Gopal Snacks share price: Despite strong subscription, shares list on NSE at 12.4% discount

Shares of Gopal Snacks made a weak debut on the stock exchanges on Thursday, March 14. The stock opened at a discount of 12.4% at ₹351 against the issue price of ₹401 per equity share on the NSE. On the BSE, Gopal Snacks shares listed at ₹350, down 12.7%.

The ₹650 crore initial public offering (IPO) of the Rajkot-based food products maker was subscribed 9.02 times. The non-institutional buyers bid 9.5 times the quota allotted, and qualified institutional buyers 17.50 times the reserved portion, while retail investors bought 4.01 times.

About Gopal Snacks Limited

Gopal Snacks, incorporated in 2009, sells ethnic and western snacks, including wafers, gathiya, and namkeen, under the 'Gopal' brand in ten states and two union territories.

As of September 30, 2023, the company has 84 products with 276 SKUs (stock-keeping units) across various categories.

With six manufacturing facilities in Gujarat and Maharashtra, Gopal Snacks has an annual installed capacity of 404,729 metric tonnes (MT).

The company also partners with third-party manufacturers to produce nachos, chikki, noodles, soan papdi and rusk as needed.

The company has 617 distributors, 3 depots, 741 sales and marketing employees, and 263 logistics vehicles as of Q2 FY24.

Between FY21 and FY23, the FMCG (fast-moving consumer goods) company's revenue from operations increased at a CAGR of more than 7%, and its profit grew by 74%. Between Q2 FY23 and Q2 FY24, the company's revenue decreased at a CAGR of 3%, while its profit increased 6%.

According to the company's IPO prospectus, the Indian market for savoury snacks is projected to grow at a CAGR of nearly 11% between FY23 and FY27, which could benefit the firm.