Gopal Snacks Ltd IPO: Review, Valuation, Opening Date & GMP

Gopal Snacks Limited IPO  - Complete Overview

Established in 1999, Gopal Snacks Limited stands as a prominent FMCG entity, distributing ethnic and western snacks as well as a range of other products across ten States and two Union Territories in India. 

Operating under the brand name 'Gopal', the company offers a diverse array of savory items, encompassing traditional delicacies like namkeen and gathiya, alongside western snacks such as wafers, extruded snacks, and snack pellets. 

Additionally, it provides fast-moving consumer goods including papad, spices, gram flour (besan), noodles, rusk, and soan papdi. With an extensive product lineup of 276 SKUs across 84 different categories.

Gopal Snacks caters to a wide spectrum of tastes and preferences, achieving sales of 8.01 million packets per day across 533 locations in India. 

Its robust distribution network comprises three depots and 617 distributors, supported by a dedicated sales and marketing team consisting of 741 employees as of September 30, 2023. 

The company maintains a fleet of 263 logistics vehicles to facilitate its distribution operations.

Gopal Snacks operates six manufacturing facilities, including three primary facilities situated in Nagpur, Maharashtra; Rajkot, Gujarat; and Modasa, Gujarat, along with three ancillary facilities, two located in Rajkot, Gujarat, and one in Modasa, Gujarat. 

As of September 30, 2023, the combined annual installed capacity of these facilities stood at 404,728.76 metric tons, with primary facilities contributing 303,668.76 metric tons and ancillary facilities contributing 101,060.00 metric tons. 

Additionally, the company boasts a cold storage unit within its primary manufacturing facility in Modasa, Gujarat, with a capacity of 40,000 metric tons as of September 30, 2023.

Gopal Snacks Limited IPO Overview:

Gopal Snacks Limited IPO date is slated to be open for subscription from March 6, 2024, to March 11, 2024. This IPO follows a Book Built Issue IPO.

Gopal Snacks Limited IPO price is set between the range of₹381 to ₹401 per share. 

The total issue size of this IPO amounts to Rs.650.00 Cr. The company has reserved 50% for institutional investors, 15% for non-institutional investors and 35% for retail investors. 

Company Financial

Compared to the previous fiscal year, Gopal Snacks Limited has seen growth in total assets, net worth and total revenue. The profit after tax has increased, while total borrowings have decreased.

(Amount in crores)

Period	30 Sep 2023	31 Mar 2023	31 Mar 2022
Total Assets	434.54	461.28	399.72
Total Revenue	677.97	1,398.54	1,356.48
PAT	55.57	112.37	41.54
Net worth	346.10	290.88	177.66
Reserve & Surplus	333.17	277.60	176.56
Total Borrowings	26.05	106.37	164.12

Product Wise Revenue Break up

(Amount in millions)

Category	Fiscal 2021	Fiscal 2022	Fiscal 2023
Ethnic Snacks
Gathiya	3,623.09	4,463.78	4,238.73
Namkeen	4,077.79	4,283.48	4,055.90
Total (A)	7,700.87	8,747.26	8,294.63
Western Snacks
Snack Pellets	2,341.64	2,780.21	3,094.63
Wafers	524.62	590.90	843.53
Extruded Snacks	147.46	197.81	165.27
Total (B)	3,013.72	3,568.92	4,103.42
Other Products
Papad	384.94	465.83	529.47
Besan	48.23	253.84	414.92
Spices	9.38	11.63	50.27
Others	0.00	2.97	41.07
Total (C)	406.55	734.28	1,053.73
Others (D)	167.47	471.15	512.75
Total (A+B+C+D+)	11,288.61	13,521.61	13,946.53

 

The Objective of the Issue

The company will not be receiving any proceeds from the Offer. Instead, all the proceeds, known as the "Offer Proceeds," will be received by the Selling Shareholders after deducting the Offer expenses.

Peers of Gopal Snacks Limited IPO

Name of the Company	Face Value (₹)	EPS (₹)	P/E Ratio
Gopal Snacks Limited	1	9.02	-
Bikaji Foods International Limited	1	5.14	104.67
Prataap Snacks Limited	5	8.51	137.87

 

 

 

IPO's Strengths 

• Established as a prominent player in the Indian snack food market, specializing in ethnic savouries with a strong foothold in Gujarat, bolstering brand recognition through quality and diverse offerings.

