Gopal Snacks IPO Sees Modest Response, Subscribed 2.12 Times on Final Day

11 Mar 2024 , 12:28 PM

The Gopal Snacks Ltd IPO, closing on March 11, has received a lacklustre response from investors so far.

At the time of writing on the final day, the IPO has garnered 2.12 times subscriptions. The IPO, with a price band of ₹381-401 apiece, opened for public subscription on March 6, aiming to raise ₹650 Crore.

The retail quota is oversubscribed at 2.83 times, the non-institutional investor (NII) category at 3.04 times, while the QIB category received 0.11 times subscription.

Allotment for the Gopal Snacks IPO is scheduled for March 12, and listing on both NSE and BSE is set for March 14, 2024.

The IPO is entirely an Offer for Sale (OFS) of equity shares by promoters and existing shareholders, including Bipinbhai Vithalbhai Hadvani, Gopal Agriproducts Private Ltd, and Harsh Sureshkumar Shah.

Gopal Snacks, founded in 1999, is a Rajkot-based FMCG company specializing in Namkeen, western snacks, and other products, with a presence in 10 states and 2 Union Territories.

The company operates three manufacturing facilities in Gujarat and Maharashtra, along with three ancillary facilities producing besan, raw snack pellets, seasoning, and spices.

The revenue from operations increased from ₹1,128.86 Crore in fiscal 2021 to ₹1,394.65 Crore in fiscal 2023, and the profit grew from ₹21.12 Crore in fiscal 2021 to ₹112.37 Crore in fiscal 2023.

Half of the IPO size is reserved for qualified institutional investors, 35% for retail investors, and the remaining 15% for non-institutional investors. The book-running lead managers for the IPO are Intensive Fiscal Services, Axis Capital, and JM Financial, and the equity shares are proposed to be listed on the BSE and NSE.

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