Shares of Go Fashion Limited made a stellar debut on Dalal Street on Tuesday, listing at a premium of 90 per cent compared to the IPO issue price.

The shares of the firm, which operates the leading women’s bottom-wear brand Go Colors, debuted at Rs 1,316 on the Bombay Stock Exchange (BSE). This means the price of each share almost doubled in comparison to the IPO issue price of Rs 690. On the National Stock Exchange (NSE), the shares of the company got listed at Rs 1,310.

While shares of the company have fallen after the strong listing, they were still commanding a premium of nearly 80 per cent on both BSE and NSE at 11 am.

Decoded: Why so many companies are going public in 2021

Analysts had earlier expected a bumper opening for the IPO as the shares of the company were commanding a premium of nearly Rs 500 on the grey market, where unlisted shares of a company trade before they are listed on the primary markets. Therefore, shares of Go Fashion were trading at a 70 per cent premium yesterday.

One of the reasons why the company has got a good response is due to the company’s reasonable IPO valuation and strong business model. The opening could have been even better if markets would not have faced a hurdle in the form of the new Omicron variant of coronavirus.

The price band of the IPO was set at Rs 655-690 and the company raised Rs 1,013.61 crore through the public offering.

The IPO of Go Fashion opened for subscription on November 17 and closed on November 22. The IPO received a strong response as it was subscribed 135.46 times on the final day.

The portion reserved for retail investors was subscribed almost 50 times, while the non-institutional investors quota saw the highest subscription at 262 times. Meanwhile, the portion for Qualified Institutional Buyers (QIBs) was subscribed just over 100 times.