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Gopal Namkeen IPO is a book-built issue of Rs 650.00 crores. The issue is entirely an offer for the sale of 1.62 crore shares.
The IPO opens for subscription on March 6, 2024, and closes on March 11, 2024. The price band for the IPO is set at ₹381 to ₹401 per share and the minimum lot size for an application is 37 Shares.
Company Summary
Established as a partnership firm in 1999 and subsequently incorporated as a company in 2009, This company is a fast-moving consumer goods company in India, offering ethnic snacks, western snacks, and other products in ten States and two Union Territories as of September 30, 2023.
They offer a wide variety of savoury products under their brand ‘Gopal’, including ethnic snacks such as namkeen and gathiya, western snacks such as wafers, extruded snacks, and snack pellets, along with fast-moving consumer goods that include papad, spices, gram flour or besan, noodles, rusk, and soan papdi.
As of September 30, 2023, their product portfolio comprised 84 products with 276 SKUs across their various product categories, thereby addressing a wide variety of tastes and preferences.
They have expanded their footprint across India, with their products being sold in over 523 locations in 10 States and two Union Territories as of September 30, 2023. Their distribution network comprised three depots and 617 distributors, complemented by their sales and marketing team comprising 741 employees, as of September 30, 2023.
The company has six manufacturing units out of which three are primary manufacturing units and three are ancillary manufacturing units. The primary manufacturing units are in Nagpur, Maharashtra; Rajkot, Gujarat; and Modasa, Gujarat. The two ancillary units are situated in Rajkot, Gujarat, and one unit is located in Madosa, Gujarat.
As of September 30, 2023, the six facilities had a total annual installed capacity of 404,728.76 MT. The three primary facilities, including the Rajkot facility that produces papad, had a capacity of 303,668.76 MT, while the three ancillary facilities had a capacity of 101,060.00 MT
Company Strengths
They recorded an increase in their revenue from operations from ₹ 11,288.61 million in Fiscal 2021 to ₹ 13,946.53 million in Fiscal 2023 at a CAGR of 11.15% and their EBITDA increased from ₹ 603.52 million in Fiscal 2021 to ₹ 1,962.25 million in Fiscal 2023, at a CAGR of 80.31%. Further, they recorded an increase in their profit after tax from ₹ 211.22 million in Fiscal 2021 to ₹ 1,123.69 million in Fiscal 2023, at a CAGR of 130.65%.
As per the F&S Report, the Indian market for savoury snacks which includes western snacks and ethnic savouries or traditional snacks (including gathiya), is estimated to be valued at ₹ 796 billion in Fiscal 2023, of which western snacks and ethnic savouries (including gathiya) were estimated to be valued at ₹ 409 billion and ₹ 388 billion, contributing 51% and 49% of the overall Indian savoury snacks market.
Over the years, their efforts towards building their brand through marketing and brand-building initiatives, have resulted in a positive brand recall among their target audience, which has helped them to establish a loyal customer base.
Company Financials
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 434.54 | 461.28 | 399.72 | 341.89 |
| Revenue | 677.97 | 1,398.54 | 1,356.48 | 1,129.84 |
| Profit After Tax | 55.57 | 112.37 | 41.54 | 21.12 |
| Net Worth | 346.10 | 290.88 | 177.66 | 135.74 |
| Reserves and Surplus | 333.17 | 277.60 | 176.56 | 135.03 |
| Total Borrowing | 26.05 | 106.37 | 164.12 | 138.99 |
Amount in ₹ Crore | ||||
Objectives of the IPO
The Company will not receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Selling Shareholders net of the Offer expenses
Promoters of the company
Bipinbhai Vithalbhai Hadvani, Dakshaben Bipinbhai Hadvani and Gopal Agriproducts are the Promoters of the Company. The Promoters collectively hold 113,390,017 Equity Shares, representing 91.00% of the pre – Offer issued, subscribed and paid–up share capital of the Company.
IPO details
| IPO Date | March 6, 2024 to March 11, 2024 |
| Listing Date | Thursday, March 14, 2024 |
| Face Value | ₹1 per share |
| Price Band | ₹381 to ₹401 per share |
| Lot Size | 37 Shares |
| Total Issue Size | 16,209,476 shares (aggregating up to ₹650.00 Cr) |
| Offer for Sale | 16,209,476 shares of ₹ (aggregating up to ₹650.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 37 | ₹14,837 |
| Retail (Max) | 13 | 481 | ₹192,881 |
| Small-HNI(Min) | 14 | 518 | ₹207,718 |
| small-HNI(Max) | 67 | 2,479 | ₹994,079 |
| Large-HNI (Min) | 68 | 2,516 | ₹1,008,916 |
Allotment Schedule
| Basis of Allotment | Tuesday, March 12, 2024 |
| Initiation of Refunds | Wednesday, March 13, 2024 |
| The credit of Shares to Demat | Wednesday, March 13, 2024 |
| Listing Date | Thursday, March 14, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 11, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
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