Gopal Namkeen Limited’s Initial Public Offering (IPO) has been open for subscription since March 6, 2024, and is set to close on March 11, 2024. Investors have just one day left to participate in the public issue.
The price band for the Gopal Snacks IPO is fixed at ₹381 to ₹401 per equity share, and the anticipated listing date is March 14, 2024. The subscription status reveals that the book build issue was oversubscribed 1.40 times in the first two days of bidding.
The Grey Market Premium (GMP) for Gopal Snacks IPO currently stands at ₹25, indicating positive sentiment among stock market observers. Although the GMP dropped from ₹45 on Thursday, experts foresee potential improvement, especially considering the positive trend in the secondary market as the 50-stock index moves towards 22,750 levels.
As of 12:06 PM during the bidding period, the overall subscription for Gopal Snacks IPO reached 2.29 times. The retail portion was oversubscribed 2.92 times, the Non-Institutional Investor (NII) segment saw an oversubscription of 3.25 times, while the Qualified Institutional Buyer (QIB) segment was subscribed 0.40 times.
In terms of valuation, Rajan Shinde, a Research Analyst at Mehta Equities, recommends a ‘subscribe’ rating for Gopal Snacks IPO. Shinde notes that at the upper price band of ₹401, the company’s market cap stands at ₹4,997 crore, with a price-to-earnings (P/E) ratio of 45x based on annualized FY 2024 earnings.
Despite concerns about the entire offer for sale (OFS) structure, Shinde emphasizes Gopal Snacks’ strong brand recognition and advanced manufacturing capabilities, making it well-positioned to capitalize on the growing demand for savory snacks in the organized market.
Choice Broking also suggests a ‘subscribe with caution’ rating, acknowledging that the IPO is fully priced at an EV/TTM sales multiple of 3.7 times, which aligns with the peer average of 3.9 times. The cautionary stance reflects the perceived full pricing of the issue.
