Gopal Snacks Shares End At 10.21% Discount To IPO Price
The Rs 650-crore IPO was subscribed 9.02 times on its third and final day.
Shares of Gopal Snacks Ltd. were listed on the BSE on Thursday at Rs 350 apiece, a discount of 12.72% to its IPO price of Rs 401 apiece.
On the NSE, the stock debuted at Rs 351, a 12.47% discount to its IPO price.
The shares ended at a discount of 10.21% to the IPO price, though they advanced 2.87% from its listing price to end at Rs 360.05 apiece on BSE.
The Rs 650 crore initial public offering was subscribed to 9.02 times on its third and final day. Bids were led by institutional investors (17.5 times), followed by non-institutional investors (9.5 times), a portion reserved for employees (6.88 times) and retail investors (4.01 times).
Currently, 75% of the revenue originates from Gujarat, with efforts underway to expand its presence beyond the state. The company has established a presence in numerous other states as well, according to Chief Financial Officer Mukesh Shah. "We are committed to surpassing industry performance through our concerted efforts."
As much as 60% of revenue is derived from ethnic snacks and this proportion is expected to remain consistent in the coming years, Chief Executive Officer Raj Hadvani said.
Use Of Proceeds
The company will not benefit directly from the proceeds of the offer as all funds raised will go to the selling shareholders in proportion to the shares they offer to sell. The company's management told NDTV Profit that they plan to use the proceeds to repay debt it raised to buy out the stake of their family member in the company.
Business
Established in 1999 in Rajkot, Gujarat, Gopal Snacks is a maker of ethnic and western snacks, including gathiya, along with wafers, extruded snacks and snack pellets. They also offer a selection of fast-moving consumer goods, including spices, gram flour, noodles and rusk.
The company has an array of 276 stockkeeping units and 84 products across different categories, catering to a wide spectrum of tastes and preferences.
As of November, the company's reach spans 10 states and two Union territories, backed by a robust distribution network.