Gopal Snacks shares: Is the stock worth buying after D-St’s sluggish start?

Gopal Snacks shares

Gopal Snacks shares

Gopal Snacks shares: Shares of Gopal Snacks were listed at Rs 350, a 12.72 per cent discount on the BSE, and Rs 351, a 12.47 per cent discount, on the NSE against the issue price of Rs 401 per share.

Gopal Snacks shares

Shares of Gopal Snacks Ltd were marginally lower on Dalal Street on Thursday, but buying in the company was limited after a muted debut. Shares of Gopal Snacks were trading at Rs 350 at a discount of 12.72 per cent on the BSE and Rs 351 at a discount of 12.47 per cent on the NSE from the issue price of Rs 401.

Post-IPO earnings were muted after recent IPOs rattled broader market sentiment and failed. Gopal Snacks share price is Rs. 342 at the lowest price. The total reduction was almost 15 percent compared to the original price. However, it touched a high of Rs 384.95, which was 12.55 percent back from the day’s low.

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After the soft IPO, investors are uncertain whether to enter the stock at the current level below the issue price, or the stock may fall further due to volatile market sentiment. In addition, due to the prevailing mood in the primary markets, those involved are trying to protect their capital.

Investor sentiment

Gopal Snacks shares: Gopal Namkeen had a disappointing stock market debut with his company at Rs 352 per share. Shivani Niyati, Head of Wealth at Swastika Investmart, said the negative listing results were below pre-listing expectations and raised concerns about investor sentiment, valuation and the company’s growth prospects in the competitive snack food market.

She said: “Given the company’s growth path and the competitive environment, the IPO price may have been considered too high. Decreasing market conditions and investor reluctance towards food companies may have dampened enthusiasm.” Investors are advised to carefully consider their risk tolerance and long-term investment objectives before maintaining the status quo.

Stock at a fixed price

Gopal Snacks shares: The IPO of Gopal Snacks took place from March 6 to 11. The company offered the stock at a fixed price of Rs 381-401 per share in a volume of 37 shares. The company raised a total of Rs 650 crore through the initial sale, which was only an offer for sale (OFS) of up to 16,209,476 shares by promoters and other shareholders.

This number has been recorded more than nine times in total. Allocation to Qualified Institutional Bidders (QIBs) was fixed at 17.50 times. The distribution to non-institutional investors was 9.50 times oversubscribed. The area reserved for residential investors and employees was offered 4.01 times and 6.88 times, respectively.

Gopal Snacks also took a hit in the secondary market, with selling pressure from mid- and small-caps continuing and the share price remaining weak. According to Prashant Tapse, vice president of research at Mehta Equities, the soft IPO was justified as the offer was 100 percent and did not include funds needed to grow the company.

Build long-term growth

Gopal Snacks shares: “We believe this listing offers investors an opportunity to build a long-term growth story. Since all indicators indicate that cautious investors have “caught up”, investors who are missing out and want to add something can stock up on a gopal morsel for every downturn: “Publish a list with only a long-term perspective.” he said.

Incorporated in 1999, Gopal Snacks is an FMCG company specializing in ethnic and western snacks for the Indian and global markets. Our product range includes many options, from traditional offerings such as Namkeen and gathiya to modern products such as wafers, extruded snacks and snack pellets.

Disclaimer: Content shared on or through our digital media channels are for information and education purposes only and should not be treated as investment or trading advice. Please do your own analysis or take independent professional financial advice before making any investments based on your own personal circumstances

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