Gopal Snacks
Book Building issueMainboard₹650 Cr issue
-12.72%
Listing gain over issue price
Issue size
₹650 Cr
1 lot at cut-off
₹14,837
Lot size
37shares
Open
06 Mar 2024
Close
11 Mar 2024
Allotment
12 Mar 2024
Listing
14 Mar 2024
Listing performance
Issue price
₹401
Listed at
₹350
Listing-day close
₹362.70
Latest price
₹242.95
Close on 23 Oct 2026
Listing gain
-12.72%
Return since issue
-39.41%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 06 Mar 2024 – 11 Mar 2024
- Listing date
- 14 Mar 2024
- Face value
- ₹1 per share
- Issue price
- ₹401 per share
- Lot size
- 37 shares
- Issue type
- Book Building issue
- Total issue size
- ₹650 Cr
- Market cap at offer price
- ₹4,997 Cr
- Promoter holding
- 93.50% → 81.49% pre-issue → post-issue
- ISIN
- INE0L9R01028
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Intensive Fiscal Services Pvt.Ltd.
- Registered office
- Plot Nos.G2322, G2323 and G2324, GIDC Metoda, Taluka, Lodhika, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 48,36,657 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 37 shares per lot, in multiples, at ₹401
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 37 | ₹14,837 |
| Retail (max) | 13 | 481 | ₹1,92,881 |
| S-HNI (min) | 14 | 518 | ₹2,07,718 |
| S-HNI (max) | 67 | 2,479 | ₹9,94,079 |
| B-HNI (min) | 68 | 2,516 | ₹10,08,916 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
48,36,657
Anchor portion
₹194 Cr
at ₹401 per share
Valuation and performance
Valuation at offer price
₹401 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 9.02 | 8.92 |
| P/E (×) | 44.46 | 44.96 |
| Price to book (×) | 14.43 | — |
| Market cap | — | ₹4,997 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 16.05%
- ROCE
- 20.83%
- Debt / equity
- 0.08
- PAT margin
- 8.22%
- NAV per share
- ₹27.78
- Price to book
- 14.43
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Gopal Snacks
Gopal Snacks Limited was initially formed as a partnership firm 'Gopal Gruh Udhyog' in Rajkot, India on April 1, 1999, and was converted into a private limited company in December 2009, then into a public limited company in March 2023. The company operates six manufacturing facilities across India—three primary facilities in Nagpur (Maharashtra), Rajkot (Gujarat), and Modasa (Gujarat) focused on finished products, and three ancillary facilities in Rajkot and Modasa focused on producing raw materials. As of September 30, 2023, the company's product portfolio comprises 84 products with 276 SKUs across various categories. The company generates revenue primarily from the sale of namkeen, gathiya, and snack pellets, which accounted for 77.89% of revenue from operations in the six months ended September 30, 2023. Revenue from operations in Fiscal 2023 was ₹13,946.53 million. The company's revenue is highly concentrated in Gujarat, accounting for 76.49% of revenue from operations in the six months ended September 30, 2023.
Company Analysis
from RHPGopal Snacks Limited is a fast-moving consumer goods company in India specializing in savoury snacks including ethnic snacks (namkeen, gathiya) and western snacks (wafers, snack pellets), along with other FMCG products like papad, spices, and gram flour, with major presence in Gujarat.
Gopal Snacks Limited was initially formed as a partnership firm 'Gopal Gruh Udhyog' in Rajkot, India on April 1, 1999, and was converted into a private limited company in December 2009, then into a public limited company in March 2023. The company operates six manufacturing facilities across India—three primary facilities in Nagpur (Maharashtra), Rajkot (Gujarat), and Modasa (Gujarat) focused on finished products, and three ancillary facilities in Rajkot and Modasa focused on producing raw materials. As of September 30, 2023, the company's product portfolio comprises 84 products with 276 SKUs across various categories. The company generates revenue primarily from the sale of namkeen, gathiya, and snack pellets, which accounted for 77.89% of revenue from operations in the six months ended September 30, 2023. Revenue from operations in Fiscal 2023 was ₹13,946.53 million. The company's revenue is highly concentrated in Gujarat, accounting for 76.49% of revenue from operations in the six months ended September 30, 2023.
