The maiden public issue of Gopal Snacks was subscribed 1.4 times on March 7, the second day of bidding, as investors bought 1.67 crore equity shares against the IPO size of 1.19 crore equity shares.
Investors have provided good support to the issue so far, despite the issue being an offer-for-sale with no fresh issue component. Retail investors and non-institutional investors were in the leading position, picking 2.01 times and 1.63 times the portions set aside for them.
Qualified institutional buyers bought 0.09 times the reserved portion, while employees bid 3.22 times the allotted quota.
The Rajkot-based ethnic and western snacks maker has reserved Rs 3.5 crore worth of shares for its employees and employees will get those shares at a discount of Rs 38 per share to the final issue price.
The price band for the issue, which closes on March 11, has been fixed at Rs 381-401 per share.
Also read: JG Chemicals IPO closes with 27.8 times subscription, retail portion booked 17.3x
Gopal Snacks which makes a variety of snack products like namkeen, gathiya, wafers, snack pellets and soan papdi, targets to raise Rs 650 crore through its IPO. Promoters Bipinbhai Vithalbhai Hadvani and Gopal Agriproducts, and non-promoter Harsh Sureshkumar Shah are the selling shareholders in the OFS.
The company, which competes with Bikaji Foods International and Prataap Snacks, has recorded healthy financial performance in the past years. Revenue from operations grew at a CAGR (compounded annual growth rate) of 11.15 percent during FY21-FY23 to Rs 1,394.65 crore and profit increased at a CAGR of 130.65 percent during the same period to Rs 112.4 crore in FY23 backed by healthy operating numbers.
Also read: Mukka Proteins lists with 43% premium: Should you buy, sell, or hold the stock?
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