Gopal Snacks IPO sets price band at ₹381-401 per share; To open on March 6

1 Mar 2024 , 10:35 AM

Rajkot-based Gopal Snacks Ltd, a leading savory snacks manufacturer, is poised to make a flavorful entry into the Indian stock market with its much-anticipated initial public offering (IPO). With the subscription set to commence on March 6, Gopal Snacks Ltd has set the price band for its IPO at ₹381-401 per share, with the subscription opening on March 6 and closing on March 11. 

The IPO, valued at ₹650 Crore, will be a pure offer-for-sale (OFS). Promoters Gopal Agriproducts and Bipinbhai Vithalbhai Hadvani will be selling equity shares worth ₹520 Crore and ₹80 Crore respectively, while Harsh Sureshkumar Shah will sell shares worth ₹50 Crore.

Key Dates:

• Anchor book opens on March 5
• Subscription opens on March 6 and closes on March 11
• Allotment on March 12
• Shares credited to demat accounts on March 12
• Listing on exchanges on March 14

Offer Structure: The IPO offers a balanced allocation to different investor categories, with QIBs, retail investors, and NII (HNI) investors receiving shares as per the stipulated%age of the net issue. Promoters hold a significant stake of 93.5% in the company, while the remaining 6.5% is owned by public shareholders, including Axis Growth Avenues AIF – I and Ashoka India Equity Investment Trust Plc.

Business Overview: Established in 1999, Gopal Snacks Ltd has emerged as a prominent player in the fast-moving consumer goods (FMCG) sector, offering a diverse range of ethnic and Western snacks across 10 states and two Union Territories. The company's product portfolio includes traditional namkeens, gathiya, wafers, extruded snacks, snack pellets, papad, spices, gram flour (besan), noodles, rusk, and soan papdi, catering to the varied tastes of consumers.

Financial Performance: Gopal Snacks Ltd has showcased robust financial performance, with revenue reaching ₹1,394.65 Crore in FY23, reflecting a commendable CAGR of 11.15% during FY21-FY23. The company's net profit witnessed an impressive CAGR of 130.65% during the same period, reaching ₹112.4 Crore in FY23. Additionally, the EBITDA grew at an average rate of 80.31%, reaching ₹196.23 Crore in FY23, underlining the company's strong operating performance.

Merchant Bankers: Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited are the book running lead managers for the Gopal Snacks Ltd IPO, ensuring effective management of the offering process. Link Intime India Private Ltd has been appointed as the registrar for the issue.