New Delhi: The Rs 1,014 crore IPO of Go Fashion (India) has received a strong response from investors. The issue, which kicked off for subscription on Wednesday, sailed through on the first day of the bidding process and was subscribed over 3 times on the second day of the bidding today.

The company is selling its shares in the range of Rs 655-690 during the three-day bidding process. The issue can be subscribed till Wednesday, November 22. The stock market is shut on Friday for Guru Nanak Jayanti, making it an extended weekend.

According to data from BSE, the issue attracted bids for 2,44,95,450 equity shares, or 3.03 times, as of 10.45 am on Day 2. The company offered 80,79,491 equity shares in its initial stake sale.
The issue saw heavy bidding from retail bidders, and the quota was subscribed about 14.83 times so far. The portion for non-institutional investors saw 81 per cent bidding, whereas qualified institutional investors bid for 27 per cent of their quota, data suggested.

The company has received mostly positive response from brokerages.
Marwadi Shares and Finance said considering TTM as of June 2021 sales of Rs 271.4 crore on a post-issue basis, the company is going to list at market cap/sales of 13.73 with a market cap of Rs 3,726.6 crore, while its peers namely Page industries and Trent are trading at market cap/sales of 13.21 and 11.89, respectively.
"The company is a renowned women’s bottom wear in India with a well-diversified portfolio, multi-channel pan India distribution network and reasonable valuations compared to its peers," the brokerage added, giving it a subscribe rating.

A day before the IPO, Go Fashion (India) allotted 66,10,492 equity shares to 33 anchor investors at Rs 690 apeice to raise Rs 456.12 crore.
The list of anchor investors includes the Government of Singapore, Abu Dhabi Investment Authority, Fidelity Finds, Nomura and various domestic mutual funds such as SBI, ICICI, Aditya Birla, Kotak and Axis, among others.

The IPO is a mix of issuance of fresh equity shares worth Rs 125 crore, whereas the promoters and existing shareholders will offload 12,878,389 equity shares worth Rs 888.6 via offer for sale (OFS) route.
Go Fashion (India) is one of the largest bottom-wear ranges in women’s apparel, with an 8 per cent market share in women’s branded bottom-wear. The company offers products in all categories including ethnic, western wear, fusion and denims. It has leveraged its first-mover advantage to create a direct-to-consumer brand. It intends to expand further in loungewear and athleisure.