Shares of Go Fashion, the operator of Go Colors brand, remained strong throughout the session, and closed 81.5 percent higher on the day of the stock's debut amid a volatile market.
The stock opened at Rs 1,316 on the BSE, a massive 90.7 percent premium over the issue price of Rs 690. It touched an intraday high of Rs 1,341 and low of Rs 1,144.15, before closing at Rs 1,252.60 with volume of 10.39 lakh equity shares.
On the National Stock Exchange, the stock touched a day's high of Rs 1,339.90 and low of Rs 1,143.10, before closing 81.70 percent higher at Rs 1,253.70. It traded with volume of 1.75 crore equity shares.
The operator of women's bottom-wear brand Go Colors has mopped up Rs 1,014 crore through its public issue, which included a fresh issue of shares worth Rs 125 crore. The price band for the offer was at Rs 655-690 per equity share.
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"We like Go Fashion (India) considering it is the first company to launch an exclusive brand dedicated to women's bottom-wear. It has invested in digital & omni-channel engagement, and is focused on e-retail, distributive growth strategy to tap customers from tier 1 to tier 3 cities and expansion plans for existing and newer geographies," said Vinod Nair, Head of Research at Geojit Financial Services.
Nair believes a growing number of working women, higher disposable income, and a shift towards safe and hygienic facilities triggered by COVID-19 augur well for the company. "The opening-up of markets will support revenue growth going forward."
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Go Fashion had reported a loss of Rs 3.54 crore in the financial year FY21 as against a profit of Rs 52.63 crore in the previous financial year. Revenue during the year fell to Rs 250.66 crore, from Rs 392 crore.
For the June quarter, loss stood at Rs 18.99 crore as against a loss of Rs 8.59 crore in the corresponding period last fiscal, although revenue increased sharply to Rs 30.99 crore from Rs 10.3 crore
"With a strong appreciation over the offer price, it appears the current positives are largely factored in. Given the solid listing, profit booking is expected; long-term investors can accumulate the stock in the dip," said Nair.
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Go Fashion is engaged in the development, design, sourcing, marketing and retailing a range of women's bottom-wear products under the brand, 'Go Colors'. It offers products through its extensive network of 459 exclusive brand outlets that are spread across 23 states and Union Territories in India as of September 2021. In addition, its distribution channels include large format stores (LFSs), and it also sell products through its own website and online marketplaces and through multi-brand outlets (MBOs).
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