Gopal Snacks has announced that it will launch its initial public offering (IPO), which received regulatory approval earlier this year, on March 6. The issue will be available for public subscription till March 11.
The price range for the public offering, which consists entirely of an offer for sale (OFS) worth up to INR 650 crore, will be disclosed on Friday.
Given that the IPO is structured as an Offer for Sale (OFS), the company will not receive any proceeds. Instead, all funds raised will be directed to the selling shareholders, namely Bipinbhai Vithalbhai, Gopal Agriproducts, and Harsh Sureshkumar.
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About 50% of the offer will be allocated to qualified institutional investors, with 35% reserved for retail investors and 15% designated for non-institutional investors.
Gopal Snacks, an Indian fast-moving consumer goods (FMCG) company, holds a significant market presence in Gujarat. Under its brand ‘Gopal’, the company offers a diverse range of savory products, encompassing traditional snacks like namkeen and gathiya, as well as western snacks such as wafers, snack pellets, and extruder snacks.
As of September 2023, the company’s product portfolio included 84 distinct products with a total of 276 SKUs spanning across different product categories. Operating in India, the company runs six manufacturing facilities, consisting of three primary manufacturing plants and three supplementary manufacturing facilities.
The three main manufacturing facilities are situated in Nagpur, Rajkot, and Modasa. These sites are primarily dedicated to producing the company’s finished goods.
The three supplementary manufacturing facilities specialize in the production of besan (gram flour), raw snack pellets, and seasoning and spices. These items are primarily intended for internal consumption, used in the manufacturing of finished products.
For the six months ended September 2023, revenue from operations fell 3% year-on-year to INR 676 crore. Profit after tax during the same period increased marginally to INR 55.5 crore from INR 51.9 crore in the last year period.
Intensive Fiscal Services, Axis Capital, and JM Financial are the book-running lead managers, and Link Intime India is the registrar of the offer.
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