Gopal Snacks Limited's Initial Public Offering (IPO) experienced strong demand, with the subscription reaching 1.39 times the offered equity shares on the second day of bidding. The IPO, which opened on March 6, 2024, and closed on March 11, 2024, received bids for 1,67,15,971 shares against the offered 1,19,79,993 equity shares, within a price band of Rs 381 to Rs 401.
Category-wise subscription
Employee Portion: The employee portion was subscribed 3.22 times.
Retail Portion: Retail investors subscribed 2.01 times, with a positive response from individual investors.
Non-Institutional Investors Portion: Non-Institutional Investors also showed substantial interest, subscribing 1.63 times.
Qualified Institutional Buyer Portion: However, the Qualified Institutional Buyer portion saw a modest subscription of 0.09 times.
Anchor Investors
A day before the IPO opened, Gopal Snacks Ltd successfully raised Rs 193.94 crores from anchor investors, a mix of foreign and domestic institutions. Notable participants included Ashoka White Oak, White Oak MF, DSP MF, and other prestigious names such as Natixis, BNP Paribas, and HDFC Life Insurance.
Brokerage firms bullish on Gopal Snacks
Leading brokerage firms, including Anand Rathi, Choice Broking, and Reliance Securities, gave a "Subscribe" rating to Gopal Snacks Ltd. They cited the company's diversified product portfolio, strategically located manufacturing facilities, and a robust distribution network as key factors contributing to the positive outlook. GSL's position as the largest ethnic manufacturer in Gujarat added to its attractiveness.
Future expansion plans and risks
Gopal Snacks Ltd outlined plans for the future, aiming to expand its presence in focus markets, enhance brand awareness, and optimize operations using unutilized capacity and technology. However, brokers cautioned investors about the company's dependence on core products and the Gujarat market, identifying these as key risks.
Book running lead managers and registrar
Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited served as the Book Running Lead Managers to the Offer, ensuring the smooth execution of the IPO process. Link Intime India Private Limited was appointed as the Registrar to the Offer.
Listing plans
The Equity Shares of Gopal Snacks Limited were proposed to be listed on both BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
