Gopal Snacks IPO booked 56% on debut day, retail portion 89%

Rajkot-based Gopal Snacks has garnered 56 percent subscription for its initial public offering on March 6, the first day of bidding, as investors bought 66.96 lakh equity shares against the IPO size of 1.19 crore shares.

Retail investors picked 0.89 times the allotted quota and employees 1.64 times the portion set aside for them, while high networth individuals bought 0.49 times the reserved portion and qualified institutional buyers purchased 0.18 percent shares of their reserved quota, as per the subscription data published by exchanges.

The above subscription data indicated the response so far has been good for the issue despite it being an entirely offer-for-sale (OFS) issue.

The ethnic and western snacks maker is planning to mobilise Rs 650 crore through its maiden public issue. Promoters Bipinbhai Vithalbhai Hadvani and Gopal Agriproducts as well as non-promoter Harsh Sureshkumar Shah are the selling shareholders in the OFS.

Also read: Gopal Snacks IPO draws brokerage attention with growth prospects: Should you buy into Rs 650-cr issue?

The price band for the Gopal Snacks IPO, which will be closing on March 11, has been fixed at Rs 381-401 per share.

Gopal Snacks, which offers savoury products under its brand Gopal, clocked growth at a CAGR of 11.15 percent in revenue from operations during FY21-FY23. Its EBITDA grew at a CAGR of 80.31 percent and profit increased at a CAGR of 130.65 percent during the same period.

In the grey market, the Gopal Snacks IPO shares were available at around 17 percent premium over the upper price band, the market observers said. It is an unofficial platform for trading in IPO shares till the listing.