Rajkot-headquartered Gopal Snacks, a leading player in the fast-moving consumer goods (FMCG) industry, has taken substantial steps towards securing funds. They have submitted draft preliminary documents amounting to ₹650 crore with the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO). According to details provided in the company’s Draft Red Herring Prospectus (DRHP), the forthcoming IPO solely revolves around the offer for sale (OFS) of equity shares by current shareholders, encompassing promoters and other sellers.
The sale of shares through the Offer for Sale (OFS) consists of a maximum of ₹100 crore from Bipinbhai Vithalbhai Hadvani, up to ₹540 crore from Gopal Agriproducts Pvt Ltd, and an additional sum of up to ₹10 crore from Harsh Sureshkumar Shah. Notably, the offering also includes a provision allowing eligible employees to participate in subscription. Overseeing the IPO as book-running lead managers are Intensive Fiscal Services, Axis Capital, and JM Financial. As part of its strategic plan, the company aims to list its equity shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Established in 1999, Gopal Snacks is a company that focuses on crafting a wide array of products including namkeen, western snacks, and diverse FMCG goods. These items have not only captured significant market share throughout India but also internationally. Presently, Gopal Snacks’ product line is available in 10 states and two Union Territories. The company boasts a robust distribution network, encompassing three depots and reaching out through 617 distributors. Operating across multiple locations, the company’s manufacturing facilities are situated in Rajkot and Modasa within Gujarat, along with another facility in Nagpur, Maharashtra. Complementing its primary production sites, Gopal Snacks manages three additional manufacturing units specifically dedicated to producing raw materials essential for the creation of its finished goods.
Gopal Snacks demonstrated remarkable financial growth, witnessing a substantial increase in revenue from ₹1,128.86 crore in FY21 to ₹1,394.65 crore in FY23. Concurrently, its profits surged significantly, escalating from ₹21.12 crore to ₹112.37 crore during the corresponding period. The company takes pride in its status as the leading gathiya manufacturer in India, placing itself among esteemed listed entities such as Bikaji Foods International and Prataap Snacks.
While the promoters retain a commanding 93.5 percent stake in the company, the remaining 6.5 percent is dispersed among public shareholders such as Harsh Sureshkumar Shah, Axis Growth Avenues AIF – I, and Ashoka India Equity Investment Trust PLC. Despite experiencing limited revenue growth, the company achieved a remarkable 170.5 percent year-on-year surge in profit for FY23. This impressive uptick was underpinned by the company’s strong operational performance and a reduction in input costs.
Despite Gopal Snacks recording a nearly 7 percent year-on-year profit growth of Rs 55.6 crore for the six months concluding in September FY24, there was a slight downturn in revenue by 2.5 percent, amounting to Rs 676.2 crore during this timeframe.
