Another muted D-Street debut as Gopal Snacks falls prey to negative sentiments. What investors should do
Gopal Snacks, the manufacturer of popular snack items, made another disappointing debut on the exchanges on Thursday.
For context, three out of the last four D-Street debuts have been in the negative and even the positive debut of Bharat Highways was just 3% above the offer price.
The shares of Gopal Snacks listed at Rs 352 per share, which translates to a loss of around 13% compared to its issue price of Rs 401.
Analysts said the negative debut falls short of pre-listing expectations and raises concerns about investor sentiment, valuation, and the company's growth prospects in the competitive snack food market.
«The IPO price might have been perceived as too high considering the company's growth trajectory and the competitive landscape. Broader market conditions and investor cautiousness towards food companies might have dampened enthusiasm. Investors are advised to carefully consider their risk tolerance and long-term investment goals before holding onto their shares,» said Shivani Nyati, Head of Wealth at Swastika Investmart.
Despite mixed signals from analysts, the IPO received a steady response with 9 times the subscription on strong interest from institutional and non-institutional investors.
Since the IPO is an OFS, the company will not receive any proceeds and the entire funds will go to selling shareholders.
Gopal Snacks is a fast-moving consumer goods (FMCG) company in India with a major presence in Gujarat, offering a wide variety of savoury products under its brand ‘Gopal’, including ethnic snacks
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