Gopal Snacks Limited Files Draft Papers With SEBI For Rs 650 Cr Mainboard IPO

Indian FMCG firm Gopal Snacks Limited, a Rajkot-based ethnic snack company, has submitted its Draft Red Herring Prospectus (DRHP) to capital market regulator Sebi in an effort to raise funds via initial public offering (IPO). The shares, which have a face value of Re 1, are solely an offer by the promoters and other selling shareholders to sell equity shares up to Rs 650 crore; no fresh shares are being issued.

Bipinbhai Vithalbhai Hadvani is offering up to Rs 100 crore, Gopal Agriproducts Private Limited (the promoter selling shareholders) is offering up to Rs 540 crore, and Harsh Sureshkumar Shah (the other selling shareholder) is offering up to Rs 10 crore under the offer for sale (OFS) component.

The offer is being made through the book-building process; with 15% of the net issue reserved for non-institutional investors, 35% for retail individual investors, and not more than 50% for proportionate basis to qualified institutional buyers. The offer also includes a reservation for subscription by eligible employees, as per the DRHP.

At a compound annual growth rate (CAGR) of 11.15%, the companies' revenue from operations climbed from Rs 1,128.86 crore in FY 2021 to Rs 1,394.65 crore in FY 2023. From Rs 21.12 crore in FY 2021 to Rs 112.37 crore in FY 2023, the net profit climbed at a CAGR of 130.65%.

At a compound annual growth rate (CAGR) of 80.31%, EBITDA rose from Rs 60.35 crore in FY 2021 to Rs 1,96.22 crore in FY 2023. The revenue from operations for the six months that ended on September 30, 2023, was Rs 676.19 crore, while the profit after tax was Rs 55.56 crore.

The registrar of the offer is Link Intime India Private Limited, while the book-running lead managers are Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited. It has been proposed that the equity shares of the company will be listed on the NSE and BSE.

Among major snack companies in India, including Bikaji Foods International Limited, Haldiram (Nagpur +Delhi), Bikanervala Foods Private Limited, Prataap Snacks Limited, Balaji Wafers Private Limited, PepsiCo India Holdings Pvt Ltd, and DFM Foods Limited, Gopal Snacks experienced the highest fixed asset turnover ratio, return on equity, and return on capital employed in FY 2022.

Based on a F&S Report cited in the DRHP, as of FY2023, it is the largest producer of snack pellets and gathiya in terms of volume and sales revenue, and it ranks fourth in the organised sector of ethnic savouries (including gathiya) in terms of market share in India. Gopal Snacks maintained a network of 3 depots and 617 distributors as of September 30, 2023, and its products were sold in 10 states and 2 Union Territories.