The company is selling its shares in the range of Rs 655-690 during the three-day bidding process. According to the data from NSE, the issue attracted bids for 8,50,87,716 equity shares or 10.53 times as of 11.06 am. The company offered 80,79,491 equity shares in its initial stake sale.
The issue saw heavy bidding from retail investors in the first two days. But the baton seems to have been passed to the QIBs who usually crowd IPO mart on the last day of the bidding process.
Go Fashions (India) is one of the largest bottom-wear ranges in women’s apparel, with an 8 per cent market share in women’s banded bottom-wear.
Go Colors offers products in all categories including ethnic, western wear, fusion and denim. It has leveraged its first-mover advantage to create a direct-to-consumer brand. It intends to expand further in loungewear and athleisure.
The company has received mostly positive responses from the brokerage for a longer run, despite reporting a negative bottom line in the financial year 2020-21.
Marwadi Shares and Finance said that considering TTM as of June 2021 sales of Rs 271.4 crore on the post-issue basis, the company is going to list at Market cap/sales of 13.73 with the market cap of Rs 3,726.6 crore, while its peers namely Page industries and Trent are trading at market cap/sales of 13.21 and 11.89 respectively.
“The company is a renowned women’s bottom wear in India with a well-diversified portfolio, multi-channel pan India distribution network and reasonable valuations compared to its peers,” the brokerage added, giving it a subscribe rating.
A day before the IPO, Go Fashion (India) allotted 66,10,492 equity shares to 33 anchor investors at Rs 690 apiece to raise Rs 456.12 crores.
The list of anchor investors includes the Government of Singapore, Abu Dhabi Investment Authority, Fidelity Finds, Nomura and various domestic mutual funds such as SBI, ICICI, Aditya Birla, Kotak and Axis among others.
The IPO is a mix of issuance of fresh equity shares worth Rs 125 crore, whereas the promoters and existing shareholders will offload 12,878,389 equity shares worth Rs 888.6 via the offer for sale (OFS) route.
