Gopal Snacks IPO – Gopal Snacks Limited, known as Gopal Namkeen, is an FMCG company headquartered in India. Specializing in both traditional and western snacks, the company caters to markets within India as well as internationally.
Their product line under the ‘Gopal’ brand includes a diverse range of savory items such as namkeen, gathiya, wafers, extruded snacks, and snack pellets. Alongside these snacks, they also offer staple consumer goods like papad, spices, gram flour (besan), noodles, rusk, and soan papdi. With a portfolio boasting 84 products and 276 SKUs across various categories.
Gopal Snacks has established a strong presence across India, with distribution extending to over 523 locations across 10 states and two Union Territories as of September 30, 2023. Their distribution network comprises three depots and 617 distributors, supported by a sales and marketing team of 741 employees. In addition to traditional retail channels, the company utilizes e-commerce, modern trade, and exports to reach consumers. Operating six manufacturing facilities, including three primary and three ancillary units, Gopal Snacks remains dedicated to delivering quality snacks to its customers.
Gopal Snacks Limited, founded in 2009, is overseen by Mr. Bipinbhai Vithalbhai Hadvani as its Managing Director.
| ipo Date | Min. Investment | Lot Size | Price Range | Issue Size | IPO Doc |
|---|---|---|---|---|---|
| 6 Mar 2024 – 11 Mar 2024 | ₹14,097 | 37 | ₹381 – ₹401 | 650 Cr | View |
For the Gopal Snacks IPO, eligible investors have the option to apply as Regular price band ₹381 – ₹401 and for the Employee category having a price band of ₹343 to ₹363 and a maximum application limit of ₹2 lakh.
Gopal Snacks IPO timeline:
| Gopal Snacks IPO | Date |
|---|---|
| IPO Offer Start | 6 March 2024 |
| IPO Offer Ends | 11 March 2024 |
| Allotment Finalisation | 12 March 2024 |
| Refund Initialisation | 13 March 2024 |
| Share Transfer to Demat | 13 March 2024 |
| Date of Listing | 14 March 2024 |
| Lot Size | 37 |
Financial Performance Overview
The financial performance overview for the years 2021, 2022, and 2023 reveals a steady increase in revenue, total assets, and profit, with notable growth in profit from 21.12 in 2021 to 112 in 2023.
| Year | Revenue | Total Assets | Profit (PAT) |
|---|---|---|---|
| 2021 | 1,129 | 342 | 21.12 |
| 2022 | 1,352 | 400 | 41.54 |
| 2023 | 1,395 | 461 | 112 |
Strengths and Risks of Gopal Snacks IPO
Strengths:
- Diverse Portfolio: The company boasts a range of savory snacks, including ethnic varieties like namkeen and gathiya, alongside western snacks such as wafers, extruded snacks, and snack pellets. Additionally, it offers fast-moving consumer products like papad, spices, besan (gram flour), chikki, nachos, noodles, rusk and soan papdi
- Production Capacity: As of September 30, 2023, the company’s primary manufacturing facilities had an aggregate annual installed capacity of 303,668.76 MT, with ancillary facilities contributing an additional 101,060.00 MT annually.
- Extensive Distribution Network: The company’s distribution network includes three depots and 617 distributors, facilitating product delivery to retailers across ten states and two Union Territories in India. It possesses 263 logistics vehicles for efficient distribution.
- Revenue Growth: The company witnessed a significant 23.55% increase in revenue from operations, rising from Rs. 1128.86 crore in fiscal 2021 to Rs. 1394.65 crore in fiscal 2023. Moreover, its profit after tax surged by 432.00% during the same period.
- Strong Presence in Gujarat: The company’s core market in Gujarat consistently contributes a significant portion of its total revenue from operations, representing 74.31%, 76.27%, and 79.08% in Fiscal 2021, 2022, and 2023, respectively.
Risks:
- Dependency on Gujarat Market: Given the substantial reliance on the Gujarat market, any adverse developments in the region could negatively impact the company’s business, financial condition, operational results, and cash flows.
- Vulnerability to Gujarat’s Environment: As the company’s manufacturing facilities are centralized in Gujarat, any social, political, economic, seasonal disruptions, natural calamities, or civil disturbances in the state could adversely affect its business operations, financial condition, and cash flows.
- Compliance with Food Safety Laws: The company’s day-to-day manufacturing activities are governed by various food safety laws and regulations, necessitating compliance and licensing. Non-compliance may result in fines, penalties, or litigation, thereby affecting its business and financial health.
- Legal and Regulatory Proceedings: The company, alongside its promoters and directors, is engaged in various legal and regulatory proceedings. Unfavorable outcomes in these proceedings could have detrimental effects on its business, operational results, financial condition, and cash flows.
- Borrowings and Contingent Liabilities: As of October 31, 2023, the company has borrowings of Rs. 31.75 crore, some of which are subject to restrictive covenants. Additionally, it faces certain contingent liabilities, the materialization of which could adversely impact its business, operational results, financial condition, and cash flows.
