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Tuesday, Jun 28, 2022
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Go Fashion Makes Dream Market Debut, Shares List At 91% Premium, Should You Buy?

Go Fashion shares listed at Rs 1,316, reflecting a steep jump of 90.72 per cent on the BSE. The stock further surged 94.34 per cent to Rs 1,341. At the NSE, it made its debut at Rs 1,310, jumping 89.85 per cent.

Go Fashion Makes Dream Market Debut, Shares List At 91% Premium, Should You Buy?
Go Fashion Makes Dream Market Debut, Shares List At 91% Premium, Should You Buy?
outlookindia.com
2021-12-23T13:23:17+05:30

Shares of Go Fashion, which owns women's clothing brand Go Colors, on Tuesday listed with a huge premium of nearly 91 per cent over its issue price of Rs 690.

It listed at Rs 1,316, reflecting a steep jump of 90.72 per cent on the BSE. The stock further surged 94.34 per cent to Rs 1,341.

At the NSE, it made its debut at Rs 1,310, jumping 89.85 per cent.

The initial public offer of Go Fashion (India) Limited last week received a whopping 135.46 times subscription.

The Rs 1,013.6-crore IPO had a price range of Rs 655-690 per share. JM Financial, DAM Capital Advisors (Formerly IDFC Securities) and ICICI Securities are the lead managers to the issue.

The company is engaged in the development, design, sourcing, marketing and retailing of a range of women's bottom-wear products under the brand 'Go Colors'.

Here is what analysts are saying, as per Mint and Moneycontrol.

Santosh Meena, Head of Research, Swastika Investmart Ltd

The IPO got its debut at Rs 1310 on NSE with a gain of near 90 per cent against its issue price of Rs 690. The aggressive investors who got the allotment can put a stop loss of Rs 1000 and hold the stock with a long-term view, while safe investors can book the profit and wait for new buying opportunities at the lower levels.

Go Colors has a sturdy brand value with fluctuating revenues while the company moved into losses in FY21. However, as the number of working women is increasing along with the evolving fashion trends it is expected that the company can have a strong growth momentum. The company has a strong management team with a mixed bag of financials and it is expected that it may perform well.

Ravi Singhal, Vice Chairman at GCL Securities

Those who got Go Fashion shares via allotment should book 50 per cent profit and get their principal back in their pocket. They should wait with the rest 50 per cent for the immediate target of Rs 1500. Those who fail to get Go Fashion shares through allotment are advised to wait for profit-booking and buy at around Rs 1050 to Rs 1100 levels for an immediate target of Rs 1500 maintaining stop loss at Rs 920.

In case, profit-booking triggers before achieving the Rs 1500 target, those who book profit at current levels are advised to re-enter at Rs 1050 to Rs 1100 levels for Rs 1500 per share target in short term.

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