The Gopal Snacks IPO is available for subscription starting today, March 6, and will close on March 11. The company, based in Rajkot, has already raised ₹193.94 crores from anchor investors, allocating 48,36,657 equity shares at ₹401 each on March 5.
The IPO price band is set between ₹381 to ₹401 per equity share with a face value of Re 1. The lot size is 37 equity shares, and investors can buy in multiples of 37 shares.
In terms of allocation, up to 50% of the shares are reserved for qualified institutional buyers (QIB), at least 15% for non-institutional investors, and a minimum of 35% for retail investors. The employee portion has shares reserved up to ₹3.5 crore, with eligible employees getting a ₹38 discount per equity share.
Gopal Snacks, under the brand “Gopal,” offers a wide range of savory products, including papad, spices, gram flour, noodles, rusk, soan papdi, namkeen, gathiya, wafers, and more.
The company’s promoters are Gopal Agriproducts, Dakshaben Bipinbhai Hadvani, and Bipinbhai Vithalbhai Hadvani.
Gopal Snacks Limited’s profit after tax (PAT) increased by 170.52%, and revenue grew by 3.1% between March 31, 2022, and March 31, 2023.
The IPO comprises an offer-for-sale (OFS) of equity shares worth ₹650 crore by promoters and other investors. The book running lead managers are Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited, with Link Intime India Private Ltd as the registrar.
As of now, the Grey Market Premium (GMP) for Gopal Snacks IPO is +65, indicating a premium of ₹65 in the grey market. The estimated listing price is projected at ₹466, which is 16.21% higher than the IPO price of ₹401.
In a review, Dilip Davda, a contributing editor at Chittorgarh, mentioned that the company is a prominent FMCG player, especially in namkeen and other packaged foods. Despite declining capacity utilization, Gopal Snacks has shown growth in top and bottom lines, suggesting improved margins with consumer-friendly packs. Davda suggests investors may consider the IPO for medium to long-term gains based on FY24 annualized earnings.
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