Gopal Snacks has announced the price band for its upcoming initial public offering (IPO) at INR 381-401 per equity share. Subscription for the offering will begin on March 6 and end on March 11. The IPO comprises an offer for sale of INR 650 crore.
The floor price is set at 381 times the face value of shares, which are priced at INR 1 each, while the cap price stands at 401 times.
Bids can be made for a minimum of 1 lot or 37 shares and in multiples thereafter.
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Since the IPO is structured as an Offer for Sale (OFS), the company will not receive any proceeds; instead, all funds will be directed to the selling shareholders, namely Bipinbhai Vithalbhai, Gopal Agriproducts, and Harsh Sureshkumar.
Approximately 50% of the offer will be reserved for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors.
Gopal Snacks, an Indian fast-moving consumer goods (FMCG) company, holds a significant market presence in Gujarat. It offers a diverse range of savory products under the brand ‘Gopal’, encompassing ethnic 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 consisted of 84 products with 276 SKUs spanning various product categories. Operating across India, it manages six manufacturing facilities, including three primary manufacturing sites and three ancillary facilities.
The three main manufacturing facilities are situated in Nagpur, Rajkot, and Modasa. These sites primarily specialize in the production of the company’s finished products.
The three supplementary manufacturing facilities primarily specialize in the production of besan (gram flour), raw snack pellets, and seasoning and spices. These items are mainly intended for internal consumption in the manufacturing of finished products.
For the six months ended September 2023, revenue from operations experienced a 3% year-on-year decline, amounting to INR 676 crore. However, profit after tax for the same period saw a slight increase, rising to INR 55.5 crore from INR 51.9 crore in the corresponding period of the previous year.
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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