GMP, subscription status, other details to know. Do I have to subscribe?

Go Fashion’s three-day initial public offering (IPO) was opened for public subscription today and will close on November 22, with the price range set at ??655-690 one part. Public issue Go Fashion (India) Ltd, which owns the Go Colors womenswear brand, saw strong demand from retail investors as part of it was oversubscribed within minutes of opening.

By the end of the first day of auction, the show had been subscribed to 2.46 times, driven by strong retailer participation. Retail investors, whose investments cannot exceed ??2 lakh per individual, subscribed 12.14 times of the 1.47 million shares offered.

The IPO includes a new issue of capital shares totaling up to ??125 crore and an offer to sell up to 12,878,389 shares by the promoter and existing shareholders. At the high end of the price range, the IPO is expected to hit 1,013.6 crore.

According to market watchers, the premium of Go Fashion (GMP) shares has jumped to ??535 on the gray market. The company’s shares are expected to be listed on the BSE and NSE stock exchanges on November 30, 2021.

“We believe that the company’s main category products, higher gross margins and performance ratios are positive,” Anand Rathi said in a note which has a subscription note on the matter on the back of it. ‘a profitable and scalable EBO model. may be the possibility of a greater number of Covid-19 cases; dependence on a single brand and category, and intense competition.

Go Fashion is engaged in the development, design, sourcing, marketing and retailing of a line of women’s bottoms under the “Go Colors” brand. Proceeds from the new issue will be used to finance the deployment of 120 new exclusive branded outlets, to support working capital needs and general corporate objectives.

“In the current market scenario, most IPOs are expected to perform well. We expect Go Fashion’s IPO to receive a good response on listing as well. The boom in the textile sector will also help. Go Fashion Longer Term However, we advise investors to reserve the premium at the time of listing, ”said Ravi Singh, director of research and vice president of ShareIndia.

Go Colors serves its customers primarily through its extensive network of 459 Exclusive Brand Outlets (EBOs) across 23 states and union territories in India, as of September 30, 2021.

“Go Fashion India has a better track record of revenue growth, higher operating margin and high return on equity compared to TCNS Clothing Co. Considering all the positive factors, we believe this valuation is at low levels. reasonable levels. So, we recommend a subscription note on the matter, ”Angel One said in a note.

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