Gopal Snacks IPO: Lacklustre Debut Followed by Sharp Recovery

Explore Gopal Snacks in the FMCG sector with insights on NSE, BSE, and Axis Capital Limited. Learn about its market performance and growth trends.

Introduction: Gopal Snacks, a promising player in the snack industry, experienced a mixed start on the stock market, with its share price opening lower than expected. However, a subsequent recovery reflects the resilience of the company amidst fluctuating market sentiments.

Body: Gopal Snacks, amidst high anticipation, saw its shares debut weakly on the bourses today, opening below the anticipated range. Despite an initial setback, the company demonstrated resilience as market sentiment improved, leading to a notable recovery.

According to experts, the projected share price was estimated to range between ₹370 to ₹392 per share. However, on the National Stock Exchange (NSE), Gopal Snacks opened at ₹351 per share, marking a 12.47% decline from the issue price of ₹401. Similarly, on the Bombay Stock Exchange (BSE), the share price opened at ₹350, down by 12.72%. Despite this, the company’s shares managed to bounce back, showing a 3% increase, and at 13:13 IST, were trading at ₹363 apiece on NSE, up by 3.42%.

 

The IPO subscription status provides insights into investor confidence, with an overall subscription of 9.02 times by the third day. Notably, the Qualified Institutional Buyers (QIB) portion was subscribed 17.50 times, indicating strong institutional interest. Retail investors also showed substantial interest, with the portion being subscribed 4.01 times. Additionally, the Employee portion, reserved at 6.87 times, underscored internal confidence in the company.

The IPO, comprising an offer-for-sale (OFS) of equity shares worth ₹650 crore by promoters and other investors, garnered attention from various stakeholders. Founder Bipinbhai Vithalbhai Hadvani and Gopal Agriproducts Private Ltd were among the major sellers, along with shareholder Harsh Sureshkumar Shah. The involvement of reputable book running lead managers like Axis Capital Limited and JM Financial Limited further added credibility to the offering.

The grey market premium (GMP) for Gopal Snacks IPO reflected investor sentiment, with a current value of -25, indicating a discount compared to the issue price. Despite this, analysts observed a trend towards discount listing, based on previous sessions’ GMP activities.

Conclusion: Despite a lacklustre debut, Gopal Snacks exhibited resilience, with its share price recovering amid positive market sentiment. The company’s IPO subscription status and involvement of reputable financial institutions underscore its potential for growth. However, investors are advised to conduct thorough research or seek professional advice before making investment decisions.

Gopal Snacks IPO: A Debut of Resilience Amid Market Fluctuations

Introduction: Gopal Snacks, a prominent player in the snack industry, recently made its debut on the stock market, showcasing resilience despite facing initial challenges. Let’s delve into the details of its IPO listing and subscription status, shedding light on key insights for potential investors.

Body: Gopal Snacks’ IPO debut witnessed a subdued start, with its share price opening at ₹351 per share on the National Stock Exchange (NSE) and ₹350 apiece on the Bombay Stock Exchange (BSE). This marked a significant discount of 12.47% and 12.72%, respectively, from the issue price of ₹401. While the IPO was anticipated to list between ₹370 to ₹392 per share, market dynamics led to a different outcome.

 

The subscription status of Gopal Snacks’ IPO reflects strong investor interest, with the offering being oversubscribed 9.02 times by the third day. Notably, retail investors showed substantial participation, subscribing 4.01 times, followed by non-institutional investors (NII) at 9.50 times. Additionally, employees demonstrated confidence in the company, with a subscription rate of 6.87 times.

In terms of IPO details, Gopal Snacks allocated shares strategically, reserving 50% for Qualified Institutional Buyers (QIBs), 15% for NII, and 35% for retail investors. The price band was set between ₹381 to ₹401 per equity share, with a lot size of 37 shares and multiples thereafter.

The company’s promoters, including Gopal Agriproducts, Bipinbhai Vithalbhai Hadvani, and Dakshaben Bipinbhai Hadvani, offered an offer-for-sale (OFS) of equity shares worth ₹650 crore, showcasing their confidence in the business’s growth prospects.

Key players involved in the IPO include Axis Capital Limited, JM Financial Limited, and Intensive Fiscal Services Private Limited as book running lead managers, with Link Intime India Private Ltd serving as the registrar, ensuring smooth execution of the offering.

Conclusion: Despite a modest debut, Gopal Snacks’ IPO reflects investor confidence, as evidenced by robust subscription rates and strategic share allocation. The company’s resilience amidst market fluctuations underscores its potential for long-term growth and stability. As investors evaluate opportunities in the snack industry, Gopal Snacks emerges as a compelling option worth considering.

GOPAL SNACKS Stock Update: Significant Decline in Trading Today

Introduction: GOPAL SNACKS, a notable player in the snack industry, experienced a sharp decline in its stock price during today’s trading session. Let’s delve into the details of the stock’s performance, short-term and long-term trends, as well as the implications for investors.

Body: GOPAL SNACKS commenced trading today at ₹350 and closed at ₹401, with fluctuations between a high of ₹384.5 and a low of ₹342. Despite the market cap remaining at 0.0 cr, the BSE volume recorded 216,707 shares. The current trading data reveals GOPAL SNACKS trading at ₹364.6, reflecting a significant decline of -9.08% from the previous day’s closing price of ₹401.

