Gopal Snacks, a renowned producer of ethnic and western snack products, faced a lackluster debut on the stock market, succumbing to the recent turbulence in equity markets. Amidst a backdrop of market volatility, the company’s shares closed down by 10% on their debut day, reflecting investor apprehensions and subdued market sentiment.
The lackluster performance of Gopal Snacks on its listing day adds to a series of recent weak listings, echoing the challenges faced by companies navigating uncertain market conditions. JG Chemicals, for instance, experienced a sharp decline of 16.4% on its listing day, albeit rebounding marginally in subsequent sessions.
Analysts attribute Gopal Snacks’ weak listing to several factors, including the broader market turmoil and subdued investor sentiment. The company’s complete offer-for-sale issue, coupled with lower-than-anticipated IPO subscription numbers compared to other public offerings, may have further contributed to the downward pressure on its stock price.
Gopal Snacks commenced trading on the National Stock Exchange (NSE) with a 12.5% loss, opening at Rs 351 against the issue price of Rs 401. Throughout the trading session, the stock remained below its issue price, registering an intraday low of Rs 341.8 and a high of Rs 384.8. Ultimately, the shares closed at Rs 362.7, down 9.55%, with substantial trading volume of 84.63 lakh equity shares and a market capitalization of Rs 4,519 crore.
Similarly, on the Bombay Stock Exchange (BSE), Gopal Snacks shares experienced a decline of 10.21%, closing at Rs 360.05 with a trading volume of 5.47 lakh equity shares.
Despite the subdued market debut, Gopal Snacks had garnered significant attention during its initial public offering (IPO) phase. The Rajkot-based company, known for its diverse range of snack products including namkeen, gathiya, wafers, extruded snacks, and snack pellets, successfully raised Rs 650 crore through its IPO. The public issue, which comprised only offer-for-sale by existing shareholders, witnessed a subscription of 9.02 times during the bidding period from March 6 to March 11.
The price band for the IPO was set at Rs 381-401 per share, reflecting the company’s valuation and market expectations.
As Gopal Snacks navigates the initial phases of its public listing, market observers closely monitor its performance amidst broader market dynamics and evolving investor sentiment.
