Gopal Snacks, also known as Gopal Namkeen, has launched an initial public offer to raise Rs 650 crore. The savoury snack maker's offer is purely an offer for sale of 1.62 crore shares and its anchor book will open on March 5.
Here are all the key details you need to know
1.) IPO Dates
The IPO will open for subscription on March 6, 2024 and close on March 11, 2024.
2.) Price Band
The price band for the issue has been fixed at Rs 381-Rs 401 per share.
3.) Offer Details
To garner Rs 650 crore from the issue, promoters Gopal Agriproducts and Bipinbhai Vithalbhai Hadvani will be selling equity shares of Rs 520 crore and Rs 80 crore in the OFS, while the rest of Rs 50 crore will be sold by Harsh Sureshkumar Shah.
Promoters hold 93.5 percent shares in the company, and the rest 6.5 percent stake is owned by public shareholders, including Axis Growth Avenues AIF – I, and Ashoka India Equity Investment Trust Plc with a 1.48 percent stake each.
4.) Objectives of the Issue
Due to the nature of the issue, the company will not receive any proceeds from the offer and all proceeds will be received by the selling shareholders.
5.) Lot Size
Investors can bid for a minimum of 37 equity shares and in multiples thereof. Hence, the minimum investment by retail investors would be Rs 14,097 (37 (lot size) x Rs 381 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,837.
6.) Company Profile
Founded in 1999, Gopal Snacks is an FMCG company that deals in ethnic and western snacks, and other products in India and internationally. It produces snacks like namkeen and gathiya, as well as Western snacks such as wafers, extruded snacks, and snack pellets. They also provide fast-moving consumer goods such as papads, spices, gram flour, noodles and rusk.
7.) Financials of the Company
The company recorded a revenue of Rs 1,394.65 crore for FY23, marking a CAGR of 11.15 percent during FY21-FY23. The company's net profit CAGR is 130.65 percent or Rs 112.4 crore during the same period largely aided by a strong operating performance.
Net profit in the six months ended September 2023 grew nearly 7 percent year-on-year to Rs 55.6 crore while Gopal's revenue from operations declined 3.3 percent to Rs 676.2 crore for the same period.
8.) Lead Managers
Intensive Fiscal Services Private Limited, Axis Capital Limited and Jm Financial Limited are the book-running lead managers of the Gopal Namkeen IPO, while Link Intime India Private Ltd is the registrar for the issue.
9.) Key Risks
i.) Nearly 90 percent of the company's revenue from operations comes from snacks, gathiya, and pellets. An inability to anticipate and adapt to evolving consumer tastes, preferences and demand for particular products could adversely impact the demand and business of the company.
ii.) Gujarat, as a region, constitutes almost 80 percent of its sales. Any developments affecting our operations in the state could harm Gopal's business, financial condition, results of operations and cash flows.
iii.) The company has received eight notices under the relevant provisions of the Food Safety and Standards Act, 2006, declaring products to be allegedly substandard, adulterated and misleading advertisements.
iv.) The company's manufacturing facilities are concentrated in the state of Gujarat. Any significant social, political, economic or seasonal disruption, natural calamities or civil disruptions in Gujarat could harm the business.
10.) Listing Date
Gopal Namkeen IPO will likely list on BSE and NSE with a tentative listing date fixed as Thursday, March 14, 2024.
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