Technical analysis indicates a bullish short-term and long-term trend for GOPAL SNACKS shares. However, the simple moving average for various periods, including 5 days, 10 days, 20 days, 50 days, 100 days, and 300 days, remains at 0.00.

Today’s price range saw GOPAL SNACKS stock hitting a low of ₹342 and a high of ₹384.95, further emphasizing the volatility in the market. The stock’s current price stands at ₹362.7, marking a notable decrease from the previous day’s closing price.

On the NSE, GOPAL SNACKS is trading at ₹371.95, down -7.24% from yesterday’s closing price of ₹401. Investors are advised to closely monitor the stock’s performance to gauge potential opportunities or risks associated with the ongoing trend.

Conclusion: GOPAL SNACKS witnessed a significant decline in its stock price during today’s trading session, with fluctuations between a high and low range. Despite technical analysis indicating a bullish trend, investors should exercise caution and closely monitor the stock’s performance for potential opportunities or risks in the market.

Gopal Snacks Market Debut: Shares List at 13% Discount

Introduction: Gopal Snacks, a renowned FMCG company established in 1999, ventured into the stock market with its IPO on March 14. However, the market debut was subdued, with shares listing at a 13% discount to the offer price of Rs 401. Let’s explore the details of the IPO and the company’s performance, shedding light on its journey into the stock market.

Body: Gopal Snacks, recognized for its diverse range of snacks, including traditional Indian namkeens and contemporary offerings like wafers, initiated its market debut on March 14. However, the listing price of Rs 351 marked a 13% discount compared to the issue price, in line with analysts’ predictions anticipating the influence of a tepid secondary market on the stock.

The Rs 652-crore issue, constituting a pure offer for sale, witnessed a subscription of 9.02 times. Investors exhibited strong interest, subscribing to 10.81 crore equity shares against an offer size of 1.19 crore. Qualified institutional buyers led the subscription, oversubscribing their allotted quota by 17.50 times, followed by non-institutional investors at 9.5 times.

Despite the subdued market debut, Gopal Snacks showcased robust financial performance, with its FY23 revenue reaching Rs 1,394.65 crore, reflecting a commendable CAGR of 11.15% during FY21-FY23. Notably, the company’s net profit registered a remarkable CAGR of 130.65% or Rs 112.4 crore during the same period, primarily driven by strong operational efficiency.

Conclusion: Gopal Snacks’ foray into the stock market witnessed a quiet debut, with shares listing at a 13% discount to the offer price. However, the company’s strong subscription rates and impressive financial performance underscore its potential for growth in the FMCG sector. As investors navigate through market dynamics, Gopal Snacks emerges as an intriguing option, backed by its established presence and promising outlook.

FAQ(s) on Gopal Snacks, FMCG, National Stock Exchange (NSE), Bombay Stock Exchange (BSE), Axis Capital Limited

Q1.Who is the owner of Gopal snacks?

In 1999, Bipinbhai Vitthalbhai Hadvani laid the foundation stone of Gopal Namkeen. What started as a modest venture supplying Namkeen and Snacks to the local market of Rajkot gradually evolved into a well-respected enterprise. The realization of a larger dream came to fruition when the company established its own product line in Rajkot.

Q2.Is Gopal snacks IPO worth buying?

Arihant Capital stated, “At the upper price band, the issue is valued at an EV/EBITDA of 25.9x based on FY23 earnings, which we consider to be expensive. Therefore, we recommend avoiding this issue.”

Q3.What is FMCG and FMCD full form?

FMCG is an acronym for fast-moving consumer goods, while FMCD represents fast-moving consumer durables.

Q4.Is ITC a FMCG company?

ITC is the country’s leading FMCG marketer, the clear market leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its wide-reaching Agri Business, a pre-eminent hotel chain in India that is a trailblazer in ‘Responsible Luxury

Q5.Who is the CEO of NSE India?

On November 12, 2023, at the premises of NSE India, our MD & CEO, Mr. Ashishkumar Chauhan, was accompanied by his wife, Dr. [Last Name], for the event.

Q6.What is the history of NSE?

Established in 1992, it has since developed into a sophisticated, automated electronic platform providing trading services to investors nationwide. By 2021, this exchange system had risen to fourth place globally in terms of trading volume.

Q7.What is meant by BSE?

BSE, originally known as the “Native Share and Stock Brokers’ Association,” was established in 1875 and is now referred to as the Bombay Stock Exchange Limited (BSE Ltd.). It stands as one of the oldest stock exchanges in Asia. BSE is committed to maintaining an efficient market and safeguarding the interests of investors.

Q8.Which is best NSE or BSE?

For investors in India seeking to invest in shares of emerging companies, BSE presents itself as an optimal option. However, for day traders engaging in high-risk share trading involving derivatives, futures, and options, NSE is the preferred choice. Additionally, NSE offers superior software tailored for executing high-risk online transactions.

Q9.Is Axis Bank and Axis Capital same?

Axis Capital is a wholly-owned subsidiary of Axis Bank, one of India’s largest private sector banks.

Q10.Who is the CEO of Axis Capital?

Salil Pitale serves as the MD and CEO of Axis Capital Limited. With a background as a career investment banker, he assumed the leadership position at Axis Capital in 2018.