June 25, 2024

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Applied for Go Fashion shares in IPO? What GMP signals about the issue

Go Fashion IPO: After three days of bidding, Go Fashion IPO got subscribed 135.46 times. The public issue worth 1,013.61 crore got subscribed 49.70 times in the retail category, 100.73 in the QIB category, and 262.08 in the NII category. Meanwhile in grey market, Go Fashion share price has corrected for second successive day. As per the market observers, shares of go Fashion are available at a premium of 380 in grey market today.

Go Fashion IPO GMP

According to the market observers, Go Fashion IPO grey market premium (GMP) today is 380, which is 90 down from its yesterday’s grey market premium of 470. They said that such a fall in the current nosediving market is quite expected. They said that Go Fashion IPO grey market premium has remained around 500 since it became available for bidding. This dip in the grey market price of Go Fashion IPO is due to the fresh selloff on Monday. They said that one should feel relieved as the fall in Go Fashion grey market price is still not to the tune of stock market fall.

What this GMP mean?

Market observers went on to add that GMP reflects an expected listing gain from the public issue. As Go Fashion IPO GMP today is 380, it means that grey market is expecting that Go Fashion shares would list at around 1070 ( 690 + 380), which is around 55 per cent higher from its upper price band.

However, market observers maintained that one should not look at grey market premium as a concrete indicator about an IPO. In fact, it’s financials of the company that gives actual picture of the company.

Highlighting the fundamentals in regard to Go Fashion IPO; Nitin Shahi, Executive Director at Findoc said, “Go Fashion is one of the leading companies in women bottom-wear Industry. The company has a well-diversified product portfolio along with the multi-channel pan India distribution network. Moreover, company has a demonstrated track record of strong financial performance. Further, retail women bottom-wear market is a growing market. The share of organized retailing within women’s Apparels has increased from 19 per cent in 2015 to 27 per cent in the year 2020 is expected to reach 42 per cent by fiscal 2025.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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