Go Fashion shares make bumper listing; stock rallies 90% from IPO price on debut trade

Go Fashion’s IPO had received a strong response from investors earlier this month.

Go Fashion
Go Fashion shares listed at a premium to IPO price. (Image: REUTERS)

Go Fashion (India) shares listed on the stock exchanges today at a sharp premium amid bullish market momentum. Go Fashion stocks opened for trade at Rs 1,316 per share, up Rs 626 apiece or 90.72% from the upper end of the IPO price band of Rs 655-690 per share. The women’s apparel brand had entered the IPO market earlier this month to raise Rs 1,014 crore through a mix of fresh issue of equity and an Offer For Sale (OFS). Go Fashion (India) had a market capitalisation of Rs 7,107 crore on listing.

Check Live Price: Go Fashion (India)

Go Fashion’s IPO had received a strong response from investors earlier this month. The IPO was oversubscribed by all categories of investors. QIBs had bid for the issue 100 times the reserved portion while NIIs had bid for the issue 262 times and retail category at 49 times, taking the overall subscription to 135 times. 

In terms of valuation, analysts at ICICI Direct said that at the upper end of the price band, it is valued at 9.4x, 14.6x EV/sales for FY20, FY21, respectively. The brokerage firm had no rating on the issue but added that Go Fashion is a play on the unorganised to the modern retail shift. The branded women’s bottom-wear market is pegged at Rs 4,473 crore and the company has close to 8% market share.

Analysts at Marwadi Financial Services had a ‘Subscribe’ rating on the issue adding that the company is a renowned women’s bottom wear in India with a well-diversified portfolio and multi-channel pan India distribution network. The brokerage firm said that the valuations were reasonable.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express Telegram Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.