The Initial Public Offering (IPO) of Go Fashion India Limited, the company behind the popular women’s apparel brand Go Colors, generated significant interest in the market. This review delves into the essential details of the Go Fashion IPO, offering a comprehensive analysis for potential investors.
The Go Fashion IPO aimed to raise ₹1013.6 Cr. The price band for the IPO was set between ₹655 and ₹690 per share. Go Fashion shares were listed on the stock exchanges on November 30th, 2021. Prior to listing, the Grey Market Premium (GMP) for the Go Fashion IPO was tentatively around ₹500, indicating strong investor anticipation. The IPO witnessed remarkable subscription levels, being oversubscribed by 93.66 times as of November 22nd, 2021.
Go Fashion IPO Valuation Metrics
Understanding the valuation of an IPO is crucial for investors. Based on the price band and the Draft Red Herring Prospectus (DRHP)/Red Herring Prospectus (RHP), the approximate valuation for the Go Fashion IPO can be assessed. The upper price band was set at ₹690. With existing shares totaling 5.21 Cr and a fresh issue aiming to raise ₹125 Cr, the market capitalization was estimated at ₹3712 Cr. The Earnings Per Share (EPS) for the financial year 2021 was ₹-0.68, and the Industry Price to Earnings (PE) ratio stood at 130.17x. These metrics provide a snapshot of the financial health and comparative valuation of Go Fashion within its industry.
Go Fashion IPO Issue Size Breakdown
The Go Fashion IPO issue comprised both a fresh issue of shares and an offer for sale (OFS) component. The fresh issue was valued at ₹125 Cr, representing newly issued shares by the company. Additionally, the IPO included an Offer For Sale of 1.28 Cr shares, where existing shareholders offloaded their holdings. Understanding the issue size helps investors gauge the dilution and ownership dynamics post-IPO.
Go Fashion IPO Market Lot Details for Investors
For individual investors, the market lot size determines the minimum and maximum investment amount. In the Go Fashion IPO, a minimum application required 1 lot, consisting of 21 shares, amounting to ₹14,490. The maximum application allowed was for 13 lots, totaling 273 shares, with an investment of ₹1,88,370. These market lot parameters define the investment thresholds for retail participants in the IPO.
Go Fashion IPO Subscription Status and Oversubscription
The subscription levels for the Go Fashion IPO were exceptionally strong, indicating high investor demand. As of November 22nd, 2021, the IPO was subscribed 135.46 times overall, signifying significant oversubscription. Category-wise, Qualified Institutional Buyers (QIBs) subscribed 100.73 times their allocated portion (minimum 75% offered). Non-Institutional Investors (NIIs) showed even greater enthusiasm, subscribing 262.08 times their portion (maximum 15% offered). Retail Individual Investors (RIIs) also demonstrated strong interest, subscribing 49.70 times their reserved portion (maximum 10% offered). This robust subscription across all categories underscored the positive market sentiment towards the Go Fashion IPO.
Go Fashion IPO Grey Market Premium Trends
The Grey Market Premium (GMP) is an unofficial indicator of IPO performance before listing. For the Go Fashion IPO, the tentative GMP fluctuated between November 22nd and November 26th, 2021. On November 22nd, the GMP was ₹460, which decreased to ₹380 on November 23rd, then slightly recovered to ₹400 on November 24th and ₹450 on November 25th, finally reaching ₹500 on November 26th. These GMP figures are tentative and reflect market sentiment but should not be the sole basis for investment decisions.
Go Fashion IPO Important Dates and Schedule
Key dates are crucial for IPO applicants to track the progress of their application. The Basis of Allotment for the Go Fashion IPO was finalized on November 25th, 2021. Refunds for unsuccessful applicants were initiated on November 26th, 2021. Shares were credited to successful applicants’ Demat accounts on November 29th, 2021. Finally, the Go Fashion IPO shares were listed and commenced trading on the stock exchanges on November 30th, 2021.
In conclusion, the Go Fashion IPO was a keenly watched offering, characterized by strong subscription demand and positive grey market sentiment. This review provides a detailed overview of the IPO’s key aspects, including valuation, issue size, market lot, subscription levels, GMP trends, and important dates. Investors are advised to conduct thorough research and consider various factors before making investment decisions in IPOs. Check allotment status for further information.
