Gopal Snacks Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹401
Per ShareLot Size
37 Shares
Minimum Investment
₹14,837
Issue Size
₹650 Cr
Face Value
₹1
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Gopal Snacks Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
91%
Issue Type
Book Building
ISIN
INE0L9R01028
About the Company
Gopal Snacks Limited is a fast-moving consumer goods company in India with a major presence in Gujarat, offering a wide variety of savoury products under its 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. As of September 30, 2023, its product portfolio comprised 84 products with 276 SKUs across its various product categories. As of the date of this Red Herring Prospectus, the company operates six manufacturing facilities comprising three primary manufacturing facilities and three ancillary manufacturing facilities in India. Its three primary manufacturing facilities are located at Nagpur, Maharashtra; Rajkot, Gujarat; and Modasa, Gujarat and these facilities primarily focus on the manufacturing of its finished products. Its three ancillary manufacturing facilities primarily focus on producing besan or gram flour, raw snack pellets, seasoning and spices which are primarily used for captive consumption in the manufacturing of finished products such as gathiya, namkeen and snack pellets. Of the three ancillary manufacturing facilities, two ancillary manufacturing facilities are located at Rajkot, Gujarat and one ancillary manufacturing facility is located at Modasa, Gujarat.
Industry Overview
The Indian packaged food industry was valued at Rs. 2,972 billion in 2018 and stood at Rs. 4,622 billion in 2023 and would reach a market value of Rs. 6,767 billion by 2027. Indian market for savoury snacks including western snacks and ethnic savouries (including gathiya) was estimated to be valued at Rs. 796 billion in Fiscal 2023 and is projected to grow at an approximately 11% CAGR reaching Rs. 1,217 billion by Fiscal 2027. Western snacks and ethnic savouries (including gathiya) were estimated to be contributing 51% and 49% of the Indian savoury snacks market, respectively. The organized market holds a market share of approximately 57% in Fiscal 2023 in the Indian savoury snacks industry and is forecasted to grow at a 11.7% CAGR during Fiscal 2023 to 2027.
Company History
Gopal Snacks Limited was initially formed as a partnership firm as "Gopal Gruh Udhyog" at Rajkot, India with effect from April 1, 1999. The partnership firm was registered under the Partnership Act, 1932 with the Registrar of Firms, Rajkot Division, Rajkot on October 19, 2006. The name of the partnership firm was changed to "Gopal Snacks" with effect from November 23, 2009, and the same was recorded by the Registrar of Firms, Rajkot Division, Rajkot on November 30, 2009. The partnership firm was subsequently converted into a joint stock company and registered as a private limited company under the Companies Act, 1956 under the name "Gopal Snacks Private Limited" pursuant to a certificate of incorporation dated December 7, 2009, issued by the Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently, the Company was converted into a public limited company pursuant to a special resolution passed by the Shareholders in its EGM held on March 15, 2023, following which the name of the Company was changed to "Gopal Snacks Limited", and the Registrar of Companies, Gujarat at Ahmedabad ("RoC") issued a fresh certificate of incorporation on March 31, 2023.
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.
Growth Strategy
- 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.
- Utilise its unutilised capacity and expand manufacturing capacity at its existing facilities and set-up additional strategically located facilities.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
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 aggregating up to Rs. 80.00 crores by Bipinbhai Vithalbhai Hadvani, up to 12,973,510 equity shares aggregating up to Rs. 520.00 crores by Gopal Agriproducts Private Limited (collectively with Bipinbhai Vithalbhai Hadvani, the "Promoter Selling Shareholders") and up to 1,247,452 equity shares aggregating up to Rs. 50.00 crores by Harsh Sureshkumar Shah (collectively with the promoter selling shareholders, the "Selling Shareholders", and such equity shares offered by the selling shareholders, the "Offered Shares"). This offer included a reservation of up to 96,418 equity shares, aggregating up to Rs. 3.5 crores (constituting up to 0.08% of the post offer paid-up equity share capital) for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 13.01% and 12.95%, respectively, of the post-offer paid-up equity share capital. The company and the selling shareholders, in consultation with the brlms, offered a discount of 9.48% to the offer price (equivalent to Rs. 38 per equity share) to eligible employees bidding in the employee reservation portion ("Employee Discount"). The face value of the equity shares is Re. 1 each and the offer price is 401 times the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- 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.
- 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.