Go Fashion IPO GMP (India) Limited, the determined organijsation of popular women’s clothing brand Go Colors, made headlines while it released its Initial Public Offering (IPO). Among the most mentioned factors of this IPO was its Grey Market Premium (GMP) — an unofficial indicator of investor sentiment and expected list gains. In this text, we dive into the Go Fashion IPO GMP, apprehend its implications, and offer a 360-diploma view of the agency and its IPO adventure.
Table of Contents
What is Go Fashion and Why Does It Matters?
Go Fashion (India) Ltd is one of the leading players in the ladies’s backside-wear section in India. The corporation sells its merchandise beneath the emblem called Go Colors, and has constructed a robust presence throughout India via special emblem outlets (EBOs), large layout shops, and on line structures.
Key Highlights of Go Fashion:
- Founded: 2010
- Brand: Go Colors
- Industry: Apparel / Fashion / Retail
- Specialty: Women’s backside-put on (leggings, palazzos, trousers, jeggings, and so forth.)
- Retail Presence: 500+ EBOs as of the IPO length
- Market Share: One of the largest organized players in its section
Details of Go Fashion IPO
Go Fashion IPO Overview:
- IPO Date: November 17 to November 22, 2021
- Listing Date: November 30, 2021
- Price Band: ₹655 to ₹690 in keeping with share
- Issue Size: ₹1,014 crore
- Face Value: ₹10 in step with share
- Lot Size: 21 shares
- Minimum Investment: ₹14,490 (for 1 lot)
The IPO comprised a sparkling trouble of ₹a hundred twenty five crore and an offer on the market (OFS) of ₹889 crore by means of promoters and buyers.
Objectives of the IPO:
- Funding roll-out of EBOs (distinct emblem retailers)
- Working capital necessities
- General corporate purposes
What is Grey Market Premium (GMP)?
The Grey Market Premium (GMP) refers back to the top class at which the IPO stocks are traded in the unofficial grey market before their legitimate listing. It affords an illustration of investor sentiment and the ability of listing price.
🔹 GMP = Grey Market Price – IPO Price
Types of Grey Market Transactions:
- Buy/Sell of Application (Kostak Rate)
- Buy/Sell of Allotment Shares (Grey Market Premium)
Go Fashion IPO GMP: What Was the Buzz?
During the IPO period, the Go Fashion IPO GMP saw sizable motion, reflecting high investor interest. Let’s destroy down the GMP trend:
Go Fashion IPO GMP Timeline:
DateGMP (₹)IPO Price (₹)Expected Listing Price (₹)Nov 17₹470₹690₹1,160Nov 18₹480₹690₹1,170Nov 19₹490₹690₹1,180Nov 20₹500₹690₹1,190Nov 22 (Last Day)₹520₹690₹1,210Nov 29 (Eve of Listing)₹520-530₹690₹1,220
The Go Fashion IPO GMP reached a height of ₹530, which implied a list benefit of around 75% over the issue price.
Go Fashion IPO Subscription Status
Investor interest turned into meditated inside the closely oversubscribed IPO:
Category-Wise Subscription:
- Qualified Institutional Buyers (QIB): one hundred.73x
- Non-Institutional Investors (NII): 262.08x
- Retail Investors: forty nine.70x
- Overall Subscription: 135.46x
📌 The IPO was subscribed over one hundred thirty five times, making it one of the maximum a hit IPOs of 2021.
Listing Day Performance of Go Fashion
Bumper Listing:
- Listing Price on NSE/BSE: ₹1,316
- Listing Gain: ~ninety% over IPO rate of ₹690
- Intra-day High: ₹1,342
- Intra-day Low: ₹1,170
- Closing Price: ₹1,250
The listing surpassed GMP expectations, showcasing sturdy market self assurance inside the emblem’s lengthy-time period boom capability.
Why Was the Go Fashion IPO So Popular?
Key Reasons for High GMP and Investor Interest:
1. Strong Brand Equity
Go Colors is a diagnosed and depended on name in ladies’s style, in particular in bottom-wear, a segment with excessive repeat purchases.
2. Large Addressable Market
The girls’s garb marketplace in India is growing swiftly, and Go Fashion targets a niche that is underpenetrated and underorganized.
3. Robust Financials
Despite pandemic-related disruptions, Go Fashion showcased resilient sales increase and margin development.
4. Efficient Retail Expansion Strategy
With a franchise + direct version, Go Fashion continues capital expenditure low at the same time as growing logo presence.
five. High Investor Demand in Pre-IPO Grey Market
Strong calls within the gray marketplace indicated high confidence from HNIs and retail buyers, further boosting GMP.
Risks to Consider Before Investing in GMP-Based IPOs
While GMP is a beneficial metric, it has obstacles:
Key Risks:
- GMP is unofficial and now not regulated
- GMP may be manipulated by means of marketplace individuals
- High GMP does now not guarantee long-time period performance
- Macroeconomic and industry trends may additionally impact inventory post list
Investors should continually recollect basics in conjunction with GMP to make knowledgeable choices.
Conclusion: Should You Rely on GMP?
The Go Fashion IPO GMP became a strong sign of marketplace optimism, and the real list justified the hype. However, it is vital to recall that GMP is just a trademark, no longer a guarantee. For long-time period investors, understanding the corporation’s fundamentals, enterprise capacity, and boom approach is more essential than short-term gray market tendencies.
✅ Go Fashion IPO GMP changed into a success each in phrases of GMP and list day performance, but buyers must integrate GMP evaluation with due diligence for future IPOs.
FAQs: Go Fashion IPO GMP
❓ What become the highest Go Fashion IPO GMP?
₹530 turned into the highest GMP recorded simply before the list.
❓ Was the GMP prediction accurate?
Yes, the stock listed at ₹1,316, which was above the expected list price primarily based on GMP.
❓ Should traders rely entirely on GMP?
No. GMP is a casual indicator and should be used alongside corporation basics and marketplace analysis.
❓ Is Go Fashion an amazing lengthy-time period investment?
Go Fashion has a sturdy emblem reputation, increasing marketplace percentage, and sturdy boom techniques, making it attractive for lengthy-term investment, challenge to periodic evaluation.
Disclaimer
The information provided in this article is for educational and informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any securities. Readers are advised to consult with a qualified financial advisor before making any investment decisions based on this content.
