The initial public offering (IPO) of Gopal Namkeen Limited, which commenced on March 6, 2024, is set to close today, March 11, 2024. Investors have until the end of the day to apply for the public issue. The price band for the Gopal Snacks IPO is fixed at ₹381 to ₹401 per equity share, with the listing date anticipated to be on March 14, 2024.
As per the latest subscription status, the book build issue was oversubscribed 1.40 times within the first two days of bidding. Additionally, the grey market is indicating a positive listing for the FMCG company’s shares, with the Gopal Snacks IPO Grey Market Premium (GMP) currently standing at ₹25, according to stock market observers.
Gopal Snacks IPO GMP Today: Grey Market Premium Stands at ₹25
Market observers have reported that the grey market premium (GMP) for Gopal Snacks IPO is currently at ₹25. Experts anticipate a further improvement in Gopal Snacks IPO GMP, considering the positive sentiment in the secondary market.
Analysts have noted that the 50-stock index is nearing the 22,750 levels, suggesting a bullish trend for Gopal Snacks IPO on Monday. However, it’s important to highlight that Gopal Snacks IPO GMP concluded at ₹45 on Thursday, indicating a slightly cautious sentiment in the grey market over the three-day weekend.
Gopal Snacks IPO Subscription Status Update
As of 10:51 AM on the days of bidding, the book build issue of Gopal Snacks IPO has been subscribed 1.83 times. Notably, the retail portion of the public issue has seen robust demand and has been oversubscribed 2.59 times. Meanwhile, the Non-Institutional Investor (NII) portion of the public issue has been subscribed 2.24 times, while the Qualified Institutional Buyer (QIB) segment has been subscribed 0.10 times.
Gopal Snacks IPO Review: Subscribe with Caution
Rajan Shinde, Research Analyst at Mehta Equities, has given a “subscribe” tag to Gopal Snacks IPO, stating that at the upper band of Rs. 401/-, the issue is reasonably priced with a P/E ratio of 45x based on annualized FY 2024 earnings. He highlighted the company’s strong brand recognition and advanced manufacturing capabilities as factors driving long-term growth. However, he cautioned investors about the 100% Offer for Sale (OFS) component, expressing concern for new investors.
Choice Broking has also recommended a “subscribe” rating for the IPO, citing a fully priced valuation and an EV/TTM sales multiple of 3.7 times, in line with peer averages. They advise caution while subscribing to the issue.
Overall, while both analysts recommend subscribing to the Gopal Snacks IPO, investors are advised to exercise caution and consider the company’s valuation and competitive landscape before making investment decisions.
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