Go Fashion gains another 4% after stellar debut as FPIs purchase stake

Shares of Go Fashion (India) have moved higher by 4 per cent to Rs 1,310, bouncing back 8 per cent from intra-day low of Rs 1,211 on the National Stock Exchange (NSE) on Wednesday after the foreign portfolio investors (FPIs) bought 1 million shares of the company via open market on Tuesday.

On November 30, 2021, Nomura India Investment Fund Mother Fund - The Mtbj Ac Nomura India Inves FD (725,000 shares) and Nomura Funds Ireland Public Limited Company - Nomura Funds Ireland - India Equity (275,000 shares) have collectively purchased 1 million equity shares of Go Fashion at price of Rs 1,277.97 per share on the NSE via bulk deals, the exchange data shows. The names of the sellers not ascertained immediately.

On Tuesday, Go Fashions made a stellar market debut, as the stock was listed at Rs 1,310, a 90 per cent premium over its issue price of Rs 690 per share. It hit a high of Rs 1,339.90, and closed at Rs 1,253.70 on the NSE.

At 12:30 pm, the stock was trading 4 per cent higher at Rs 1,300, as compared to 0.97 per cent rise in the Nifty50. A combined around 4 million shares changed hands on the NSE and BSE.

Go Fashions is the first company to launch a brand exclusively dedicated to the women’s bottom-wear category. It is a play on the unorganised to the modern retail shift. The company is a one stop shop for women’s bottom-wear under the brand ‘Go Colors’. It is among the few apparel players in India to have identified the market opportunity in women’s bottom-wear and acted as a ‘category creator’ for the same.

The initial public offering (IPO) of Go Fashion had got strong response from all types of investors with issue was subscribed a staggering 135 times. The company plans to use the proceeds of the fresh issue to fund the roll-out of 120 new exclusive brand outlets and support working capital requirements.

Go Colors has a sturdy brand value with fluctuating revenues while the company moved into losses in FY21. However, as the number of working women is increasing along with the evolving fashion trends it is expected that the company can have a strong growth momentum. The company has a strong management team with a mixed bag of financials and it is expected that it may perform well, Santosh Meena, Head of Research, Swastika Investmart said post listing of Go Fashion.

The aggressive investors who got the allotment can put a stop loss of Rs 1000 and hold the stock with a long-term view, while safe investors can book the profit and wait for new buying opportunities at the lower levels, the brokerage firm said.