Fast Moving Consumer Goods (FMCG)Savoury Snacks ManufacturingPackaged FoodSpices and Condiments
Objects of the Issue
- Offer for Sale of Equity Shares and achieve benefits of listing the Equity Shares on the Stock Exchanges ₹6,500 million (Offer for Sale) - No proceeds to Company p.26
- Offer for Sale - carrying out the Offer for Sale of up to 16,218,612 Equity Shares by the Selling Shareholders ₹6,500 million p.126
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.126
Issue Structure
- Total Issue
- Up to ₹6,500 million
- Fresh Issue
- Nil - This is purely an Offer for Sale
- Offer for Sale
- Up to 16,218,612 Equity Shares aggregating up to ₹6,500 million (100% Book Built Offer)
- Price Band
- Floor Price: ₹381 per Equity Share; Cap Price: ₹401 per Equity Share; Offer Price: ₹401 per Equity Share
- Lot Size
- 37 Equity Shares (Bid Lot)
- Face Value
- ₹1 per Equity Share
Business Model
The company earns revenue through the manufacture and sale of snack products. Revenue from operations derives primarily from the sale of ethnic snacks (namkeen and gathiya accounting for approximately 56% of revenue in H1 FY2024), western snacks (snack pellets, wafers, extruded snacks accounting for approximately 31%), and other products including papad, besan (gram flour), spices, noodles, rusk, and soan papdi (accounting for approximately 13%). The company distributes its products primarily through traditional retail channels in Gujarat, with minimal presence in e-commerce and modern trade channels.
Business Segments
Manufacture and sale of traditional Indian snacks including namkeen and gathiya
Manufacture and sale of western-style snacks including snack pellets, wafers, and extruded snacks
Manufacture and sale of other FMCG products including papad, spices, gram flour (besan), noodles, rusk and soan papdi
Manufactures and sells gathiya, namkeen, western snacks, wafers
Manufactures and sells papad and spices
Manufactures besan and other flour preparations
Manufacture and sale of gathiya, an ethnic savoury snack
Manufacture and sale of papad
Manufacture and sale of western snacks such as wafers and corn snacks
Manufacture and sale of snack pellets
Manufactures gathiya, a traditional crispy snack made primarily using besan (gram flour), edible oil, asafoetida, ajwain, black pepper, soda and salt. Offers 8 varieties including vanela gathiya, fulvadi gathiya, tikha gathiya, papdi gathiya, tikha papdi gathiya, bhavnagari gathiya, champakali gathiya and nylon gathiya.
Manufactures traditional Indian savory snacks available in variety of forms including crunchy, savory, spicy and sweet. Products include bhujia, sev, murmura, chivda, dal moth, moong dal and peanuts. Offers 31 products classified under namkeen category.
Manufactures ready-to-eat snack pellets in 12 varieties of formats including mini rings, mini cups, plane, plain ponga, alphabet, rugby balls, sticks, chowkadi, masala cup, tomato cup, masala ponga, and hot wheel. Operates in-house manufacturing unit for raw snack pellets with installed production capacity of 35,960 tons as of September 30, 2023.
Manufactures wafers under the 'Cristos' brand in 8 flavours. Processing involves grading, destoning, peeling potatoes, slicing, washing, deep-frying, seasoning and packing.
Manufactures papad, a traditional thin, crisp and disc-shaped Indian snack made from lentils and chickpeas. Offers 4 varieties: moong papad, coin papad, punjabi papad and udad papad.
Manufactures besan or gram flour made primarily from chickpeas through soaking, grinding, and quality-based crushing processes. Key ingredient for namkeen and gathiya products; also sold as standalone product.
