Shares of Go Fashion (India) nearly doubled on their first day of trading on Tuesday, a sign that the IPO frenzy is still intact despite the Paytm setback and the bout of correction in the markets. The apparel retailer’s shares touched a high of Rs 1,341 compared its IPO price of Rs 690 per share. the stock settled at Rs 1,253 with a gain of 82 per cent over its issue price.
The strong listing follows a hugely successful IPO, where demand exceed supply by 135 times.
Go Fashion’s IPO comprised a fresh issue of equity shares aggregating up to Rs 125 crore and an offer-for-sale (OFS) of Rs 890 crore. Among the selling shareholders in the IPO was ICICI Venture, the alternative asset arm of ICICI Bank. Its fourth private equity fund India Advantage Fund Series 4 (IAF4) divested about half its stake in the company with a 5x gain.
“We are pleased to have supported the company in its growth journey of the last 4 years, during which Go Fashions emerged as India’s largest women’s legwear brand, achieved 3x growth in owned store footprint, an excellent revenue scale up and increase in profit margins. We believe the company is well placed for further growth going forward,” said Puneet Nanda, MD and CEO, ICICI Venture.
Go Fashion is engaged in retailing of women’s wear products. It has a range of products sold across multiple categories: ethnic wear, western wear, fusion wear, athleisure, denim, and sizes.