The initial public offering (IPO) of Gopal Snacks witnessed interest from retail and HNI investors during the second day of the bidding process. The three-day bidding process is going to end on March 11, 2024. The bidding of the issue started yesterday (March 6) and the first day ended with a subscription of 56 per cent. 

The company is planning to raise around Rs 650 crore with this IPO. 

The listing of the IPO is expected on BSE and NSE on Thursday, March 14, 2024. 

Gopal Snacks IPO in 5 Points

Here are five important key points to know Gopal Snacks IPO

1. Company Profile: Gopal Snacks is an FMCG company in India. The majority of its sales come from Gujarat. The company was founded in 1999 and sells ethnic and western snacks, which include namkeen, gathiya, wafers, etc. They comprise 84 products and 276 SKUs. 

2. Price Band of IPO: The price band of Gopal Snacks IPO is fixed between Rs 381 to Rs 401 per share of the face value of Re 1. The minimum lot size is 37 equity shares and in multiples thereafter. 

3. Company’s Financials: Gopal Snacks has seen constant growth year on year in its financials. Their revenue from operations for FY23, FY22, and FY21 stood at Rs. 1394.65 crore, Rs. 1352.16 crore, and Rs. 1128.86 crore respectively. 

In the first six months of the current financial year, the company made a profit after tax (PAT) of Rs 55.57 crore, which belongs to owners of the company. The profit has been consistently increasing over the past three years. In the financial years 2021, 2022, and 2023, the company’s profits after tax were Rs 21.12 crore, Rs 41.54 crore, and Rs 112.37 crore respectively.

Also Read: How to know a New Fund Offer (NFO) is good for you or not

4. Reservation: For the IPO, a maximum of 50 percent of the shares are allocated for Qualified Institutional Buyers (QIBs), a minimum of 35 percent for retail investors, and at least 15 percent for Non-Institutional Investors (NIIs).

Data shows investors made bids for over 1.21 crore equity shares or 1.01 times, against around 1.19 crore equity shares offered for subscription by 1.30 pm on Thursday. Further, the allocation for retail investors was subscribed 1.55 times.  

5. Major Risk: The major risk associated with this company is that its majority of sales comes from Gujarat only, which can lead to doubt in business scale and any significant development can hamper their operations, financial condition, and cash flows. Secondly, their inability to adapt according to preferences and tastes of the consumer can make their demand for products go down.

Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before investing in market-linked instruments.