Go Colors owner Go Fashion shares list at 90 per cent premium over issue price

By: WE Staff | Tuesday, 30 November 2021

The owner of women’s bottom-wear brand Go Colors, Go Fashion (India), made a stellar stock market debut. An 89.85 per cent premium over the issue price of ₹690, shares of the company listed at ₹1,310 a piece on the exchanges.

Amarjeet Maurya, analyst, Angel One Ltd, had said that in terms of valuations, the post-issue FY20 EV/ EBITDA works out to 30.2 times which is almost in a similar range compared to its peers TCNS Clothing Co. “Further, Go Fashion India has a better track record of revenue growth, higher operating margin & high Return on equity compared to TCNS Clothing Co,” he said.

Net proceeds will be sued to fund working capital requirements, the rollout of 120 new exclusive brand outlets and general corporate purposes.

“At the upper price band of ₹690, the stock is available at market capitalisation/sales of 14.9 times (FY21) which appears fully priced,” said Geojit Financial Services Ltd. He added that a growing number of working women, rise in disposable income, consumer shift towards buying from safe and hygienic facilities triggered by covid augurs well for GFIL.

“Go Fashion 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. At the upper end of the price brand, it is valued at 9.4 times, 14.6 times EV/sales for FY20, FY21, respectively,” said analysts at ICICIdirect.

With a market share of 8 per cent in the branded women’s bottom-wear market in FY20, Go Fashion is a women’s bottom-wear brand in India. With a significant number of stores in southern and western India, the company has a pan India network of 459 EBOs.