Manufactures range of spices including chilli powder, Kashmiri chilli powder, turmeric powder, coriander cumin powder, coriander powder and cumin powder. Primarily used for captive consumption in manufacturing other products.
Savory snack products including traditional Indian namkeen varieties
Potato wafers and cereal-based wafer products
Manufacture and sale of ready-to-eat namkeens, snack pellets, corn products, potato chips, papad, besan, spices and other food products for domestic market
Manufacture and sale of ready-to-eat namkeens, snack pellets, corn products, potato chips, papad, besan, spices and other food products for international markets
Purchase and resale of traded goods, by-products and wastage materials
Manufacture of gathiya (traditional crispy snack made with besan/gram flour) and namkeen (traditional Indian snack in various forms including crunchy, savoury, spicy and sweet). As of September 30, 2023, the company manufactured eight varieties of gathiya and 31 snacks classified under the namkeen category.
Manufacture of snack pellets, wafers, and extruded snacks. As of September 30, 2023, the company had 12 products classified under snack pellets, 8 under wafers, and 5 under extruded snacks.
Manufacture of papad (traditional thin, crisp disc-shaped Indian snack made from lentils and spices), besan/gram flour, spices, chikki, nachos, noodles, rusk, soan papdi, and washing bar. The company had 16 products classified under other products as of September 30, 2023.
SWOT Analysis
Strengths
- • Established FMCG brand with diversified product portfolio in savoury and specialty snacks(p.25)
- • Multi-facility manufacturing infrastructure across key regions(p.25)
- • Strong revenue growth trajectory over recent years(p.26)
- • Improved profitability with PAT growing significantly(p.26)
- • Reduced financial leverage with declining total borrowings(p.26)
- • Strong revenue and profitability growth trajectory(p.72)
- • Dominant brand presence and market position in core market(p.66)
- • Significant expansion in EBITDA margins(p.72)
- • Improved PAT margins and profitability(p.48)
- • Substantial debt reduction and improved financial position(p.49)
- • Fourth largest ethnic savouries brand with significant Gujarat presence(p.136)
- • Largest cold storage capacity in Indian snacks industry(p.136)
- • Strong financial performance with high return on equity(p.136)
- • Vertically integrated operations with advanced business model(p.129)
- • Experienced promoter and management team(p.129)
- • Established distribution network with 617 distributors across 10 states and 2 Union Territories, with 69 long-standing partners in Gujarat (10+ years) contributing 26.62% of FY2023 revenue(p.226)
- • Long-standing supplier relationships providing supply security and logistical flexibility, with reputation for multiple suppliers reducing concentration risk(p.228)
- • Distribution network and market knowledge serve as significant barriers to entry requiring substantial time and resources(p.226)
- • Diverse product portfolio including ethnic, western snacks and fast moving consumer foods catering to varied consumer tastes(p.230)
- • Quality control team and infrastructure supporting product development and compliance with FSSAI regulations(p.229)
- • Adoption of sustainable energy resources including solar panels at primary facilities and operational 2 MW wind turbine generator(p.228)
- • 24 registered trademarks in India including key brands 'GOPAL', 'gopal namkeen', 'gopal wafers' and 'Sab Bhumi Gopal Ki'(p.231)
- • Integrated backward integration through engineering/fabrication facility and ancillary facilities for besan, raw snacks pellets and spices production(p.242)
- • Established manufacturing operations with significant asset base(p.291)
- • Strong profitability trajectory with growing profits(p.288)
- • Improved revenue from operations showing business growth(p.324)
- • Substantial reduction in debt levels and improved leverage(p.339)
- • Strong cash generation from operations(p.289)
- • Established brand presence with 24 years of market presence(p.357)
