Go Fashion India Limited, a clothing retailer trading under the Go Colors brand, has launched an IPO of Rs 1,014 crore for investors on November 17 which will close on November 22. The company fixed the initial price of the IPO band at Rs 655-690 per share. It has grown 6.87 times two days after the IPO opened. At the same time, the gray market premium of Go Fashion IPO has also increased. The gray market premium of Go Fashion shares was Rs 460. In which there has been an increase of Rs. Market experts believe that when the market resumes on Monday after a three-day holiday, the gray market premium may have an impact on the IPO payout. More investors may be attracted towards IPO. Monday 22nd November is the last day to file the IPO.
Let us tell you that market watchers say that one share of Go Fashion’s IPO is currently trading at a premium of Rs 500 in the gray market. On Friday it was Rs 460. This means the gray market premium has increased by Rs 40. The gray market premium of Go Fashion shares remained stable on Wednesday and Thursday. One share of Go Fashion is currently trading at Rs 1160 (690+500) in Gray Market. Which is 72 percent more than its issue price. The company has kept the share price band at Rs 655-690 per share. At the same time, many market experts have advised Go Fashion to file an IPO.
However, some market experts have warned investors that it is not advisable to invest in IPOs only because of the gray market premium. Along with the gray market premium, one should also look at the balance sheet of the company. According to the company, new equity shares of Rs 125 crore will be announced in the Rs 1,014 crore IPO. While shares worth Rs 888.6 crore will be offered for sale. The existing promoters and shareholders of the company will sell about 12,878,389 crore equity shares in the offer for sale.
Explain that the promoters of the company PKS Parivar Trust and VKS Trust will sell 7.45 lakh shares. Sequoia Capital India Investment IV, one of the company’s investors, will sell 74.98 lakh shares. India Advantage Fund S4I will sell 33.11 lakh shares and Dynamic India Fund S4I will sell 5.76 lakh shares. An investor can bid for a minimum of 21 shares in the IPO of Go Fashion. According to the upper price band, the investor will have to invest at least Rs 14,490. An investor can apply for a maximum of 13 lots. The company said it will use the proceeds from the IPO to meet its working capital requirements as well as meet its general corporate objectives and open 120 new brand stores.