Go Fashion IPO subscribed 135 times on final day, retail portion booked 49 times

The initial public offer (IPO) of Go Fashion was subscribed 135.38 times on November 22, the final day of bidding. The IPO  received bids for 109.38 crore equity shares against the offer size of 80.79 lakh equity shares.

The retail portion was booked 49.27 times and non-institutional investors submitted bids for 262.08 times their allocated portion.

The portion for qualified institutional buyers was subscribed 100.73 times. Go Fashion sells women's bottom-wear under the brand Go Colors and logged a market share of around 8 percent in FY20.

The IPO of the firm opened on November 17 and will close November 22.

Allotment of shares will be done on November 25 and shares of the firm will be listed on November 30, 2021 on BSE and NSE. The IPO comprises a fresh issue of equity shares up to Rs 125 crore and an offer for sale of up to 12,878,389 equity shares.

The price band of the IPO has been fixed at Rs 655-690 per share. The lot size for the IPO is 21 shares for which Rs 14,490 will have to be spent.

A retail individual investor can apply for up to 13 lots or 273 shares by spending Rs 188,370.

Prakash Kumar Saraogi, Gautam Saraogi, Rahul Saraogi, Pks Family Trust and Vks Family Trust are the promoters of the firm.

They hold 57.47% stake in the firm which will be reduced to 52.78% after the IPO.

The objects of the IPO are funding roll-out of 120 new EBOs (Exclusive Brand Outlets), funding working capital requirements and general corporate purposes.

JM Financial, DAM Capital Advisors, and ICICI Securities are the managers of the offer.

Brokerages are bullish on the share sale.

Geojit Financial Services said, "At the upper price band of Rs 690, Go Fashion (GFIL) is available at Mcap/sales of 14.9 times (FY21) which appears fully priced. However, considering GFIL's investment in digital channels, omni-channel engagement, focus on e-retail, distributive growth strategy to tap customers from Tier 1 to Tier 3 cities and expansions plans for existing and newer geographies, we assign a 'Subscribe' rating for the issue on a long-term basis." "A growing number of working women, rise in disposable income, consumer shift towards buying from safe and hygienic facilities triggered by COVID-19 augurs well for GFIL," it added.

Angel One also gave a 'Subscribe' rating on the issue. "Go Fashion India has a better track record of revenue growth, higher operating margin and high return on equity compared to TCNS Clothing. Considering all the positive factors, we believe this valuation is at reasonable levels."

The company's bottom-wear products, including churidars, leggings, dhotis, harem pants, Patiala, palazzos, culottes, pants, trousers and leggings are sold across multiple categories such as ethnic wear, western wear, fusion wear, athleisure, and types of denim.