Shares of Gopal Snacks IPO are reserved for QIB, NII, retail investors, and employees. provides qualifying employees with a discount of ₹38 per share. Gopal Agriproducts, Dakshaben Bipinbhai Hadvani, and Bipinbhai Vithalbhai Hadvani are the promoters.
To collect up to Rs 650 crore, Gopal Snacks Ltd. launched its initial public offering on Wednesday. Bids on the offering were meek, making up only 56% of the total offer. In the pure-play offer, the promoters intend to sell 1.62 crore shares at a price range of Rs 381–401 per share.
Gopal Snacks IPO subscription status
On the first day of operation, the IPO got off to a slow start. Nonetheless, Gopal Snacks has two more days of optimism. According to NSE data, the overall subscription status for the Gopal Snacks IPO was 40%. Qualified Institutional Buyers (QIB) have subscribed 8%, while Non-Institutional Investors (NII) have reserved 34% of the space and individual investors have subscribed 59% of the space. 1.19 subscriptions have been made to the employee component.
The subscription period for Gopal Snacks' initial public offering (IPO) began yesterday, March 6, and ends on Monday, March 11. The anchor investors have contributed ₹193.94 crores to the company. On Tuesday, March 5, the business informed the stock exchanges that it had allotted 48,36,657 equity shares, valued at ₹401 each, to anchor investors.
The initial public offering (IPO) price band for Gopal Snacks has been set at ₹381 to ₹401 per equity share with a face value of Re 1. The lot size is 37 equity shares, further divided into multiples of 37 equity shares.
For qualified institutional buyers (QIBs), non-institutional institutional investors (NIIs), and individual investors, it has reserved a minimum of 35% of the shares in the public offering, but not more than 50% of the shares overall. Shares of reserved equity amounting ₹3.5 crore have been allocated to the employee part. Employers who are qualified to bid in the employee reservation category will receive a discount of ₹38 per equity share.
The promoters of the company are Gopal Agriproducts, Bipinbhai Vithalbhai Hadvani, and Dakshaben Bipinbhai Hadvani. The company sells a variety of savoury goods under the "Gopal" name. Fast-moving consumer items including papad, spices, noodles, rusk, besan flour, and soan papdi are among them. Other snacks from different cultures, like namkeen and gathiya, are also included, as are wafers, extruded snacks, and snack pellets.
According to the red herring prospectus (RHP), Prataap Snacks Ltd. (P/E of 137.87) and Bikaji Foods International Ltd. (P/E of 104.67) are the company's listed rivals.
Gopal Snacks Limited saw a 170.52% increase in profit after tax (PAT) between March 31, 2022, and March 31, 2023, despite a 3.1% increase in revenue.
Gopal Snacks IPO Subscription Status
Gopal Snacks IPO has received bids for 55,13,481 shares against 1,19,79,993 shares on offer, at 14:22 IST, according to data from the NSE.
The retail investors' portion received bids for 39,90,006 shares against 59,38,977 shares on offer for this segment.
The non-institutional investors' portion received bids for 11,13,700 shares against 25,45,276 on offer for this segment.
The QIBs portion has received 2,90,487 shares against 33,93,700 shares on offer for this segment.
The employee portion has received 1,25,498 shares against 1,02,040 shares on offer for this segment.
Gopal Snacks IPO GMP Today
The grey market premium, or IPO GMP, for Gopal Snacks is +30. According to investorgain.com, this shows that the price of Gopal Snacks' shares was selling at a premium of ₹30 on the grey market.
Gopal Snacks' expected listing price is ₹430 per share, which is 7.48% more than the IPO price of ₹401, taking into account the upper end of the IPO pricing band and the current premium in the grey market.
Should You Subscribe?
Here are some factors to consider when deciding whether to subscribe to the Gopal Snacks Limited IPO:
Strengths:
Strong brand recognition: Gopal Snacks enjoys a strong brand image, particularly in its core market of Gujarat.
Diversified product portfolio: The company offers a wide range of products, catering to diverse consumer preferences.
Vertically integrated operations: Gopal Snacks controls its production process from raw material procurement to final packaging, potentially leading to cost efficiencies.
Focus on quality: The company prioritizes using high-quality ingredients, fostering brand loyalty and customer trust.
Financial stability: Gopal Snacks has demonstrated consistent profitability, indicating a strong financial foundation.
Weaknesses:
Limited operational history: As a relatively young company, Gopal Snacks may have a shorter track record compared to established competitors.
Reliance on regional markets: A significant portion of the company's revenue comes from Gujarat, which could pose a risk if they struggle to expand into new markets.
Competition: The Indian snack market is highly competitive, with established players and emerging brands vying for market share.
Opportunities:
Growing snack market: The Indian snack market is expected to reach ₹5.3 trillion by 2025, presenting an opportunity for growth.
Expansion plans: Gopal Snacks aims to expand its geographic reach and product portfolio, which could fuel future growth.
Investment in R&D: The company's focus on innovation could help them stay ahead of the curve in a dynamic market.
Threats:
Volatile raw material prices: Fluctuations in the prices of key ingredients could impact profitability.
Changes in consumer preferences: Consumer preferences can shift quickly, and Gopal Snacks needs to adapt to these changes to remain relevant.
Regulatory changes: New regulations or changes in tax policies could impact the company's operations and profitability.
FAQs
Q: What is an IPO?
An Initial Public Offering (IPO) is the first time a private company sells its shares to the public on a stock exchange.
Q: How can I apply for an IPO?
You can apply for an IPO through your brokerage account or a participating bank's online platform.
Q: What is ASBA?
ASBA (Application Supported by Blocked Amount) is a method of applying for IPOs where your bid amount gets blocked in your bank account only if your application is selected for allotment.
Q: Can everyone apply for an IPO?
While most IPOs are open to retail investors, some may have eligibility criteria based on income, investment experience, or other factors. Check the IPO prospectus for details.
Q: What is the minimum investment amount for an IPO?
The minimum investment amount varies depending on the IPO and the lot size (minimum number of shares) set by the company.
Q: What happens if my IPO application is not selected?
If your application isn't selected, the blocked amount (if applied through ASBA) will be released back to your bank account.
Q: When will I receive the shares if my application is successful?
Shares are typically credited to your Demat account within a few days after the allotment is finalized.
Q: Can I sell my IPO shares immediately after listing?
Yes, you can generally sell your IPO shares as soon as they are listed on the stock exchange. However, consider market conditions and investment goals before making any decisions.
Q: Can I make payment for an IPO through UPI (Unified Payments Interface)?
While not all platforms offer UPI yet, some online platforms and brokerages are increasingly integrating UPI as a payment option for IPO applications. Check with your chosen platform for confirmation.
Q: What are the risks involved in investing in IPOs?
IPOs involve inherent risks, as they are often from younger companies with less established track records. Their future performance is uncertain, and the share price can be volatile after listing. Carefully research the company and the IPO details before investing.