Go Fashion IPO opens today. Here’s what you need to know
Go Fashion IPO, with a price band of ₹655-690 a share, opened for subscription on Tuesday, November 17, and conclude on November 22.
Live Mint reported citing market observers that shares of Go Fashion, the Go Colors owner, are trading at a premium of ₹560 in the grey market on Wednesday—up ₹30 from its premium on Tuesday. Go Fashion IPO GMP rose from ₹430 to ₹30, a ₹100 jump in its share price in the grey market. Market observers said, according to Live Mint, that the rise in Go Fashion IPO grey market premium may lead to robust response from the bidders.
Go Fashion IPO comprises fresh issue of equity shares aggregating up to ₹125 crore and an offer for sale (OFS) of up to 12,878,389 equity shares by promoter and existing shareholders.
The PKS Family Trust and VKS Family Trust are going to offload 7.45 lakh equity shares each, Sequoia Capital India Investments will sell up to 74.98 lakh shares, India Advantage Fund S4 I will divest up to 33.11 lakh shares and Dynamic India Fund S4 US I will sell up to 5.76 lakh shares.
PKS Family and VKS Family Trust hold 28.74 per cent stake each in Go Fashion, Sequoia Capital holds 28.73 per cent, India Advantage Fund has 12.69 per cent and Dynamic India Fund owns 1.1 per cent stake in the firm.
According to a circular uploaded on the BSE website, Go Fashion has decided to allocate a total of 66,10,492 equity shares to 33 anchor investors at ₹690 apiece, aggregating the transaction size to ₹456.12 crore.
At the upper end of the price band, the Go Fashion IPO is expected to fetch 1,013.6 crore.
The Singapore government Monetary Authority of Singapore, Nomura, Abu Dhabi Investment Authority, Fidelity, SBI Mutual Fund (MF), ICICI Prudential MF, HDFC MF, Axis MF, Aditya Birla Sun Life MF and SBI Life Insurance Company are among the anchor investors.
The proceeds from the fresh issue will be used to fund the roll-out of 120 new exclusive brand outlets, to support working capital requirements and general corporate purposes.
About 75 per cent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional investors, while the remaining 10 per cent has been set aside for retail investors.
Investors can bid for a minimum of 21 equity shares and in multiple thereof.
Among the lead managers to the issue are JM Financial, DAM Capital Advisors (Formerly IDFC Securities) and ICICI Securities. Go Fashion equity shares will be listed on the BSE and the NSE.
Go Fashion, which is engaged in the development, design, sourcing, marketing and retailing a range of women's bottom-wear products under Go Colors, said on Tuesday that it has raised a little over ₹456 crore from anchor investors ahead of its IPO roll-out.
(With agency inputs)