Gopal Snacks, based in Rajkot, has submitted its draft preliminary papers to the Securities and Exchange Board of India (SEBI) with plans to raise ₹650 crore through an initial public offering (IPO). The proposed IPO consists entirely of an offer for sale (OFS) of equity shares by promoters and other selling shareholders, as outlined in the company’s Draft Red Herring Prospectus (DRHP).
The OFS includes the sale of shares up to ₹100 crore by Bipinbhai Vithalbhai Hadvani, up to ₹540 crore by Gopal Agriproducts Pvt Ltd, and up to ₹10 crore by Harsh Sureshkumar Shah. The offer also incorporates a reservation for subscription by eligible employees.
Intensive Fiscal Services, Axis Capital, and JM Financial have been appointed as the book-running lead managers for the IPO. The company’s equity shares are proposed to be listed on the BSE and the NSE.
Founded in 1999, Gopal Snacks is a fast-moving consumer goods (FMCG) company offering namkeen, western snacks, and other products across India and abroad.
As of September 2023, the company’s namkeen products were sold in 10 states and two Union Territories, with a network of three depots and 617 distributors. Gopal Snacks operates manufacturing facilities in Rajkot and Modasa in Gujarat, as well as Nagpur in Maharashtra.
The company also runs three ancillary manufacturing facilities primarily producing besan, raw snack pellets, seasoning, and spices, which are used internally for producing finished products like namkeen, gathiya, and snack pellets.
In terms of financials, Gopal Snacks saw its revenue from operations rise from ₹1,128.86 crore in FY21 to ₹1,394.65 crore in FY23, with profits growing from ₹21.12 crore in FY21 to ₹112.37 crore in FY23.