Gopal Snacks IPO to open on March 6; check price band and other details

The initial public offering (IPO) of Gopal Snacks will open for public subscription on Wednesday, March 6. The company has fixed the price band at Rs 381-401 for the issue. Interested investors can apply for the IPO for a minimum of 37 equity shares and its multiples thereafter. The IPO will conclude on Monday, March 11.

Founded in 1999, Gopal Snacks is a FMCG company that deals in ethnic and Western snacks in India and abroad. The company offers a variety of snack products including namkeen and gathiya, as well as western snacks such as wafers, extruded snacks, and snack pellets.

The Gopal Snacks IPO is entirely an offer-for-sale (OFS) by promoters and other shareholders including Bipinbhai Vithalbhai Hadvani, Gopal Agriproducts and Harsh Sureshkumar Shah. The existing shareholders would cumulatively offload shares worth Rs 650 crore and the company will not receive any proceeds from the issue. Anchor book for the issue opens on Tuesday, March 5.

Gopal Snacks provides fast-moving consumer goods such as papad, spices, gram flour or besan, noodles, rusk, and soan papdi. The company had 276 SKUs with 84 products from different categories, catering to various tastes and preferences as of November 2023. The company has sold its products to over 523 locations across 10 states and two Union Territories as of September 2023.

The company has six manufacturing units out of which three are primary manufacturing units and three are ancillary manufacturing units. The primary manufacturing units are in Nagpur, Maharashtra; Rajkot, Gujarat; and Modasa, Gujarat. The two ancillary units are situated in Rajkot, Gujarat and one unit is located in Madosa, Gujarat.

For the period ended on September 30, 2023, Gopal Snacks reported a net profit of 55.57 crore with a revenue of Rs 677.97 crore. The company's net profit came in at Rs 112.37 crore with a revenue of Rs 1,398.54 crore for the financial year ended on March 31, 2023.

Gopal Snacks has reserved 50 per cent of the net offer for qualified institutional investors (QIBs), while non-institutional investors (NIIs) will have 15 per cent of shares reserved for them. Retail investors will have 35 per cent of the net issue reserved for them.

Intensive Fiscal Services, Axis Capital and JM Financial are the book running lead managers of the Gopal Snacks IPO, while Link Intime India is the registrar for the issue. Shares of the company are likely to be listed on both BSE and NSE with March 14, Thursday as the tentative date of debut.