On March 6, the first day of bidding, Gopal Snacks, based in Rajkot, received a 56% subscription for its initial public offering (IPO). Investors purchased 66.96 lakh equity shares out of the total IPO size of 1.19 crore shares.
Retail investors subscribed to 0.89 times the allotted quota, while employees subscribed to 1.64 times their portion. High net worth individuals subscribed to 0.49 times the reserved portion, and qualified institutional buyers purchased 0.18 percent of their reserved quota. This data indicates a positive response to the issue, despite it being an entirely offer-for-sale (OFS) issue.
The company aims to raise Rs 650 crore through its maiden public issue. Promoters Bipinbhai Vithalbhai Hadvani and Gopal Agriproducts, along with non-promoter Harsh Sureshkumar Shah, are the selling shareholders in the OFS. The price band for the Gopal Snacks IPO, which closes on March 11, is set at Rs 381-401 per share.
Gopal Snacks, known for its savoury products under the brand Gopal, has shown impressive growth. Its revenue from operations grew at a CAGR of 11.15% during FY21-FY23, while its EBITDA and profit increased at a CAGR of 80.31% and 130.65% respectively during the same period.
In the grey market, Gopal Snacks IPO shares were trading at around a 17% premium over the upper price band, according to market observers. The grey market serves as an unofficial platform for trading in IPO shares until listing.