- • Diversified product portfolio across ethnic and western snacks(p.355)
- • Strong distribution network with established long-term relationships(p.356)
- • Advanced manufacturing facilities with modern technology(p.349)
- • Strong recent financial performance with significant profit growth(p.374)
- • Diversified trademark portfolio with significant geographic reach(p.399)
- • Robust intellectual property filing activity and protection strategy(p.399)
- • Strong copyright portfolio protecting creative works(p.401)
- • Consistent operating profit growth and positive financial trajectory(p.407)
- • Substantial growth in net tangible assets(p.407)
- • Strong net worth position across all reporting periods(p.407)
Weaknesses
- • Extreme geographic concentration of sales in single state creates operational vulnerability(p.39)
- • High dependency on limited product portfolio for revenue generation(p.36)
- • Significant under-utilization of manufacturing capacity(p.43)
- • Multiple regulatory and compliance violations with regulatory authorities(p.44)
- • Significant contingent tax liabilities pending resolution(p.46)
- • No proceeds to company from IPO offering limiting growth capital(p.40)
- • Negligible presence in high-growth modern retail and e-commerce channels(p.45)
- • Pending litigation and contingent tax liabilities(p.47)
- • Significant GST liability exposure related to fried fryums(p.50)
- • Concentration on small pack SKUs creates pricing vulnerability(p.62)
- • Significant promoter and management conflicts of interest(p.49)
- • Promoter pledge and loan default risk affecting control(p.60)
- • High dependence on raw material sourcing from related party(p.57)
- • Missing historical corporate records(p.68)
- • Environmental compliance delay for ancillary facility(p.66)
- • Significant cash cost of materials as percentage of revenue(p.57)
- • Unable to locate certain historical corporate records(p.68)
- • High promoter concentration and locked-in equity(p.112)
- • Significant borrowing obligations requiring repayment(p.93)
- • High raw material cost as percentage of revenue (71.62% in FY2023), primarily driven by edible oil costs (22.60%)(p.227)
- • Material dependence on General Trade channel which accounted for 99.87% of FY2023 revenue, with limited modern trade and e-commerce penetration(p.226)
- • Low capacity utilization at Rajkot Ancillary Facility (papad) at 40.36% as of September 2023(p.225)
- • Delay in obtaining consents for Modasa ancillary facility under environmental laws, creating potential operational risk(p.225)
- • Some manufacturing facilities and registered office have only leasehold rights on land allotted for 99 years, creating renewal risk(p.233)
- • Trademark 'Gopal' restricted from use in milk products, butter, ghee, cheese, edible oils, bakery and certain ready-to-eat food categories(p.231)
- • Concentration of shareholding with promoters limiting public participation(p.317)
- • Dependence on raw material suppliers controlled by promoters(p.279)
- • Related party transactions with promoter-controlled entities(p.279)
- • Personal guarantees by promoters on company debt obligations(p.279)
- • Significant contingent tax liabilities under dispute(p.327)
- • Significant dependence on few key raw materials subject to price volatility(p.347)
- • Concentration in specific geographic markets(p.357)
- • Government incentive schemes critical to profitability at specific facilities(p.357)
- • Declining capacity utilization across product lines(p.350)
- • Significant related party transactions particularly for raw material procurement(p.381)
- • Multiple pending fire safety approvals across manufacturing facilities(p.398)
- • Critical food safety license expiring imminently(p.398)
- • Near-term metrology certification renewals required(p.398)
- • Trademark applications facing objections and oppositions(p.400)
- • Limited net operating capital base(p.407)
Opportunities
- • Significant growth potential in organized packaged snacks market(p.25)
- • Expansion into adjacent categories within growing FMCG snacks sector(p.25)
- • Increasing health awareness driving demand for nutritious snacking alternatives(p.38)
