Today, on Wednesday, March 6, Gopal Snacks IPO commences its subscription period, which will extend until Monday, March 11. The Rajkot-based company has successfully garnered ₹193.94 crores from anchor investors. Notably, on Tuesday, March 5, the company disclosed to the bourses that it allocated 48,36,657 equity shares to anchor investors at a price of ₹401 apiece.
The price band for the Gopal Snacks IPO has been set between ₹381 to ₹401 per equity share with a face value of Re 1. The lot size for the IPO is 37 equity shares, and thereafter, investors can subscribe in multiples of 37 equity shares.
In the Gopal Snacks IPO, the allocation of shares is as follows: not more than 50% of the shares are reserved for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and a minimum of 35% of the offer is earmarked for retail investors. Additionally, there is an employee reservation portion, with equity shares totaling up to ₹3.5 crore reserved for employees. Eligible employees participating in this reserved portion will receive a discount of ₹38 per equity share.
Gopal Snacks Limited is promoted by Gopal Agriproducts, Dakshaben Bipinbhai Hadvani, and Bipinbhai Vithalbhai Hadvani.
Under the “Gopal” brand, the company offers a diverse range of savory products including papad, spices, gram flour (besan), noodles, rusk, soan papdi, as well as ethnic snacks like namkeen and gathiya, and western snacks like wafers, extruded snacks, and snack pellets.
According to the red herring prospectus (RHP), the company’s listed peers include Bikaji Foods International Ltd (with a P/E of 104.67) and Prataap Snacks Ltd (with a P/E of 137.87).
Gopal Snacks Limited witnessed significant growth in its profit after tax (PAT), which surged by 170.52% between March 31, 2022, and March 31, 2023. Additionally, the company’s revenue increased by 3.1% during the same period.
The Gopal Snacks IPO consists of an offer-for-sale (OFS) of equity shares valued at ₹650 crore by the promoters and other investors.
This includes shares worth ₹520 crore from Gopal Agriproducts Private Ltd, ₹80 crore from promoter Bipinbhai Vithalbhai Hadvani, and ₹50 crore from another selling stakeholder, Harsh Sureshkumar Shah.
The book running lead managers for the Gopal Namkeen IPO are Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited, with the registrar being Link Intime India Private Ltd.
Today, the Gopal Snacks IPO’s grey market premium (GMP) stands at +65. This suggests that Gopal Snacks’ share price is trading at a premium of ₹65 in the grey market, as reported by investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Gopal Snacks shares is indicated at ₹466 apiece. This represents a 16.21% increase from the IPO price of ₹401.
Today’s IPO grey market premium (GMP) suggests a strong listing based on the activities observed in the last 7 sessions. Analysts at investorgain.com report a range of ₹0 to ₹122 for the GMP, indicating varying levels of investor interest.
The ‘grey market premium’ serves as an indicator of investors’ willingness to pay a premium over the issue price, reflecting market sentiment and demand for the IPO shares.
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