Go Fashion India, the company that operates women’s bottom-wear brand Go Colors, made a blockbuster debut on stock exchanges on Tuesday. Shares of the company listed on BSE with 81% premium to its issue price of Rs 690 per share. Similar gains were also registered on the NSE. The stock made a high of Rs 1,341 apiece on the BSE and was trading 85.21% higher at Rs 1,279.40 as of 10:11 am. 

Go fashion’s listing was much better than the Street expectation. Analysts were expecting a listing premium of 65-75%. The company’s Rs 1,013.6-crore IPO, which was open for subscription between November 17 to November 22, witnessed strong response fro investors with the issue getting subscribed 135.46 times. The issue received bids for 1,09,44,34,026 shares against 80,79,491 shares on offer.

The portion reserved for the non-institutional investors, was subscribed 262.08 times while the portion set aside for Qualified institutional investors saw 100.73 times subscription and retail investors subscribed for 49.70 times the reserved portion.

Out of the total IPO size of Rs 1,014 crore, Rs 125 crore was through fresh issue of shares while the remaining Rs 888.61 crore was an offer for sale by existing investors. The company plans to use the funds raised from the fresh issue to open 120 exclusive brand outlets, and meeting working capital needs.

The IPO had received a “subscribe” rating from most of the brokerages because of its multi-channel pan-India distribution network, strong revenue growth, high operating margin, and high return on equity.

Incorporated in 2010, Go Fashion sells a range of women’s bottom-wear products under the brand ‘Go Colors’. The company serves its customers primarily through its extensive network of 459 exclusive brand outlets (EBOs) that are spread across 23 states and union territories in India, as of September 2021.