- • Opportunity to expand beyond core Gujarat market into new geographies(p.25)
- • Geographic expansion into focus markets(p.74)
- • International export market development(p.50)
- • Expansion of modern trade channels and organized retail(p.76)
- • New product development and portfolio expansion(p.73)
- • Capacity utilization improvement at existing facilities(p.72)
- • Growing packaged food market with 10% CAGR through 2027(p.154)
- • Expansion in organized retail and e-commerce channels(p.154)
- • Growing demand for healthy and packaged snacks post-COVID(p.152)
- • Snack industry holds 32% market share in packaged food with high untapped potential(p.155)
- • Rising middle-class population and disposable income growth(p.150)
- • India's demographic dividend with young working-age population(p.147)
- • Tier-2 and Tier-3 city expansion opportunity(p.146)
- • Expansion of targeted marketing initiatives including celebrity endorsements, digital marketing, influencer collaboration and e-commerce focus(p.230)
- • Government support through PLI scheme for food processing industry with ₹109,000 million committed over 6 years from FY2022(p.236)
- • Growth through product innovation with successful launches of ponga, katak-matak, vanilla balls, papad chivda, ratlami sev and bikaneri bhujia(p.229)
- • Expansion of modern trade and e-commerce channels currently representing only 0.13% of FY2023 revenue(p.226)
- • Growth potential in underserved states with limited distributor presence (Telangana 2, Uttarakhand 1, Delhi NCR 1 distributor)(p.226)
- • Government incentive schemes including PSI Scheme (Maharashtra) and ITI Scheme (Gujarat) providing SGST reimbursements up to 110% and 90% respectively(p.229)
- • Growth in organized snacking sector and ready-to-eat products market(p.291)
- • Expansion of product portfolio and production capacity(p.309)
- • International market penetration through export growth(p.324)
- • Leverage improved financial position for strategic investments(p.339)
- • Subsidy income and government support for manufacturing(p.324)
- • Growing organized segment in Indian snacks market with favorable CAGR(p.355)
- • Large underpenetrated market in states of operation with expansion opportunities(p.356)
- • Growing demand for organized ethnic namkeen with post-COVID hygiene focus(p.356)
- • Strong western snacks market with double-digit growth forecast(p.357)
- • Market preference for low-priced SKUs providing volume growth avenue(p.356)
- • Expansion of trademark portfolio to 72 additional applications in various categories(p.399)
- • International trademark expansion beyond current four jurisdictions(p.401)
- • Further copyright registration to protect additional artistic works(p.403)
- • Public market access through listing on major stock exchanges(p.406)
Threats
- • Intense competitive pressure from organized and unorganized sector players(p.46)
- • Specific competitor threat from Gokul Snacks established by family member in core market(p.46)
- • Business exposed to food safety and contamination risks with regulatory consequences(p.39)
- • Inherent seasonal demand fluctuations affecting revenue consistency(p.46)
- • Evolving regulatory framework on nutrition labelling and product standards(p.38)
- • Exposure to consumer preference shifts away from traditional high-calorie snacks(p.38)
- • Vulnerability to supply chain disruptions and raw material availability risks(p.43)
- • Intense competitive pressure and low market share in organized segment(p.46)
- • Raw material price volatility and supply disruptions(p.57)
- • Regulatory changes affecting packaging and environmental compliance(p.50)
- • Competitor brand Gokul Snacks using similar products(p.58)
- • Food safety and quality compliance risk exposure(p.61)
- • Inflation and inability to pass costs to consumers(p.82)
- • Geographic concentration risk in Gujarat operations(p.66)
- • High inventory holding and expiry risk(p.73)
- • Distributor concentration risk and dependency(p.63)
- • Macroeconomic and currency risks in India(p.83)
- • Elevated inflation constraining lower-income household budgets(p.150)
