Go Fashion IPO: What GMP signals after announcement of share allocation

27 Nov , 2021 By : Kanchan Joshi

Go Fashion IPO allotment status has been announced and now all eyes are set on the listing date, which is most likely on 30th November 2021. However, ahead of Go Fashion IPO listing date, grey market is giving strong signal in regard to listing gain from the public issue worth Rs1,013.61 crore. As per the market observers, Go Fashion share price in the grey market has gone up despite heavy selloff on Friday session at Indian stock market.

Go Fashion IPO GMP

According to market observers, Go Fashion IPO GMP (grey market premium) today is Rs500, which is Rs20 up from its yesterday's evening grey market premium of Rs480. They went on to add that yesterday morning, Go Fashion IPO GMP was Rs540 that went on to dip up to Rs480 by evening. But, in morning today there were some recovery in Go Fahion share price in the grey market. Market observers said that this rise in the Go Fashion IPO GMP is good sign as this rise has been registered after heavy bloodbath at Dalal Street.

What this GMP mean?

Market observers went on to add that Go Fashion IPO GMP today is Rs500, which means grey market is expecting Go Fashion share price listing at around Rs1190 ( Rs690 and Rs500), which is more than 70 per cent from its price band of Rs655 to Rs690 per equity share.

However, stock market experts said that grey market is not an ideal indicator for assessment of a public issue. They said that it's financials of the company that gives ideal picture about the company and advised lucky bidders of Go Fashion IPO to remain away from making any conclusion from this rise in Go Fashion IPO GMP.

Expecting better listing gain from Go Fashion IPO; Ravi Singh, Head of Research & Vice President at ShareIndia said, "In the current market scenario, most of the IPO's are expected to perform well. We expect Go Fashion IPO to also receive a good response during listing. The boost in textile sector will also help Go Fashion in longer term. However, we advise the investors to book the premium at the time of listing."