: Tebogo Mokwena Read more small business good news on Vutivi Business News. When Thapelo Bodiba was growing up, he dreamt of being in ... Read more »

Geleza: The affordable scientific calculator brand

© Provided by Eyewitness News Author: Tebogo Mokwena Read more small business good news on Vutivi Business News. After working with children in rural Limpopo and developing their love for ... Read more »

Buy HCL Technologies: target of Rs 1550: Sharekhan

Sharekhan’s research report on HCL Technologies HCL Technologies surprised positively with outstanding revenue growth performance, but profitability missed our estimates; Q3 saw healthy deal bookings, strong hiring, good cash flow ... Read more »

How to watch Amir Khan vs Kell Brook: Fight date, TV channel and live stream details

Amir Khan and Kell Brook will finally meet in the ring in February and excitement is rising ahead of the bout in Manchester. After years of calling each other out, ... Read more »

Buy HCL Technologies; target of Rs 1460: Emkay Global Financial

“India’s specialty chemicals industry is a decadal growth opportunity and it is still not too late to participate in the value creation process. We prefer CRAMS/CSM players Navin Fluorine (Navin) and PI Industries ... Read more »

Buy HDFC Bank; target of Rs 1910: Arihant Capital

Arihant Capital’s research report on HDFC Bank HDFC Bank during Q3FY22 has reported strong 18% YoY growth in profit at INR 10,342 cr was higher than our estimate of INR ... Read more »

Buy HDFC Bank; target of Rs 1870: Prabhudas Lilladher

Prabhudas Lilladher’s research report on HDFC Bank HDFCB’s PAT at Rs103.42bn was marginally higher than estimate (PLe: R101.53bn), led by a better than expected NII growth of 13% YoY on ... Read more »

Buy HCL Technologies; target of Rs 1690: Motilal Oswal

Motilal Oswal’s research report on HCL Technologies HCLT delivered an exceptionally strong revenue growth of 7.6% QoQ CC in 3QFY22, 310bp above our estimate, led by its troubled Products and ... Read more »

Yoon-related stocks spike after clearing 'Kim phone call risk'

The main opposition People Power Party’s presidential candidate Yoon Suk-yeol is seen with his wife Kim Keon-hee on MBC’s program airing contents of phone calls between Kim and a YouTuber, ... Read more »

Buy Wipro; target of Rs 794 : KR Choksey

KR Choksey’s research report on Wipro Dollar Revenue was up 2.3% QoQ and in CC term grew by 3% QoQ to USD 2,640mn (KRChoksey est. USD 2,678Mn). Rupee revenue grew ... Read more »

Buy Mindtree; target of Rs 5263 : KR Choksey

KR Choksey’s research report on Mindtree Dollar Revenue was up 4.7% QoQ to USD 366mn (KRChoksey est. USD 339mn). Rupee revenue grew by 6.3% QoQ to INR 27,500mn (KRChoksey est. ... Read more »

Kia Carens gathers 7,738 bookings in a single day

– Prices likely to be announced next month – Available with three engine options across five variants Kia India commenced the pre-bookings of the upcoming Carens on 14 January, 2022. ... Read more »

Monday briefing: PM turns on BBC as ‘Partygate' pressure mounts

© Provided by The Guardian Photograph: Rob Pinney/Getty Images Top story: No-confidence letters piling up Good Monday morning to you, Graham Russell here with the latest news to start the ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic