Gopal Snacks makes a quiet market debut, lists at 13% discount to offer price

Qualified institutional buyers took the lead in supporting the public issue, picking 17.50 times the allotted quota, followed by non-institutional investors

Shares of Gopal Snacks made a weak market debut on March 14, listing at Rs 351, a 13 percent discount over the issue price of Rs 401. The listing was in line with analyst estimates who expected a subdued secondary market to weigh on the stock.

The Rs 652-crore issue, a pure offer for sale, was subscribed 9.02 times, as investors picked 10.81 crore equity shares against an offer size of 1.19 crore. Qualified institutional buyers were at the forefront, picking 17.50 times their allotted quota followed by non-institutional investors who bought 9.5 times the portion set aside for them.

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Founded in 1999, Gopal Snacks is an FMCG company known for its wide range of snacks, including traditional Indian namkeen and western offers such as wafers.

In FY23, the company's revenue stood at Rs 1,394.65 crore, marking a CAGR of 11.15 percent during FY21-FY23. The company's net profit CAGR was 130.65 percent or Rs 112.4 crore during the same period largely aided by a strong operating performance.

The company shall not receive any proceeds from the offer and all proceeds will be received by the selling shareholders as the issue is a pure offer-for-sale.

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