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Go Fashion IPO subscribed 92% on Day 1, retail portion booked 4.86 times –

Go Fashion

The initial public offering (IPO) of Go Fashion, one of India’s largest women’s bottom-wear brands, was subscribed 92 percent within hours of opening of the bids on November 17. Bids were received for 74.16 lakh equity shares against an IPO size of 80.79 lakh units on the first day.

The company raised Rs 456.12 crore through the anchor book on November 16. The offer size has been reduced to 80.79 lakh equity shares from 1.46 crore earlier.

Retail investors had put in bid 4.86 times the shares reserved for them, while the part set aside for non-institutional investors was subscribed 12 percent. Qualified institutional buyers were yet to put in their bids.

The company plans to mop up Rs 1,013.61 crore through its public issue at the upper price band. The price band has been fixed at Rs 655-690 a share.

Also read: Go Fashion IPO opens| 10 key things to know about public issue including grey market premium, risks & concerns

The offer comprises fresh issuance of shares worth Rs 125 crore and an offer-for-sale of 1.28 crore equity shares by selling shareholders, including promoters PKS Family Trust and VKS Family Trust.

The proceeds from the fresh issue will be utilised for funding the roll-out of 120 exclusive brand outlets and in meeting working capital requirements.

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Marwadi Financial Services has assigned “subscribe” rating to the issue because of its brand value, well-diversified portfolio and multi-channel pan-India distribution network.

“Also, it is available at reasonable valuation as compared to its peers,” it said.

Considering TTM (trailing twelve months- June 2021) sales of Rs 271.4 crore on a post-issue basis, the company is going to list at market capitalisation/sales of 13.73 with the market cap of Rs 3,726.6 crore, while its peers like Page Industries and Trent are trading at market cap/sales of 13.21 and 11.89, respectively, Marwadi said.

Go Fashion has one of the widest portfolios in bottom-wear products (under the brand Go Colors) among women’s apparel retailers in India, with a market share of approximately 8 percent in the branded women’s bottom-wear market, the company said.

It serves its customers primarily through its 459 exclusive brand outlets spread across 23 states and Union Territories.

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