- • Unorganized sector dominance with 81% market share in packaged food(p.155)
- • Global growth slowdown impacting domestic demand(p.141)
- • Intense competition from domestic and multinational companies including Balaji Wafers, Bikaji Foods, Haldiram, PepsiCo India and Prataap Snacks(p.230)
- • Fierce local competition in Gujarat from players such as Gokul Snacks in one of India's most lucrative snacks markets(p.231)
- • Raw material price fluctuations and supply interruptions could adversely affect business, with materials accounting for 71.62% of FY2023 revenue(p.228)
- • Insurance coverage may not be adequate or company may incur uninsured losses exceeding coverage(p.232)
- • Technology failures could disrupt operations and adversely affect business results(p.230)
- • Risk of inability to protect intellectual property from third party infringement(p.231)
- • Significant GST audit disputes and potential tax liabilities(p.327)
- • Raw material cost inflation and supply chain volatility(p.324)
- • Exposure to interest rate fluctuation on floating rate debt(p.338)
- • Competition from organized and unorganized snacking industry players(p.291)
- • Dependence on working capital credit lines which are repayable on demand(p.321)
- • Volatility in raw material prices particularly edible oils(p.356)
- • Strong competitive environment in organized snacks sector(p.383)
- • Seasonality impacting sales volumes and revenue(p.383)
- • Regulatory risks related to environmental and food safety compliance(p.353)
- • Dependence on government incentive schemes subject to withdrawal or conditions(p.357)
- • Risk of IP infringement and inability to protect intellectual property(p.403)
- • Regulatory dependency on multiple state pollution control boards(p.398)
- • Exposure to changes in food safety and metrology regulations(p.398)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Bipinbhai Vithalbhai Hadvani | Promoter / Promoter Selling Shareholder | 56.62% | — |
| Dakshaben Bipinbhai Hadvani | Promoter | 12.15% | — |
| Gopal Agriproducts Private Limited | Promoter / Promoter Selling Shareholder | 22.23% | — |
| Bipinbhai Vithalbhai Hadvani | Promoter/Chairman and Managing Director | — | — |
| Dakshaben Bipinbhai Hadvani | Promoter/Executive Director | — | — |
| Gopal Agriproducts Private Limited | Corporate Promoter | — | — |
| Bipinbhai Vithalbhai Hadvani | Promoter | 56.62% | 55.02% |
| Dakshaben Bipinbhai Hadvani | Promoter | 12.15% | 12.15% |
| Gopal Agriproducts Private Limited | Promoter | 22.23% | 11.82% |
| Raj Bipinbhai Hadvani | Promoter Group | 2.50% | 2.50% |
| Bipinbhai Vithalbhai Hadvani | Promoter | — | — |
| Dakshaben Bipinbhai Hadvani | Promoter | — | — |
| Bipinbhai Vithalbhai Hadvani | Promoter | 56.62% | — |
| Dakshaben Bipinbhai Hadvani | Promoter | 12.15% | — |
| Gopal Agriproducts Private Limited | Promoter | 22.23% | — |
| Bipinbhai Vithalbhai Hadvani | Promoter | 43.77% | 56.62% |
| Dakshaben Bipinbhai Hadvani | Promoter | 12.15% | 12.15% |
| Gopal Agriproducts Private Limited | Promoter Group | — | 26.23% |
| Bipinbhai Vithalbhai Hadvani | Promoter | — | — |
| Bipinbhai Vithalbhai Hadvani | Selling Shareholder | — | — |
| Gopal Agriproducts | Selling Shareholder | — | — |
| Harsh Sureshkumar Shah | Selling Shareholder | — | — |
| Bipinbhai Vithalbhai Hadvani | Promoter | — | — |
| Gopal Agriproducts Private Limited | Promoter Group | — | — |
| Harsh Sureshkumar Shah | Promoter | — | — |
Leadership
Bipinbhai Vithalbhai Hadvani · Chairman and Managing Director
Dakshaben Bipinbhai Hadvani · Executive Director
Raj Bipinbhai Hadvani · CEO / Whole-time Director
Mukesh Kumar Shah · CFO
Mayur Popatbhai Gangani · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Gopal Snacks IPO FAQs
What is the lot size of Gopal Snacks IPO?
The minimum lot size of Gopal Snacks IPO is 37 shares. One lot costs ₹14,837 at the cut-off price.
When does Gopal Snacks IPO open and close?
Gopal Snacks IPO opened for subscription on 06 Mar 2024 and closed on 11 Mar 2024.
What is the listing date of Gopal Snacks IPO?
Gopal Snacks IPO listed on 14 Mar 2024.