Gopal Snacks IPO opens for bidding today: Check latest GMP, subscription status, review, key dates, more. Apply or not?

Gopal Snacks IPO opens for subscription today (Wednesday, March 6), and will close on Monday, March 11. The Rajkot-based company has raised ₹193.94 crores from the anchor investors. The company notified the bourses that it allocated 48,36,657 equity shares at ₹401 apiece on Tuesday, March 05, to anchor investors.

Gopal Snacks IPO price band has been fixed in the range of ₹381 to ₹401 per equity share of the face value of Re 1. The lot size is 37 equity shares and in multiples of 37 equity shares thereafter.

Also Read: Gopal Snacks IPO to open tomorrow; Here are 10 things to know before subscribing to the issue

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It has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. The employee portion has been reserved equity shares aggregating up to ₹3.5 crore. A discount of ₹38 per equity share is being offered to eligible employees bidding in the employee reservation portion.

The company's promoters Gopal Agriproducts, Dakshaben Bipinbhai Hadvani, and Bipinbhai Vithalbhai Hadvani.

Under the "Gopal" brand, the company offers a broad range of savoury products. These include fast-moving consumer goods like papad, spices, gramme flour or besan, noodles, rusk, and soan papdi, as well as ethnic snacks like namkeen and gathiya and western snacks like wafers, extruded snacks, and snack pellets.

The company's listed peers as per the red herring prospectus (RHP) are Bikaji Foods International Ltd (with a P/E of 104.67), and Prataap Snacks Ltd (with a P/E of 137.87).

Between March 31, 2022, and March 31, 2023, Gopal Snacks Limited's profit after tax (PAT) climbed by 170.52% while its revenue increased by 3.1%.

Also Read: Gopal Snacks IPO: Rajkot-based company raises ₹194 crore from anchor investors

Gopal Snacks IPO subscription status

Although the issue got off to a sluggish note, the employee portion received good interest in it the first day. Gopal Snacks IPO subscription status on day was 56%, as per BSE data. The retail portion has been subscribed 89%, Non Institutional Investors has been booked 49%, Qualified Institutional Buyers portion is yet to be booked. The employee portion has been subscribed 1.64 times.

Gopal Snacks IPO has received bids for 66,96,667 shares against 1,19,79,993 shares on offer, according to data from the BSE.

Gopal Snacks IPO details

Gopal Snacks IPO comprises an offer-for-sale (OFS) of equity shares worth ₹650 crore by the promoters and other investors.

In addition to Gopal Agriproducts Private Ltd (selling shares worth ₹520 crore) and promoter Bipinbhai Vithalbhai Hadvani (selling shares worth ₹80 crore), there will be another selling stakeholder, Harsh Sureshkumar Shah (selling shares worth ₹50 crore).

The Gopal Namkeen IPO's book running lead managers are Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited, and the registrar is Link Intime India Private Ltd.

Also Read: Gopal Snacks IPO: Price band set at ₹381-401 per share; check issue details, key dates, more

Gopal Snacks IPO GMP today 

Gopal Snacks IPO GMP or grey market premium is +65. This indicates Gopal Snacks share price was trading at a premium of ₹65 in the grey market, according to 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 share price is indicated at ₹466 apiece, which is 16.21% higher than the IPO price of ₹401.

Based on last 7 sessions' grey market activities, today's IPO GMP expects a strong listing. The lowest GMP is ₹0, while the highest GMP is ₹122, as per investorgain.com analysts.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Gopal Snacks IPO Review 

Dilip Davda

“The company is one of the largest and prominent FMCG company mainly in namkeen and other ready to eat packaged foods. It has posted growth in its top and bottom lines despite declining capacity utilization, indicating its scaling margins with economical consumer packs. Based on FY24 annualised earnings, the issue appears full priced. Investors may park funds for the medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

Swastika Investmart Ltd

The brokerage claims that Gopal Snacks is the largest manufacturer of "gathiya" snacks. Along with other fast-moving consumer items, the firm makes a range of packaged snacks that are ready to eat, including wafers, snack pellets, and ethnic namkeen. Gujarat serves as the company's stronghold.

"However, some key risks require careful consideration that the Business is subject to seasonality and market is quite Competitive. While It has posted growth in its top and bottom lines.

The IPO valuation of 44.45x P/E appears fairly priced on a current basis. While the company's future growth potential and the positive industry outlook are encouraging thus we recommend Subscribe rating for this IPO," the brokerage said. 

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.