Gopal Snacks Rs 650 crore IPO set to open on March 6
Interested investors can bid for a minimum of 37 equity shares, with subsequent bids in increments of 37 shares
image for illustrative purpose
Hyderabad: Gopal Snacks Ltd has announced its initial public offering (IPO) of Rs 650 crore with a price band set at Rs 381 to Rs 401 per share. The IPO, entirely an offer for sale (OFS) by promoters and existing shareholders, will open for subscription from March 6 to March 11. Prior to this, bidding for anchor investors will commence on March 5.
The OFS includes shares from Bipinbhai Vithalbhai Hadvani, Gopal Agriproducts Private Ltd, and Harsh Sureshkumar Shah. Established in 1999 by Bipin Hadvani under Gopal Gruh Udhyog, Gopal Snacks has become a notable player in the FMCG sector, specializing in namkeen, western snacks, and other products. It aims to be India's most trusted FMCG brand, boasting the largest market share in the organized sector of ethnic savouries, including gathiya, as per an F&S report.
India's stock-market surge has enticed many entrepreneurs to go public, including Bipin Hadvani, 57, founder of Gopal Snacks Pvt Ltd. Hadvani's journey from a modest investment of Rs 4,200 to a successful business worth Rs 1,400 crore is remarkable. The company, with its origins in Gujarat, has grown to have a presence in 10 Indian states and 2 Union Territories, reaching over 4 lakh retailers.
The IPO aims to raise capital following a family split, where Bipin raised Rs 540 crore in debt to acquire his brother's stake in the company. This strategic move positions Gopal Snacks for further growth and expansion. The company operates three manufacturing facilities in Nagpur, Maharashtra; Rajkot, and Modasa, Gujarat, along with three ancillary units producing key ingredients like besan and spices.
Gopal Snacks' unique advantage lies in its integrated manufacturing process, reducing reliance on suppliers and lowering production costs. The company delivers its products directly to retailers through 617 distributors, with plans to expand this network further.
The IPO, managed by Intensive Fiscal Services, Axis Capital, and JM Financial, has reserved half of the issue size for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors. Interested investors can bid for a minimum of 37 equity shares, with subsequent bids in increments of 37 shares.
Upon successful listing, Gopal Snacks' equity shares will be traded on the BSE and NSE, marking a significant milestone for the company's growth trajectory in the FMCG market.
