Gopal Snacks shares: Another disappointing D-St debut; stock lists at 13% discount

Shares of Gopal Snacks Ltd made a disappointing debut at Dalal Street on Thursday as the stock was listed at Rs 350, a discount of 12.72 per cent, over its issue price of Rs 401 apiece on the BSE. Similarly, the stock kicked-off its maiden trading session at NSE with a discount of 12.47 per cent at Rs 351 over the same issue price.

The listing has been on the less-than-expected note. Ahead of its listing, shares of Gopal Snacks were exchanging hands at a discount of Rs 20-25 in the grey market, suggesting a listing at 5-6 per cent discount for the investors. However, the grey market premium stood at Rs 45-65 when the issue was announced and open for bidding.

The primary stake sale of Gopal Snacks was open for subscription between March 6-11. The company had offered its shares in the price band of Rs 381-401 per share with a lot size of 37 shares. The company raised a total of Rs 650 crore from its primary offering, which was entirely an offer-for-sale (OFS) of up to 1,62,09,476 equity shares by its promoters and other shareholders.

The issue was overall subscribed a little more than nine times. The quota for qualified institutional bidders (QIBs) was booked 17.50 times. The quota for non-institutional investors was subscribed 9.50 times. The portions reserved for retail investors and employees saw bidding for 4.01 times and 6.88 times, respectively.

Incorporated in 1999, Gopal Snacks is an FMCG firm specializing in both ethnic and Western snack items, catering to markets in India and worldwide. Their product range encompasses a diverse selection, featuring traditional offerings like namkeen and gathiya alongside contemporary options such as wafers, extruded snacks, and snack pellets.

Intensive Fiscal Services, Axis Capital and JM Financial were the book running lead managers of the Gopal Snacks IPO, while Link Intime India enacted as the the registrar to the issue.