Gopal Snacks IPO Subscribed 1.4 Times On Day 2
The company will not benefit directly from the proceeds of the offer as all the funds raised will go to the selling shareholders.
Gopal Snacks Ltd.'s initial public offering has been subscribed 1.4 times till the second day on Thursday.
It launched its IPO on Wednesday to raise up to Rs 650 crore. The issue received a tepid response, getting bids worth only 56% of the offer on day 1.
The promoters plan to sell 1.62 crore shares in the pure-play offer for sale in a price band of Rs 381–401 per share.
Allotment is expected by March 12, while the tentative listing date for the maker of savouries is March 14.
The IPO's minimum lot size is 37 shares, requiring a minimum retail investment of Rs 14,837. Qualified institutional investors need a minimum investment of approximately Rs 2.08 lakh (14 lots), while non-institutional investors need to bid for at least shares worth approximately Rs 10.09 lakh (68 lots).
It had garnered Rs 194 crore from anchor investors a day ahead of the start of its initial share sale.
Issue Details
Issue opens: March 6
Issue closes: March 11
Face value: Re 1 per share.
Price band: Rs 381–401 per share.
Lot size: 37 shares.
Fresh issue size: Rs 650 crore.
Total issue size: Rs 650 crore.
Issue type: Book-built issue IPO
Listing: BSE and NSE.
Use Of Proceeds
The company will not benefit directly from the proceeds of the offer as all the 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 the 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.
Subscription Status: Day 2
The IPO has been subscribed 1.4 times as of 5 p.m. on Thursday.
Institutional investors: 0.09 times or 9%
Non-institutional investors: 1.63 times
Retail investors: 2.01 times.
Employee reserved: 3.22 times.
