Gopal Snacks IPO: The preliminary public providing of namkeen and wafer maker Gopal Snacks Ltd, which goes to be closed on Monday, March 11, has seen a bleak response from buyers thus far. The IPO until 11:03 am on the ultimate day of bidding on Monday, has obtained 1.98 occasions subscription garnering bids for two,25,09,579 shares as towards 1,13,81,955 shares on supply.
The Gopal Snacks IPO was opened for public subscription on March 6. The value band of the Rs 650-crore IPO has been mounted at Rs 381-401 apiece.
The retail quota has obtained 2.79 occasions subscription, whereas the non-institutional investor (NII) class has been subscribed 2.46 occasions. The QIB class obtained 0.11 occasions subscription.
The allotment of the Gopal Snacks IPO will happen on March 12, whereas its itemizing will happen on each NSE and BSE on March 14, 2024.
Gopal Snacks IPO GMP Today
According to market observers, unlisted shares of Gopal Snacks Ltd are buying and selling Rs 24 greater within the gray market as in contrast with its situation value. The Rs 24 gray market premium or GMP means the gray market is anticipating a 5.99 per cent itemizing acquire from the general public situation. The GMP is predicated on market sentiments and retains altering.
‘Grey market premium’ signifies buyers’ readiness to pay greater than the problem value.
Gopal Snacks IPO: Should You Subscribe?
Assigning the ‘Subscribe-Long Term’ score, brokerage Anand Rathi in its IPO observe stated, “At the upper price band of Rs 401, GSL is available at a P/E of 45x (FY23 EPS), which appears to be fully priced. Considering its strong topline and bottom line growth, emphasis on improving market presence, vertically integrated manufacturing facilities, lean balance sheet, healthy return ratios and promising industry outlook, we assign a ‘Subscribe’ rating on a medium to long term basis.”
Advising buyers to speculate on this IPO with a medium to lengthy-time period perspective, Mastertrust in its observe stated, “Gopal Snacks offers a diverse selection of quality products that strive to capture the Indian taste under the ‘Gopal’ brand. The company’s brand recognition allows it to stand out in the competitive market as evident from its market position.”
It stated the corporate plans to leverage expertise to additional optimise operations and utilise its unutilised capability and develop manufacturing capability at current services and arrange extra strategically situated facilitiesto launch new merchandise, develop pockets share with customers and develop its shopper base to boost model consciousness. “Investors looking to invest can invest in this IPO with a medium to long-term perspective.”
Gopal Snacks IPO Details
Rajkot-based Gopal Snacks’ proposed situation is solely a proposal on the market (OFS) of fairness shares by promoters and different current shareholders. The OFS contains the sale of shares by Bipinbhai Vithalbhai Hadvani, Gopal Agriproducts Private Ltd and Harsh Sureshkumar Shah.
Gopal Snacks garnered Rs 194 crore from anchor buyers on Tuesday, a day forward of the beginning of its preliminary share sale.
Founded in 1999, Gopal Snacks is a quick-transferring shopper items firm, providing namkeen, western snacks, and different merchandise throughout India and internationally. As on September 2023, the namkeen makers’ merchandise have been bought in 10 states and a couple of Union Territories and has a community of three depots and 617 distributors.
The firm operates three manufacturing services — Rajkot and Modasa in Gujarat, and Nagpur in Maharashtra. Furthermore, it runs three ancillary manufacturing services that principally produce besan, uncooked snack pellets, seasoning, and spices. These are primarily used internally to make completed merchandise like namkeen, gathiya, and snack pellets. The firms’ income from operations elevated from Rs 1,128.86 crore in fiscal 2021 to Rs 1,394.65 crore in fiscal 2023 and revenue grew from Rs 21.12 crore in fiscal 2021 to Rs 112.37 crore in fiscal 2023.
Half of the problem dimension has been reserved for certified institutional buyers, 35 per cent for retail buyers and the remaining 15 per cent for non-institutional buyers. Investors can place bids ranging from a minimal of 37 fairness shares, with the choice to bid in increments of 37 fairness shares thereafter.
Intensive Fiscal Services, Axis Capital and JM Financial are the ebook-operating lead managers to the IPO. The fairness shares of the corporate are proposed to be listed on the BSE and NSE.
