Gopal Snacks Ltd IPO: Issue Details, Open/Close Date | Research 360 by Motilal Oswal
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Gopal Snacks

CMP

323.95

+1.90 (0.59%)

  • DRHP
₹401

Offer Price

₹ 650.00 Cr

Issue Size

₹ 14,837

Min Investment

9.02x

Times Subscribed

37

Lot size

Time Line

  • 06
    Mar 2024
    Open
  • 11
    Mar 2024
    Close
  • 12
    Mar 2024
    Finalisation of Basis of Allotment
  • 13
    Mar 2024
    Initiation of Refunds
  • 13
    Mar 2024
    Transfer of Shares to Demat Account
  • 14
    Mar 2024
    Listing Date

Shares Offered

Number of Times Subscribed

Objects of the Offer

  • Further enhance its presence in its core market of Gujarat.

  • Accelerate expansion in its focus markets.

  • Continue to launch new products, expand wallet share with consumers and grow its consumer base.

  • Enhance brand awareness.

  • Continue to leverage technology to further optimise its operations.

Products & Services

  • The Company is offering a wide variety of savoury products under our brand `Gopal`, including ethnic snacks such as namkeen and gathiya, western snacks such as wafers, snack pellets and

  • Extruder snacks, along with fast-moving consumer goods that include papad, spices, gram flour or besan, noodles, rusk and soan papdi which are semi-perishable in nature.

Strengths

  • Its position in the Indian snack food market as an ethnic savouries brand with a significant presence in Gujarat coupled with our focus on quality and various offerings have helped us create a brand recognition.

  • Diversified product portfolio capable of capturing growing Indian snacks market.

  • Its position as a manufacturer of gathiya in India coupled with the growing popularity of gathiya as a snack, present opportunities for the company to expand in the gathiya segment.

  • Strategically located manufacturing facilities.

  • Vertically integrated advanced business operations resulting in quality products and cost and operational efficiencies.

Risks

  • The company is significantly dependent on the sale of its products namely, namkeen, gathiya and snack pellets. The company aggregate revenue from sale of namkeen, gathiya and snack pellets accounted for 88.96%, 85.25%, 81.66%, 83.24% and 77.89% of its revenue from operations in Fiscal 2021, 2022, 2023 and the six months ended September 30, 2022 and 2023, respectively. An inability to anticipate and adapt to evolving consumer tastes, preferences and demand for particular products, or ensure product quality may adversely impact demand for its products, brand loyalty and consequently the company`s business, results of operations, financial condition and cash flows.

  • The sale of its products is concentrated in the company core market of Gujarat. In Fiscal 2021, 2022 and 2023 and the six months ended September 30, 2022 and 2023, its revenue from sale of products in Gujarat accounted for 74.31%, 76.27%, 79.08%, 79.06% and 76.49% of its revenue from operations, respectively. Any adverse developments affecting its operations in such region, could have an adverse impact on the company`s business, financial condition, results of operations and cash flows.

  • Its cost of materials consumed accounted for 81.87%, 79.39%, 71.62%, 72.99% and 70.02% of its revenue from operations in Fiscal 2021, 2022 and 2023 and the six months ended September 30, 2022 and 2023, respectively. Inadequate or interrupted supply and price fluctuation of its raw materials and packaging materials could adversely affect its business, results of operations, cash flows and financial condition.

  • Its Promoter Group does not include Prafulchandra Vitthal Hadvani (earlier known as Prafulbhai Vitthalbhai Hadvani), brother of Bipinbhai Vithalbhai Hadvani, one of its Promoters and his Connected Entities (as defined below) and this Draft Red Herring Prospectus does not include any disclosures pertaining to Prafulchandra Vitthal Hadvani and his Connected Entities.

  • Its Promoters have encumbered their Equity Shares by way of pledge. Any exercise of such encumbrance could dilute the shareholding of its Promoters and consequently dilute the aggregate shareholding of its Promoters, which may adversely affect the company`s business and financial condition.

Company Promoters

Promoters Holding

Issue For IPO
91.00%
Pre Holding

91.00%

Post Holding

-

Top Promoters Holding

Financials

All values in Cr

Mar-2022 Mar-2023 Mar-2023 3-Yr trend
Revenue 1,352.16 (19.80%) 1,394.65 (3.10%) 38.63 (-)
Gross Profit 1,352.16 (19.80%) 1,394.65 (3.10%) 38.63 (-)
Net Income 1,352.16 (19.80%) 1,394.65 (3.10%) 38.63 (-)
Assets 1,352.16 (19.80%) 1,394.65 (3.10%) 38.63 (-)
Liabilities 1,352.16 (19.80%) 1,394.65 (3.10%) 38.63 (-)

Peers

Company Name Revenue (Cr) Net Profit (Cr) Assets (Cr) Liabilities (Cr) ROE EPS BVPS Current Ratio Debt to Assets
Gopal Snacks Ltd 1,394.65 112.37 418.19 127.31 38.63 0.00 23.34 4.75 0.26
Bikaji Foods International Ltd 1,966.07 128.54 1,271.63 1,271.63 13.47 5.14 38.17 10.10 0.15
Prataap Snacks Ltd 1,652.93 20.31 911.62 911.62 3.14 8.51 275.53 2.22 0.00

Book Running Managers

  • Intensive Fiscal Services Pvt Ltd
  • Axis Capital Ltd
  • JM Financial Ltd

Registrar & Transfer Agent

Link Intime India Pvt Ltd

C-101 247 Park,
L B S Marg,
Vikhroli West - Mumbai-400083
Phone : 91-22-49186000 Fax: 91-22-49186060

Company Contact Information

Plot No G2322,G2323,G2324,
GIDC Metoda Taluka Lodhika,
Rajkot - 360021
Phone : +91 28 2728 7370 Email : cs@gopalsnacks.com www.gopalnamkeen.com

Offer Related Information

Initial public offering of up to 1,62,16,886 equity shares of face value of Re. 1 each ("Equity Shares") of Gopal Snacks Limited ("Company" or "Issuer") for cash at a price of Rs. 401 per equity share (including a share premium of Rs. 400 per equity share) ("Offer Price") through an offer for sale of upto 1,62,16,886 equity shares aggregating up to Rs. 650.00 crores ("Offer for Sale" or "Offer") by the selling shareholders (as defined below), comprising of up to 1,995,924 equity shares... More

News

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