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Go Fashion IPO opens: Grey market premium strong, analysts bullish; should you subscribe?

Go Fashion IPO (initial public offering) opens for subscription today and will remain open for bidding until November 22, 2021. Therefore, those who wish to apply for an initial public offering of Rs 1,013.61 crore are busy scanning the company's balance sheet for details. with respect to its financial statements. For potential bidders, there is good news. According to market watchers, Go Fashion's stock is trading at a premium of Rs 560 on the gray market today, which is Rs 30 more than yesterday's premium.

Go Fashion IPO GMP 

Go Fashion's initial public offering (IPO) opens for subscription today and will remain open for bidding until November 22, 2021. Therefore, those who wish to apply for the public offering worth INR 1,013.61 crore They're busy scanning the company's balance sheet to find out. Details about your financial statements. For potential bidders, there is good news. According to market watchers, Go Fashion's stock is trading at a premium of Rs 560 on the gray market today, which is Rs 30 more than yesterday's premium.

Go Fashion IPO

What does this GMP mean?

Market watchers added that GMP simply reflects the estimated outstanding earnings from the public launch. Given that the GMP of today's Go Fashion IPO is  ₹560, this simply means that the gray market expects to trade Go Fashion's stock at around ₹1250 ( ₹690 + ₹560), which is roughly 80% above its price range of Rs 655 to Rs 690 per equity share.

Go to Fashion IPO Subscribe or not

Bidders were advised to consider the company's financial statements in lieu of the gray market premium; Avinash Gorakshkar, Head of Research at Profitmart Securities, said: "The gray market premium is not a guarantee of trading earnings. Therefore, one should look at the financial statements of the company. The issuance is quasi-public in nature OFS ( from Rs 1013.61 crore, only 125 rupees will come out). From new launches) and the launch valuations are also higher. Some hike can be expected on this issue due to the recent uproar in the textile sector. Therefore, it is recommended to bidders going to the company's balance sheet very precisely based on a good manufacturing schedule. "

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