Go Fashion IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 17th November 2021 - 07:04 pm

The Rs.1,014 crore IPO of Go Fashion India, consisting of a fresh issue of Rs.125 crore and an offer for sale (OFS) of Rs.889 crore, saw decent response on Day-1 of the IPO.

As per the combined bid details put out by the BSE at the close of Day-1, Go Fashion India IPO was subscribed 2.46X overall, with good demand coming from the retail segment but rather tepid demand from the HNI segment and the QIB segment. The issue closes on 22nd November.

As of close of 17th November, out of the 80.79 lakh shares on offer in the IPO, Go Fashion India saw bids for 199.03 lakh shares.

This implies an overall subscription of 2.46X. The granular break-up of subscriptions was dominated by the retail investors while the HNIs and QIB response were tepid. However, the QIB bids and NII bids are expected to gather momentum on the last day, as is the general trend in the IPO market.

Go Fashion India IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	1.25 Times
Non Institutional Investors (NII)	0.44 Times
Retail Individuals	12.14 Times
Employees	N.A.
Overall	2.46 times

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 16th November, Go Fashion India did an anchor placement of 66,10,492 shares at the upper end of the price band of Rs.690 to 33 anchor investors raising Rs.456.12 crore.

The list of QIB investors included a number of marquee global names like Government of Singapore, Monetary Authority of Singapore, Nomura, Fidelity, Neuberger Berman, Volrado Venture, University of Notre Dame and Abu Dhabi Investment Authority (ADIA). Domestic anchor investors included SBI MF, HDFC MF, ICICI Pru MF, Axis MF, Birla MF, SBI Life, Mirae MF; among others.

The QIB portion (net of anchor allocation as explained above) has a quota of 44.07 lakh shares of which it has got bids for 11.02 lakh shares on Day-1, implying a subscription ratio of 0.25X for QIBs at the close of Day-1. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement forebodes well for the Go Fashion India IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 0.44X (getting applications for 9.70 lakh shares against the quota of 22.03 lakh shares). This is a relatively tepid response on Day-1 but of course this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO.

Retail Individuals

The retail portion was subscribed an impressive 12.14X at the end of Day-1, showing strong retail appetite. It must be noted that retail allocation is only 10% in this IPO. For retail investors; out of the 14.69 lakh shares on offer, valid bids were received for 178.31 lakh shares, which included bids for 141.76 lakh shares at the cut-off price.

The IPO is priced in the band of (Rs.655-Rs.690) and will close for subscription on 22nd November 2021.