Go Fashion, which owns women’s wear brand Go Colors made a bumper debut on the bourses on Tuesday, listing at over 90 per cent premium over its issue price of ₹690.

The shares listed at ₹1,316 on the BSE, up ₹626 or 90.72 per cent from the issue price. It climbed further to an intraday high of ₹1,341 post listing and a low of ₹1,144.15. It closed at ₹1,252.60, recording gains of ₹562.60 a piece or an 81.54 per cent over the issue price. On the NSE, it listed at ₹1,310, and closed at ₹1,250.30.

The company had a market cap of ₹6,765.17 crore at closing, as per BSE data.

The public issue of the company comprises a fresh issue of shares worth ₹125 crore and an offer-for-sale worth ₹890 crore. The proceeds will be used to fund the roll-out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes, the company had said in a draft IPO paper.

ICICI Venture’s partial exit

ICICI Venture, the alternative asset arm of ICICI Bank, has partially exited its ₹100 crore investment in Go Fashion at internal rate of return of 51 per cent. The fourth private equity fund -- India Advantage Fund Series 4 – of ICICI Venture had acquired 13.5 per cent stake in Go Colours in 2018.

The IPO was subscribed 135.44 times.

Santosh Meena, Head of Research, Swastika Investmart Ltd, said, “Go Colors has a sturdy brand value with fluctuating revenues while the company moved into losses in FY21. However, as the number of working women is increasing along with the evolving fashion trends it is expected that the company can have a strong growth momentum.”

Vinod Nair, Head of Research at Geojit Financial Services said: “We like Go Fashion (India) Ltd considering, being the first company to launch exclusive brand dedicated to women’s bottom wear, investment in digital & omnichannel engagement, focus on E-retail, distributive growth strategy to tap customers from Tier I to Tier III cities and expansions plans for existing and newer geographies.”

 

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