Gopal Snacks Limited IPO
The much-anticipated Initial Public Offering (IPO) of Gopal Snacks Limited, the renowned Namkeen (savory snacks) maker, has come to a close! The bidding window closed on Monday, March 11th, 2024, after receiving a robust response from investors.
The basis of allotment for the IPO is expected to be finalized by Tuesday, March 12th, 2024. Investors can then anticipate refunds for unsuccessful applications by March 13th. Demat account credit for allotted shares is also expected on the same day. Finally, the big day arrives - Gopal Snacks Limited is scheduled to list on the NSE and BSE mainboards on March 14th, 2024.
A Sweet Ending for Gopal Snacks
The entirely offer-for-sale (OFS) IPO, where existing shareholders sell their shares, garnered a total subscription of 9.5 times. This translates to bids for 10.8 crore shares against the 1.14 crore shares offered. This strong subscription indicates significant investor interest in the company's future prospects.
Breaking Down the Numbers
Here's a closer look at how the subscription played out across different investor categories:
Retail Individual Investors (RIIs): The retail investor category subscribed a modest 4.22 times, with valid bids received for 2.38 crore shares out of the 59.39 lakh shares allotted to them.
Qualified Institutional Buyers (QIBs): The institutional investor category displayed strong enthusiasm, subscribing to the issue a whopping 18.42 times.
Non-Institutional Investors (NIIs): Non-institutional investors also showed healthy interest, subscribing to the issue 10.00 times.
IPO Detail
The promoters and other investors are offering ₹650 crore worth of equity shares for sale as part of the Gopal Snacks initial public offering (IPO).
There will be another selling stakeholder, Harsh Sureshkumar Shah (selling shares worth ₹50 crore), in addition to promoter Bipinbhai Vithalbhai Hadvani (selling shares worth ₹80 crore) and Gopal Agriproducts Private Ltd (selling shares worth ₹520 crore).
Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited are the book-running head managers for the Gopal Namkeen IPO, while Link Intime India Private Ltd is the registrar.
About the Company
Founded in 1999 in Rajkot, Gujarat, by the Hadvani family, Gopal Snacks began its journey by supplying snacks to the local market. With a focus on quality and authentic flavors, the company quickly gained popularity, expanding its product line to include a variety of namkeens, gathiyas, western snacks, and even sweets. Today, Gopal Snacks boasts a presence across 10 states and 2 Union Territories, offering over 80 products under its flagship brand "Gopal."
Gopal Snacks' success stems from several key strengths. Their extensive distribution network, coupled with a strong sales and marketing team, ensures widespread reach and brand visibility. Additionally, their focus on quality ingredients and unique flavors, particularly in the gathiya segment, sets them apart from competitors.
However, the Indian snack market is a battleground, with established national players like Nestle and Britannia, as well as regional powerhouses like Bikaji, vying for market share. Emerging players focusing on healthier alternatives also pose a challenge.
Revenue and Profit
Gopal Snacks has shown impressive growth in its revenue, sales, and profit over the years. According to its draft red herring prospectus (DRHP) filed with SEBI, the company's revenue from operations increased from Rs 4,068.9 million in fiscal 2021 to Rs 5,551.2 million in fiscal 2023, representing a compound annual growth rate (CAGR) of 16.7%. Its net profit also increased from Rs 247.8 million in fiscal 2021 to Rs 403.6 million in fiscal 2023, representing a CAGR of 25.8%. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) margin improved from 13.9% in fiscal 2021 to 15.4% in fiscal 2023.
Unique Features
Gopal Snacks has a strong focus on product innovation and quality that sets it apart from its competitors. The company offers a variety of products that cater to different tastes and preferences of its customers. Some of its unique products include gathiya (a traditional Gujarati snack), vanela gathiya (a soft and fluffy version of gathiya), fulvadi gathiya (a crispy and spicy version of gathiya), moong dal (a roasted split green gram snack), extruded snacks (such as cheese balls and rings) and snack pellets (such as pasta shapes and wheels). The company also offers a premium range of products such as dry fruits gathiya, kesar pista gathiya, and chocolate-coated wafers.
The company ensures that its products are made with high-quality ingredients and adhere to strict hygiene standards. The company has obtained various certifications such as ISO 22000:2005, FSSAI, HACCP, and BRC for its manufacturing facilities. The company also uses advanced technology such as automated frying systems, nitrogen flushing machines, and metal detectors to ensure consistent quality and freshness of its products.
Investment in Research and Development
Gopal Snacks has invested significantly in research and development (R&D) to enhance its product portfolio and improve its operational efficiency. The company has a dedicated R&D team comprising food technologists, engineers, and quality control experts who work on developing new products, improving existing products, optimizing processes, and reducing costs. The company has also collaborated with external agencies such as the Central Food Technological Research Institute (CFTRI) and the Indian Institute of Food Processing Technology (IIFPT) for technical assistance and guidance.
The company's R&D expenditure increased from Rs 18.4 million in fiscal 2021 to Rs 32.7 million in fiscal 2023, representing a CAGR of 32%. Some of the outcomes of the company's R&D efforts include launching new products such as cheese wafers, multigrain wafers, ragi wafers, and nacho chips; introducing new packaging formats such as zipper packs; reducing oil consumption by using vacuum frying technology; and increasing shelf life by using modified atmosphere packaging technology.
Conclusion
The curtains have closed on the Gopal Snacks Limited IPO, leaving behind a wave of optimism. The strong investor response, particularly from institutional players, highlights the confidence in the brand's potential. With a successful listing on the horizon, Gopal Snacks is poised to embark on a new chapter fueled by fresh capital. This not only benefits the company's growth plans but also potentially creates exciting opportunities for investors seeking a taste of the ever-growing Indian snack market. So, stay tuned for the listing on March 14th, and who knows, Gopal Snacks might just become the next big bite in your investment portfolio!
FAQs
Q: What type of IPO was Gopal Snacks Limited offering?
Gopal Snacks Limited offered an offer for sale (OFS) IPO. This means existing shareholders were selling their shares to the public, and the company itself wasn't raising any new capital.
Q: When did the Gopal Snacks Limited IPO subscription window close?
The subscription window for the Gopal Snacks Limited IPO closed on March 11th, 2024.
Q: How many times was the IPO oversubscribed?
The Gopal Snacks Limited IPO was subscribed a total of 9.5 times.
Q: How did the subscription vary across investor categories?
Retail Individual Investors (RIIs): Subscribed 4.22 times.
Qualified Institutional Buyers (QIBs): Subscribed a significant 18.42 times.
Non-Institutional Investors (NIIs): Subscribed 10.00 times.
Q: When will I know if my IPO application was successful?
The basis of allotment for the IPO is expected to be finalized by March 12th, 2024. This will determine if your application received shares.
Q: What happens if my application wasn't successful?
If your application wasn't successful, you'll receive a refund for the application amount by March 13th, 2024.
Q: When will the shares be credited to my Demat account?
If your application is successful, the allotted shares will be credited to your Demat account on March 13th, 2024.
Q: When will Gopal Snacks Limited list on the stock exchanges?
Gopal Snacks Limited is scheduled to list on the NSE and BSE mainboards on March 14th, 2024.
Q: Why might investors have been interested in the Gopal Snacks Limited IPO?
Some potential reasons for investor interest include the company's established brand name, strong regional presence in the growing Indian snack market, and potentially attractive financials (depending on available information).
Q: Where can I find more information about the Gopal Snacks Limited
IPO?
You can consult the company's IPO prospectus, and check our website (click here)