Gopal Snacks IPO Review

 

Gopal Snacks Limited, a prominent snack maker based in Rajkot, has disclosed the price band for its Initial Public Offering (IPO), setting it at Rs 381-401 per share for the public issue of Rs 650 crore.

Scheduled to open on March 6, the IPO allows anchor investors to bid a day earlier, on March 5, with the closing date set for March 11.

The shares of Gopal Snacks Limited are expected to be listed on March 14.

Notably, this IPO will be conducted through a pure offer-for-sale (OFS) mechanism, wherein existing shares will be sold by the promoters, and no new shares will be issued.

The Offer for Sale (OFS) will result in the promoters, Gopal Agriproducts and Bipinbhai Vitthalbhai Hadwani, selling equity shares worth Rs 520 crore and Rs 80 crore, respectively.

Additionally, Harsh Sureshkumar Shah will be selling shares worth Rs 50 crore. Currently, promoters hold a substantial 93.5 percent stake in the company, leaving the remaining 6.5 percent for public shareholders.

Axis Growth Avenues AIF-I and Ashoka India Equity Investment Trust PLC each hold 1.48 percent among the public shareholders.

The issue is managed by merchant bankers, including Intensive Fiscal Services, Axis Capital, and JM Financial.

The allocation for the IPO includes 50 percent reserved for qualified institutional investors, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.

Additionally, Gopal Snacks has earmarked shares worth Rs 3.5 crore specifically for its employees.

The issue, after accounting for the reserved portion for employees, will constitute the net issue.

Gopal Snacks Limited, renowned for its offerings of ethnic snacks, western snacks, and other products available across 10 states and two union territories under the Gopal brand, reported a revenue of Rs 1,394.65 crore for the financial year 2023.

The net profit during this period amounted to Rs 112.4 crore. In the April-September period of the fiscal year 2024, the company’s net profit grew by nearly 7 percent year-on-year to Rs 55.6 crore.

However, revenue from operations declined by 3.3 percent to Rs 676.2 crore during the same period, reflecting the dynamic nature of the snacks market and economic conditions.

Source:

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Gopal Snacks IPO: Price Band Fixed, Issue Open on March 6