Gopal Snacks IPO to hit Dalal Street on March 6, to mobilise Rs 650 crore

Gopal Snacks IPO to announce price band on March 1

Rajkot-based savory snacks maker Gopal Snacks is set to hit Dalal Street with its Rs 650-crore initial public offering on March 6. The price band for the issue will be announced tomorrow, i.e. March 1.

The IPO, which consists of only an offer-for-sale (OFS) by the existing shareholders with no fresh issue component, will close on March 11. The anchor book of the issue will be opened for a day on March 5.

Promoters Gopal Agriproducts and Bipinbhai Vithalbhai Hadvani will be selling equity shares worth Rs 520 crore and Rs 80 crore in the OFS, while the remaining shares worth Rs 50 crore will be sold by other shareholders Harsh Sureshkumar Shah.

The fast-moving consumer goods company that offers ethnic snacks, western snacks and other products in ten States and two Union Territories has reserved half of the net issue size for qualified institutional investors, 15 percent for non-institutional investors and the remaining 35 percent for retail investors.

Also read: GPT Healthcare lists at 16% premium to IPO price: Should you buy more, hold, or sell?

Gopal Snacks has also reserved Rs 3.5 crore worth of shares for its employees. The issue less the employee reservation portion is considered as the net offer.

Promoters hold 93.5 percent shares in the company, and the balance 6.5 percent stake is owned by public shareholders including Axis Growth Avenues AIF – I, and Ashoka India Equity Investment Trust Plc with 1.48 percent stake each.

The Gujarat-based company offers several savory products under its brand Gopal has recorded revenue at Rs 1,394.65 crore for FY23, growing at a CAGR of 11.15 percent during FY21-FY23. Net profit grew at a CAGR of 130.65 percent during the same period at Rs 112.4 crore in FY23, driven by strong operating performance, and EBITDA (earnings before interest, tax, depreciation and amortisation) increased at a CAGR of 80.31 percent to Rs 196.23 crore in FY23.

Also read: JG Chemicals sets Rs 210-221 price band for Rs 251-crore IPO

Net profit in the six months ended September FY24 grew nearly 7 percent year-on-year to Rs 55.6 crore on strong operating numbers, though revenue from operations fell 3.3 percent to Rs 676.2 crore for the same period.

As per the F&S report, the Indian market for savoury snacks is estimated to be valued at Rs 79,600 crore in FY23 and is projected to grow at a CAGR of approximately 11 percent reaching Rs 1,21,700 crore by FY27.

Intensive Fiscal Services, Axis Capital, and JM Financial will act as merchant bankers for the issue.