Gopal Snacks Lists at a Discount at Rs 350 per share

Gopal Snacks Limited is an FMCG company that deals in ethnic and Western snacks, and other products in India and internationally, debuted on the Indian stock market today.

The company’s stock opened at Rs 351 per share on the NSE, reflecting a discount of 12.47% compared to the final issue price of Rs 401 per share. On the BSE, it debuted at Rs 350 per share, representing a discount of around 12.70%. The market capitalization on the BSE stands at Rs 4720 crore.

IPO Proceeds

The Company will not receive any proceeds from the Offer (the “Offer Proceeds”). Instead, all the Offer Proceeds will be received by the Selling Shareholders in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer.

Business Overview

Founded in 1999, Gopal Snacks Limited is an FMCG company that deals in ethnic and Western snacks, and other products in India and internationally. The company offers a variety of snack products including ethnic snacks like namkeen and gathiya, as well as western snacks such as wafers, extruded snacks, and snack pellets. They also provide fast-moving consumer goods such as papad, spices, gram flour or besan, noodles, rusk, and soan papdi. As of November 2023, the company had 276 SKUs along with 84 products from different categories, catering to various tastes and preferences.

Subscription details

On March 11, 2024, the final day of the IPO window, the IPO witnessed a moderate response, with a subscription rate of 9.50 times. The public issue received moderate interest, with the retail category being subscribed 4.22 times, while the QIB and NII categories reached a subscription rate of 18.42 and 10 times respectively.

The IPO price band was between Rs 381 to Rs 401 per share, with a face value of Rs 1 per share and a lot size of 37 shares. The total size of the company’s IPO was Rs 650 crore, and the final share issue price was fixed at Rs 401 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have been disappointed as the stock debuted at a discount and may consider closing their positions. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.