Go Fashion IPO gray market premium is ₹ 600

Go Fashion IPO gray market premium is ₹ 600

So far in the first two days of IPO opening, it has oversubscribed by 6.87 times.

“It has acted as a “category creator” for bottom-wear and has levered its first mover advantage to create a direct-to-consumer brand with a diversified and differentiated range of premium products at competitive prices, from Rs225 to Rs1,599,” said Anand Rathi in a report.

Flourish chartAnother exciting fact about Go Fashion company is its profitable and scalable exclusive brand outlet (EBO) model.

Women’s bottom-wear is the fastest-growing category in the women’s apparel segment, and is expected to grow to ₹243 billion by FY25, from ₹135 billion in FY20, says Reliance Securities.

Story Highlights

  • Another major reason for the euphoria around the IPO is its strong grey market premium, which has increased 3 times in the last couple of days to ₹600 per share. Meanwhile, the IPO is in the price range of ₹655- ₹690 per share.

  • Investors Subscription Qualified institutional investors3.24 timesNon-institutional investors2.30 timesRetail 24.64 timesOverall6.87 timesMoreover, analysts are also bullish on the prospects for Go Fashion, one of the largest women’s bottom-wear brands in India under brand Go Colors. Go Fashion’s future expansion plans and good market share in branded women’s bottom wear has urged brokerage firms to recommend a subscribe rating on the stock.

Further, the proceeds from the fresh issue will be used to fund the roll out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.

SEE ALSO: The excitement around Go Fashion IPO is making money for shareholders of TCNS Clothing too

Zomato is now bigger than Paytm — reasons why the market is not excited about Vijay Shekhar Sharma’s vision of a superapp