Go Fashion — the operator of Go Colors outlets — is set to list its shares on stock exchanges BSE and NSE on Tuesday, November 30. Chennai-based Go Fashion, a women's bottom-wear company, commanded a premium of around Rs 520 in the grey market on Monday, a day prior to the listing of Go Colors shares in the secondary market, according to dealers.
The listing of Go Fashion shares comes at a time when most IPOs have received a strong response from investors, barring Paytm parent One97 Communications, whose shares have recovered some of the losses following a weak debut. Paytm's IPO, the biggest of all time in India, saw a subscription of 1.9 times. Though fully subscribed, the Paytm share sale did not enjoy the kind of investor interest most debutants have enjoyed in recent times.
Go Fashion's premium in the grey market — an unofficial market for unlisted securities — hints at a strong debut on Dalal Street.
"The COVID-19 outbreak impacted the company severely and the focus should now be on the performance post-reopening of the economy. The issue looked richly priced, however, due to a smaller allocation to retail applicants in IPO, it may generate huge fancy on the listing," said Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities.
"Owing to the decent subscription, a magnificent listing is expected. In my view, the issue should list somewhere above Rs 1,100, a premium of about 50-55 percent," he said, adding that the GMP trend has mostly been strong.
Manoj Dalmia, Founder and Director at Proficient Equities, expect the Go Fashion stock to list in the range of Rs 900-1,190 on bourses. One can expect a premium of 50-60 percent over the issue price depending on market conditions, he said.
Go Fashion's IPO, which was open for subscription from November 17 to November 22, saw robust investor interest. Shares were available for bidding in the range of Rs 655-690 apiece under the IPO.
The Go Fashion IPO saw an overall subscription of 135.5 times the shares on offer. The portion reserved for qualified institutional buyers (QIBs) was subscribed 100.7 times, and that reserved for non-institutional investors 262.1 times. The quota reserved for retail investors was booked 49.7 times.