Rajkot-based Gopal Snacks has initiated the process of raising INR 650 crore through an Initial Public Offering (IPO) by filing preliminary papers with the capital markets regulator Sebi. According to the Draft Red Herring Prospectus (DRHP) submitted on Tuesday, the proposed IPO is exclusively an Offer For Sale (OFS) of equity shares by promoters and other selling shareholders.
Within the Offer For Sale (OFS), Bipinbhai Vithalbhai Hadvani intends to sell shares amounting to INR 100 crore, Gopal Agriproducts Pvt Ltd plans to divest shares valued at up to INR 540 crore, and Harsh Sureshkumar Shah aims to sell shares worth up to INR 10 crore.
The offering additionally incorporates a provision for eligible employees to subscribe.
Established in 1999, Gopal Snacks is an Indian fast-moving consumer goods company that provides a range of namkeen, western snacks, and other products, catering to markets both within India and internationally.
As of September 2023, the products of the namkeen makers were distributed in 10 states and two Union Territories, supported by a network comprising three depots and 617 distributors.
The company runs three production facilities located in Gujarat at Rajkot and Modasa, and in Maharashtra at Nagpur.
Moreover, it operates three subsidiary manufacturing facilities primarily engaged in the production of besan, raw snack pellets, seasoning, and spices.
These are primarily utilized internally for the production of finished goods such as namkeen, gathiya, and snack pellets.
The company’s revenue from operations saw a rise from INR 1,128.86 crore in FY21 to INR 1,394.65 crore in FY23, while the profit increased from INR 21.12 crore in FY21 to INR 112.37 crore in FY23.
The Initial Public Offering (IPO) is being facilitated by Intensive Fiscal Services, Axis Capital, and JM Financial, who are serving as the book-running lead managers. The company’s equity shares are slated for listing on both the BSE and the NSE.
