During the span of three days, the Gopal Snacks IPO garnered an adequate number of subscriptions. On day 3, the subscription rate was 9.02 times, as per BSE data. The retail investors portion was subscribed to 4.01 times, Non Institutional Investors (NII) portion was booked 9.50 times, and the QIB portion was booked 17.50 times on the third day. The employee portion was subscribed to 6.87 times.
Also Read: Gopal Snacks IPO allotment finalised today; latest GMP, 6 steps to check status
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It reserved not more than 50% of the shares in the public issue for qualified institutional buyers, not less than 15% for NII, and not less than 35% of the offer is reserved for retail investors. The employee portion was reserved equity shares aggregating up to ₹3.5 crore. A discount of ₹38 per equity share was being offered to eligible employees bidding in the employee reservation portion.
Also Read: Gopal Snacks IPO last day bidding: GMP, subscription status to review. Apply or not?
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Gopal Snacks IPO opened for subscription on Wednesday, March 6, and closed on Monday, March 11. The price band was fixed in the range of ₹381 to ₹401 per equity share of the face value of Re 1. The lot size was 37 equity shares and in multiples of 37 equity shares thereafter.
In spite of 100% OFS, Gopal attracted a healthy subscription demand from all investor groups, according to Prashanth Tapse, Research Analyst, Senior Vice President of Research at Mehta Equities. This was primarily due to Gopal’s prominence as a major player in the Indian fast-moving consumer goods market, where it offers a wide variety of products, including Namkeen and western snacks.
In light of the subdued secondary market environment and the ongoing selling pressure observed in the Mid- and Small-cap areas, Tapse highlighted that Gopal may be the victim and that the listing might be muted to flat. Since the offer was a 100% offer for sale and no money would be entering the firm for expansion, the soft listing appears to be justified.
Also Read: Gopal Snacks IPO: GMP, subscription status, review to allotment date. Apply or not?
However, let’s check what does Gopal Snacks IPO GMP today signal ahead of listing.
Gopal Snacks IPO GMP or grey market premium is -12. This indicates Gopal Snacks share price was trading at a discount of ₹12 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Gopal Snacks share price is indicated at ₹389 apiece, which is -2.99% lower than the IPO price of ₹401.
Based on last 15 sessions’ grey market activities, today’s IPO GMP shows trend to discount and expects a discount listing. The lowest GMP is ₹-12, while the highest GMP is ₹122, as per investorgain.com analysts.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Also Read: Gopal Snacks IPO: Price band, finances- here are 8 key things to know from RHP
Gopal Snacks IPO details
Gopal Snacks IPO comprises an offer-for-sale (OFS) of equity shares worth ₹650 crore by the promoters and other investors.
In addition to Gopal Agriproducts Private Ltd (selling shares worth ₹520 crore) and promoter Bipinbhai Vithalbhai Hadvani (selling shares worth ₹80 crore), there will be another selling stakeholder, Harsh Sureshkumar Shah (selling shares worth ₹50 crore).
The Gopal Namkeen IPO’s book running lead managers are Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited, and the registrar is Link Intime India Private Ltd.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 13 Mar 2024, 12:06 PM IST