Gopal Snacks IPO on Day 2, Surging Interest Across Categories, Culminates in Strong 1.39x Overall Subscription

Day 2 of Gopal Snacks IPO saw varied interest: QIBs at 0.09x, Non-Institutional Investors at 1.62x, RIIs at 2.00x, and Employees at 3.21x, totaling a 1.39x subscription.
Gopal Snacks IPO Subscription Status

The Gopal Snacks Limited IPO witnessed a diverse level of subscription across different categories by the end of Day 2. Qualified Institutional Buyers (QIBs) showed modest interest, subscribing only 0.09 times their allotted portion. In contrast, Non-Institutional Investors displayed a significantly higher level of enthusiasm, subscribing 1.62 times their quota. Retail Individual Investors (RIIs) demonstrated even stronger interest, with their category oversubscribed by 2.00 times. The most remarkable interest came from the Employees’ segment, which was subscribed 3.21 times.

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Gopal Snacks Limited  – Fundamental Analysis

Gopal Snacks Ltd’s IPO analysis reveals consistent revenue growth, doubling equity, and significant profit rises, indicating a strong contender in the food and beverage sector. Noteworthy figures include a revenue surge from ₹11,288.61 million to ₹13,946.53 million from FY2021 to FY2023, alongside a remarkable profit increase to ₹1,123.69 million in FY2023. The RoNW peaked at 38.63%, reflecting operational efficiency, while reduced liabilities improved financial stability. Despite a lower inventory turnover ratio, the company showcases improved liquidity and reduced leverage, promising a robust investment opportunity.

Gopal Snacks Limited  – Risks And Challenges

Gopal Snacks Limited’s IPO confronts risks primarily stemming from its heavy reliance on sales from gathiya and namkeen, constituting 59% of its revenue, posing vulnerability to shifts in consumer preferences. Challenges include potential contamination risks due to storage issues and labeling errors, alongside pending notices from regulatory departments, which could adversely affect the company’s financial and operational standing upon unfavourable judgments.

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