Go Fashion extends losses into 5th day; hits lowest level since listing

The stock of the company, which owns women's wear brand Go Colors, slipped 8 per cent to Rs 1,051.25 on the BSE in Friday's intra-day trade

Shares of Go Fashion (India) slipped 8 per cent to Rs 1,051.25 on the BSE in Friday's intra-day trade. The stock of the company, which owns women's wear brand Go Colors, was trading lower for the fifth straight day, having fallen 13 per cent during the period. In comparison, the S&P BSE Sensex was down 2.7 per cent during the week.

At 11:40 am, Go Fashion was down 7 per cent at Rs 1,069.30 on the BSE, as compared to a 1.3-per cent decline in the benchmark index. With today's fall, the stock has corrected 22 per cent from its high of Rs 1,341, touched on its listing day i.e. November 30, 2021.

Shares of Go Fashion had made a solid market debut, with stock getting listed at Rs 1,316, a 91 per cent premium over its issue price of Rs 690 per share on the BSE. Currently, the stock is 52 per cent higher against its issue price.

Last week, on December 9, 2021, SBI Mutual Fund had bought 3 million equity shares of Go Fashion for Rs 351.6 crore. The mutual fund purchased shares at average price of Rs 1,172 per share from India Advantage Fund S4 on the NSE, the bulk deal data shows.

The one-month mandatory lock-in period for anchor investors of Go Fashion will end on December 27, 2021. The company had raised Rs 455 crore from anchor investors by allotting 6.6 million shares at Rs 690 apiece. Government of Singapore, Abu Dhabi Investment Trust, Nomura, SBI MF and Axis MF are some of the institutional investors who were given allotment in the anchor category.

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.

"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. The aggressive investors who got the allotment can put a stop loss of Rs 1,000  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," Santosh Meena, Head of Research, Swastika Investmart had said post listing of Go Fashion shares.