Gopal Snacks makes a weak debut by listing at Rs 351, a discount of 12.5% to the issue price. The company set the price band of Rs 381 to 401 per equity share. The ethnic snack company raised Rs 650 crore from the investors by offering them an entirely fresh issue of 16.2 million shares.
The company’s stock was seeing a discount of over 6% in the grey market. It is an unofficial market where shares change hands illegally before listing on bourses.
It opened its retail subscription for bidding on March 6 and closed on March 11. A retail bidder had to subscribe for a minimum of 37 shares amounting to Rs 14,837 and in multiples of it thereafter. However, the company set aside around 96,500 shares for employees and offered them at a discounted price of Rs 38 a piece.
Gopal Snacks is a leading ethnic snacks manufacturer in India, it produces Western snacks as well not just in India but also exports to different countries. It is the largest manufacturer of namkeen and gathiya in India.
The company collected Rs 193.95 crore from the anchor investors. As this is entirely an offer for sale the collected money will go to the bank account of shareholders selling their stake.
Intensive Fiscal Services, Axis Capital, and JM Financial were the book-running lead managers for the IPO, and Link Intime India worked as a registrar to the issue.