The initial public offering (IPO) of the Rajkot-based food products maker was subscribed 9.02 times. Non-institutional buyers bid 9.5 times the allotted quota, while qualified institutional buyers bid 17.50 times the reserved portion, and retail investors bought 4.01 times.
Gopal Snacks had a weak debut on the stock exchanges on Thursday, March 14. The stock opened at a discount of 12.4% at ₹351 against the issue price of ₹401 per equity share on the NSE. On the BSE, Gopal Snacks shares listed at ₹350, down 12.7%.
Gopal Snacks IPO subscription
The initial public offering (IPO) of the Rajkot-based food products maker was subscribed 9.02 times. Non-institutional buyers bid 9.5 times the allotted quota, while qualified institutional buyers bid 17.50 times the reserved portion, and retail investors bought 4.01 times.
Gopal Snacks’ IPO, which had a price band of ₹381 to ₹401 per equity share, was entirely an offer for sale (OFS) by promoters and existing investors. The company raised ₹193.9 crore from anchor investors.
About Gopal Snacks Limited
Established in 2009, Gopal Snacks specializes in selling ethnic and western snacks, such as wafers, gathiya, and namkeen, under the renowned ‘Gopal’ brand across ten states and two union territories.
As of September 30, 2023, the company boasts an extensive portfolio of 84 products comprising 276 SKUs (stock-keeping units) across various categories.
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Operating from six manufacturing facilities in Gujarat and Maharashtra, Gopal Snacks commands an impressive annual installed capacity of 404,729 metric tonnes (MT). Additionally, it collaborates with third-party manufacturers for the production of items like nachos, chikki, noodles, soan papdi, and rusk as per demand.
With a robust distribution network comprising 617 distributors, 3 depots, 741 sales and marketing personnel, and 263 logistics vehicles as of Q2 FY24, the company ensures widespread reach and efficient supply chain management.
Over the period from FY21 to FY23, Gopal Snacks witnessed significant growth in revenue from operations, boasting a Compound Annual Growth Rate (CAGR) of over 7%, while its profit surged by an impressive 74%. However, between Q2 FY23 and Q2 FY24, the company experienced a slight decline in revenue at a CAGR of 3%, although its profit increased by 6%.
The company’s IPO prospectus highlights optimistic projections for the Indian savoury snacks market, foreseeing a Compound Annual Growth Rate (CAGR) of nearly 11% between FY23 and FY27, positioning Gopal Snacks to leverage this growth potential effectively.
