Gopal Snacks debuts at 13% discount to issue price

Despite mixed signals from analysts, the received a steady response with 9 times subscription on strong interest from institutional and non-institutional investors.

Since the IPO is an OFS, the company will not receive any proceeds and the entire funds will go to selling shareholders.

Gopal Snacks is a fast-moving consumer goods (FMCG) 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.
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As of September 2023, its product portfolio comprised 84 products with 276 SKUs across our various product categories. The company operates six manufacturing facilities comprising three primary manufacturing facilities and three ancillary manufacturing facilities in India.

The three primary manufacturing facilities are located at Nagpur, Rajkot and Modasa. These 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.

For the six months ended September 2023, revenue from operations fell 3% year-on-year to Rs 676 crore. Profit after tax during the same period increased marginally to Rs 55.5 crore from Rs 51.9 crore in the last year period.

The company recorded an increase in its revenue from operations from Rs 1129 crore in FY21 to Rs 1395 crore in FY23, growing at a CAGR of 11.15%. EBITDA for the same period rose at a CAGR of 80% to Rs 196 crore in FY23.

Intensive Fiscal Services, Axis Capital, and acted as the book-running lead managers, and Link Intime India was the registrar of the offer.

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