• Boasting a diversified product portfolio poised to capitalize on the burgeoning Indian snacks market.

• Positioned as a leading gathiya manufacturer in India, leveraging the increasing demand for gathiya snacks to explore growth avenues in this segment.

• Strategically positioned manufacturing facilities to optimize operations and enhance efficiency.

• Vertically integrated business operations ensuring top-notch product quality and streamlined cost-effective processes.

• Supported by a robust distribution network to effectively reach target markets.

• Proven expertise in promotion and effective management.

• Demonstrated history of achieving profitable financial results.
  
  

IPO weaknesses 

• The company has received eight notices under the Food Safety and Standards Act, 2006.

• Business operations are subject to seasonality, with lower revenues expected outside of festive periods and during school summer breaks, potentially impacting the company's performance.

• Operating in a competitive market, any increase in competition could have adverse effects on the company.

• Revenue from operations, EBITDA, EBITDA margins, PAT, and PAT margins may decline in the future due to various factors.

• The Company, its Promoters, and Directors are involved or may be involved in certain legal and regulatory proceedings.

• Failure to comply with food safety laws, environmental regulations, and other applicable regulations regarding manufacturing facilities could negatively impact the business.
  
  

 

 

IPO GMP Today 

GMP of Gopal Snacks Limited IPO is Rs.8.

Gopal Snacks Limited IPO timetable (Tentative)

Gopal Snacks Limited IPO is scheduled from March 6 to March 11, 2024, with allotment on March 12, refund initiation on March 13, and listing on March 14, 2024.

Events	Date
IPO Opening Date	March 6, 2024
IPO Closing Date	March 11, 2024
IPO Allotment Date	March 12, 2024
Refund initiation	March 13, 2024
IPO Listing Date	March 14, 2024

Gopal Snacks Limited IPO Details 

Gopal Snacks Limited IPO, with a face value of Rs.1 per share, opens on March 6 and closes on March 11, offering 16,209,476 shares between the range of Rs.381 to Rs. 401 per share, with a lot size of 37 shares, and will be listed on NSE and BSE.

IPO opening & closing date	March 6, 2024 to March 11, 2024
Face value	₹1 per share
Issue Price	₹381 to ₹401 per share
Lot Size	37 Shares
Price of 1 lot	₹14,837
Issue Size	16,209,476 shares (aggregating up to ₹650.00 Cr)
Offer for sale	16,209,476 shares of ₹1 (aggregating up to ₹650.00 Cr)
Employee Discount Rs 38 per share	Employee Discount Rs 38 per share
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Pvt. Ltd.

Gopal Snacks Limited IPO Lot Details 

For Gopal Snacks Limited IPO, the retail investor can bid for a minimum of 1 lot and a maximum of 13 lots, while for HNI investors, the minimum investment is 14 lots (518 shares) at Rs.207,718.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	13 lot
Minimum Lot Investment (HNI)	14 lot
Maximum Lot Investment (HNI)	67 lot

 

 

Gopal Snacks Limited IPO Reservation

Institutional share Portion	50%
Non-institutional share Portion	15%
Retail share Portion	35%

Promoters and Management of Gopal Snacks Limited

• Bipinbhai Vithalbhai Hadvani

• Dakshaben Bipinbhai Hadvani 

• Gopal Agriproducts

Pre-issue Promoter shareholding	93.50%
Post-issue Promoter shareholding

 

Gopal Snacks Limited IPO Lead Managers

• Intensive Fiscal Services Private Limited

• Axis Capital Limited 

• Jm Financial Limited
  
  

Dividend Policy

The Company has not declared any dividends on the Equity Shares in past fiscal years. Future dividend payments will depend on the company's future performance and financial condition.

 

 

Conclusion

Gopal Snacks Limited, a prominent FMCG brand, boasts a strong distribution network and a diverse product range with a substantial consumer base. The company has demonstrated satisfactory financial performance. Despite these positive aspects, potential investors are advised to carefully evaluate all relevant factors, including the issue price. A thorough assessment is recommended before participating in the IPO to ensure optimal results.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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