Go Fashion (India) Ltd, which owns the women’s clothing brand Go Colors, has set a price range of ??655-690 a share for his ??Initial public offering (IPO) of 1,014 crore. The first three-day share sale will be open for public subscription on November 17 and close on November 22.
Go Fashion‘s IPO includes a new share issue totaling up to ??125 crore and an offer to sell (OFS) of up to 12,878,389 shares by the promoter and existing shareholders.
According to market watchers, Go Fashion shares on the gray market have surged today and offer a steep premium of ??540. The company’s shares are expected to be listed on the BSE and NSE stock exchanges on November 30, 2021.
“Go Fashion India has a better track record of revenue growth, higher operating margin and high return on equity compared to TCNS Clothing Co. Considering all the positive factors, we believe this valuation is at low levels. reasonable levels. So, we recommend a subscription note on the matter, ”Angel One said in a note.
Established in 2010, Go Fashion (India) Limited is one of the largest brands of women’s hosiery in India. The company is engaged in the development, design, supply, marketing and retailing of a line of women’s socks under the “Go Colors” brand.
Outlets for the Go Fashion brand (Exclusive Brand Outlets or EBO) are located in 23 states and Union territories in India, as of September 30, 2021. As of September 30, 2021, Go Fashion had 459 EBOs located in 118 cities.
“We believe the company’s core category products, higher gross margins and performance ratios are positive,” Anand Rathi said in a note which has a subscription note on the matter on the back of the company. ‘a profitable and scalable EBO model. However, the brokerage sees the key risk to be the possibility of a greater number of Covid-19 cases; dependence on a single brand and category, and intense competition.
Proceeds from the new issue will be used to finance the deployment of 120 new exclusive branded outlets, to support working capital needs and general corporate objectives.
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