Gopal Snacks IPO; FMCG company IPO to begin from March 06; Key Details here

Gopal Snacks is into Consumer FMCG and is looking raise funds through Offer for Sale

Gopal Snacks to raise around Rs 650 crores through public issue IPO

Gopal Snacks IPO is a public offering of shares by Bipinbhai Vithalbhai Hadvani, Dakshaben Bipinbhai Hadvani and Gopal Agriproducts Private Limited. The IPO will open on March 06 and will close on March 11. The price band is ₹380 to ₹401 per share and the lot size is 37 shares. The issue size is ₹650. crore. The shares are expected to be listed on NSE, BSE on March 14 (^). Some additional information that you may find useful are: Company has around 31% market share in Gathia market in FY23 (Indian organised Gathia market is estimated at Rs14bn/Rs22bn in FY23e/FY27e). Gopal's gathia segment grew at a CAGR of 17% during FY21-FY23 to Rs4.24bn. Revenue mix for 6MFY24 at 27.6%/28.4%/31.1%/10.0% for Gathia/Namkeen/Western Snacks/Others: (**) - based on higher price band (^) indicative date

Also READ: Rajkot based FMCG Company Gopal Snacks files DRHP with SEBI for the proposed IPO; Key Details here

Key Pointers of Gopal Snacks IPO:

Promoters of the company are Bipinbhai Vithalbhai Hadvani, Dakshaben Bipinbhai Hadvani and Gopal Agriproducts Private Limited Currently promoters hold 93.5% stake in the company. While post-equity promoters stake will be 81.49%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 650 to 650 crs through this IPO.
• The net proceeds of the issue will be utilized to Issue is pure offer for sale (OFS) hence the the objects of the Offer are to,(i) to carry out the Offer for Sale of Equity Shares by the Selling Shareholders aggregating to ₹650 cr; and (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges.
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 05-Mar-24.
• Price band for the IPO has been fixed at Rs 380 to 401 per share and bid lot are in multiple of 37 shares. The implied market cap post-issue at Rs 4,735 to 4,997 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on March 12 and share are expected to be listed on NSE, BSE on March 14.
• Company has direct competition with listed players including Bikaji Foods International and Prataap Snacks.
• Intensive Fiscal Services, Axis Capital, JM Financial has been appointed as Merchant Banker to the issue. Link Intime India Pvt. Ltd. has been appointed as official registrar of the issue.

About Gopal Snacks Limited

Gopal Snacks Limited

Established in 1999, Gopal snacks is fast-moving consumer goods (FMCG) company in India, offering savoury products under brand ‘Gopal’, including ethnic snacks such as namkeen and gathiya, western snacks such as wafers, snack pellets and extruder snacks, along with FMCG that include papad, spices, gram flour or besan, noodles, rusk and soan papdi. Its product portfolio comprised 84 products with 276 SKUs across various product categories.

Company has 6 manufacturing units with combined installed capacity of 979.58 MT. Company has presence across 12 states and UT through 617 distributors.

Company has around 31% market share in Gathia market in FY23 (Indian organised Gathia market is estimated at Rs14bn/Rs22bn in FY23e/FY27e). Gopal's gathia segment grew at a CAGR of 17% during FY21-FY23 to Rs4.24bn. Revenue mix for 6MFY24 at 27.6%/28.4%/31.1%/10.0% for Gathia/Namkeen/Western Snacks/Others

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About Industry

Indian market for savoury snacks including western snacks and ethnic savouries (including gathiya) was estimated to be valued at ₹ 796 billion in Fiscal 2023 and is projected to grow at an approximately 11% CAGR reaching ₹ 1,217 billion by Fiscal 2027. Western snacks and ethnic savouries (including gathiya) were estimated to be contributing 51% and 49% of the Indian savoury snacks market, respectively. The organized market holds a market share of approximately 57% in Fiscal 2023 in the Indian savoury snacksindustry and is forecasted to grow at a 11.7% CAGR during Fiscal 2023 to 2027

Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.