Gopal Snacks Files Rs 650 Crore IPO Proposal with SEBI, Offering Exclusive OFS

23 Nov 2023 , 08:02 AM

Gopal Snacks, a Gujarat-based FMCG company, has submitted draft papers to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) aiming to raise Rs 650 crore, as of November 21. The IPO is exclusively an offer-for-sale (OFS) of Rs 650 crore worth of shares by existing shareholders, including promoters, and does not include a fresh issue component.

Selling shareholders in the OFS include promoters Bipinbhai Vithalbhai Hadvani and Gopal Agriproducts, along with investor Harsh Sureshkumar Shah.

Promoters Bipinbhai Vithalbhai Hadvani, Dakshaben Bipinbhai Hadvani, Gopal Agriproducts, and Raj Bipinbhai Hadvani collectively hold 93.5 percent of the company, while the remaining 6.5 percent is held by public shareholders, including Harsh Sureshkumar Shah, Axis Growth Avenues AIF – I, and Ashoka India Equity Investment Trust PLC.

Financially, the ethnic savoury products company achieved an impressive 170.5 percent year-on-year growth in profit, reaching Rs 112.4 crore for the fiscal year ending March FY23. Despite a modest increase in revenue from operations by 3.1 percent to Rs 1,394.6 crore compared to the previous year, robust operating performance and a decline in input costs contributed to the substantial profit growth. Over the FY21-FY23 period, the company witnessed a compound annual growth rate (CAGR) of 130.65 percent in profit and 11.15 percent in revenue.

EBITDA (earnings before interest, tax, depreciation, and amortization) soared by 107 percent year-on-year to Rs 196 crore, with the margin expanding from 7.01 percent to 14.07 percent during the same period.

For the six months ending September FY24, the ethnic namkeen manufacturer reported nearly 7 percent year-on-year growth in profit, amounting to Rs 55.6 crore, supported by strong operating performance. However, revenue declined by 2.5 percent to Rs 676.2 crore during the same period.

Intensive Fiscal Services, Axis Capital, and JM Financial have been appointed as the merchant bankers for the upcoming IPO.