Go Fashion IPO (Initial Public Offering) will open for subscription on 17th November 2021 and it will remain open for bidding till 22nd November 2021. So, those who want to apply for the public issue worth ₹1,013.61 crore are busy scanning balance sheet of the company to find out details related to its financials. For such potential bidders, there is a piece of good news. As per market observers, Go Fashion shares are trading at a premium of ₹430 in the grey market today, which is ₹80 up from its yesterday’s premium.
Go Fashion IPO GMP
As mentioned above, Go Fashion IPO GMP (grey market premium) today is ₹430, which is ₹80 higher from its yesterday’s GMP of ₹350. Market observers believe that such rise in Go Fashion IPO grey market premium can be attributed to change in market sentiment on Friday session. They said that rising grey market price of Go Fashion IPO may lead to robust response from the bidders as some section of the IPO bidders take grey market numbers quite seriously.
What this GMP mean?
Market observers went on to add that GMP simply reflects an estimated listing gain from the public issue. As Go Fashion IPO GMP today is ₹430, it simply means that grey market expects that Go Fashion shares would list at around ₹1120 ( ₹690 + ₹430), which is around 60 per cent higher from its price band of ₹655 to ₹690 per equity level.
Go Fashion IPO subscribe or not
Advising bidders to look at company financials instead of grey market premium; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Grey market premium is not a guarantee for listing gain. So, one should look at the financials of the company. The public issue is almost OFS in nature (out of ₹1013.61 crore, only ₹125 will come from fresh issues) and the valuations of the issue is also higher. One can expect some bullish trend in the issue due to the recent buzz in textile sector. So, bidders are advised to go by the balance sheet of the company very minutely rather relying on the GMP.”
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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