Gopal Snacks IPO Receives Moderate Day 1 Response, Retail Subscriptions at 0.68 Times

6 Mar 2024 , 03:24 PM

On the first day of Gopal Snacks’ IPO, it received a subscription of 0.40. The retail portion saw a subscription of 0.68 times, while non-institutional investors subscribed 0.26 times. Click here to subscribe the IPO.

The qualified institutional buyers (QIB) portion was yet to open. In the unlisted market, Gopal Snacks’ shares commanded a premium of ₹60-65. The IPO, entirely an Offer for Sale (OFS) with up to ₹650 Crore, had earlier secured ₹194 Crore from anchor investors. The price band for the IPO is set at ₹381-401 per share, allowing investors to bid for 37 shares in one lot and multiples thereafter. The allocation reserves 50% for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors. 

As Gopal Snacks is an OFS, the proceeds will go to selling shareholders, including Bipinbhai Vithalbhai, Gopal Agriproducts, and Harsh Sureshkumar. Gopal Snacks, an FMCG company, is a key player in Gujarat, offering a diverse range of savory products under the ‘Gopal’ brand. 

The company operates six manufacturing facilities, and as of September 2023, its product portfolio comprised 84 products with 276 SKUs. In the first half of the fiscal year ending September 2023, the company’s revenue from operations slightly declined by 3% YoY to ₹676 Crore, while the profit after tax increased to ₹55.5 Crore from ₹51.9 Crore in the same period last year. 

The IPO is managed by Intensive Fiscal Services, Axis Capital, and JM Financial, with Link Intime India as the registrar.

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