Go Fashion IPO - Subscription Day 3

5paisa Research Team 5paisa Research Team 22nd November 2021 - 06:00 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 and built on it on Day-2.

As per the combined bid details put out by the BSE at the close of Day-3, Go Fashion India IPO was subscribed a whopping 135.40X overall, with good demand coming from the HNI / NII segment and QIB segment followed by the retail segment. The issue has closed for subscription on Monday, 22nd November.

As of close of 22nd November, out of the 80.79 lakh shares on offer in the IPO, Go Fashion India saw bids for 10,939.93 lakh shares. This implies an overall subscription of 135.40X. The granular break-up of subscriptions was dominated by the HNIs / NIIs and the QIBs followed by retail investors.

As expected, the QIB bids and NII bids gathered tremendous momentum only on the last day, as has been the general trend in the IPO market.

Go Fashion India IPO Subscription Day-3

Category	Subscription Status
Qualified Institutional Buyers (QIB)	100.73 Times
Non Institutional Investors (NII)	262.08 Times
Retail Individuals	49.40 Times
Employees	N.A.
Overall	135.40 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.

Check - Go Fashion IPO - Subscription Day 2

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 4,439.24 lakh shares at the close of Day-3, implying a subscription ratio of 100.73X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and that is what we saw in the case of Go Fashion, although the indications of robust institutional participation were already there in the anchor demand itself.

HNI / NII Portion

The HNI portion got subscribed 262.08X (getting applications for 5,775.01 lakh shares against the quota of 22.03 lakh shares). Bulk of the funded applications and corporate applications, came in on the last day of the Go Fashion IPO. That explains why the HNI portion has been subscribed so aggressively on the last day of the IPO.

Retail Individuals

The retail portion was subscribed an impressive 49.40X at the end of Day-3, 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 725.70 lakh shares, which included bids for 577.18 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.655-Rs.690) and has closed for subscription on 22nd November 2021.

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