Gopal Snacks Limited

Gopal Snacks Limited

listed
₹14,097Min. investment
  1. Bid start
    6 Mar
  2. Bid end
    11 Mar
  3. Allotment
    8 Mar
  4. Release of funds
    13 Mar
  5. Demat transfer
    12 Mar
  6. Listing
    14 Mar

About Gopal Snacks Limited

Price range₹381 – ₹401
IPO type
Regular
Lot size37 shares
Issue size₹650Cr

Checklist

Risk analysis
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About  Gopal Snacks Limited

Incorporated in 2009, Gopal Snacks Limited is a fast moving consumer goods (FMCG) company in India offering ethnic and western snacks, including namkeen, gathiya, wafers and other products under the ‘Gopal’ brand name across ten states and two union territories.
As per reports, the company holds a market share of 20% in ethnic savouries, ~8% in western snacks and ~6% in the papad in Gujarat as of FY23, including organised and unorganised sectors. Its portfolio includes 84 products with 276 SKUs as of 30 September 2023 across various product categories addressing various tastes and preferences.
  It operates six manufacturing facilities across Gujarat and Maharashtra with an aggregate annual installed capacity of 404,728.76 MT. Besides this, Gopal Snacks also engages with third party manufacturers on a need basis to produce products such as chikki, nachos, noodles, rusk, soan papdi.
T he end products are delivered through its distribution network, comprising three depots, 617 distributors, a sales and marketing team of 741 employees, and a fleet of 263 logistics vehicles as of Q2 FY24.  Between FY21 and FY23, the company saw a CAGR rise of over 7% in its revenue from operations and 74% in its profit. Between Q2 FY23 and Q2 FY24, it saw a CAGR drop of 3% in its revenue from operations and a CAGR rise of 6% in its profit. Moreover, the Indian market for savoury snacks is projected to grow at a CAGR of approximately 11% by FY27, which could benefit the company.
And now, Gopal Snacks Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale and the money raised will be received by the selling shareholders. Its shares will be listed on the NSE and BSE.
Here are key details about the Gopal Snacks Limited IPO:
Company NameGopal Snacks  Limited Company TypePrivate
Company Established On2009

Financial snapshot

ParticularsFY21FY22FY23Q2FY24
Revenue₹ 1128  crore₹ 1,352  crore₹ 1,394 crore₹ 676 crore
Net Profit/Loss₹ 21.1 crore₹ 41.5 crore₹ 112 crore₹ 55.5 crore

Here’s a quick look at Gopal Snacks Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

  1. Gopal Snacks has a strong position in the organised market for savoury snacks, which is estimated to have accounted for 57% of the Indian snack food market in FY23. 
  2. Diversified product portfolio, including FMCG products such as papad, spices, besan or gram flour, chikki, nachos, noodles, rusk, soan papdi and washing bar. 
  3. Positioned to benefit as the Gathiya market is expected to grow at a CAGR of 11% during FY23 to FY27 with gaining popularity in Uttar Pradesh, Maharashtra, Rajasthan and Madhya Pradesh, along with Gujarat. 
  4. Strategically located manufacturing facilities so that they are close to the raw material production bases as well as its core markets - Gujarat and Maharashtra. 
  5. Cost and operational efficiencies are due to vertically integrated business operations, machine customising capabilities, customised containers for transportation, and in-house cold storage with an annual installed capacity of 40,000 MT as of Q2 FY24. 
  6. Products are gaining recognition in the international market as they are exported to 37 countries, including Australia, Kuwait, Saudi Arabia, UAE and USA through direct exports and sold through the general trade channel as of 30 September 2023. 
  7. Long standing relationship with distributors as 24% of its total distributors in Gujarat have been associated with the company for 10+ years as of Q2 FY24. 
  8. Track record of financial performance with growing EBITDA margins of 5%, 7%, 14%, and 13% in FY21, FY22, FY23, and Q2 FY24.

Risks and threats

  1. Product sales concentrated in Gujarat, accounting for 79% and 76% of its revenue from operations in FY23 and Q2 FY24, respectively. 
  2. Operations are subject to contamination-related risks, which could significantly affect its brand reputation.
  3. The company saw a decline in its capacity utilisation from 40% in FY21 to 32% in FY22 to 27% in FY23, which can negatively impact its financial condition. 
  4. Business is subject to seasonality leading to lower revenues during festive seasons and summer breaks in schools. 
  5. Operates in a competitive market and faces competition from Bikaji Foods, Haldiram, Bikanervala Foods, Prataap Snacks, Balaji Wafers, PepsiCo India Holdings, and DFM Foods. 
  6. Non-compliance with food safety and other laws in India, as well as the 37 countries it exports its products to as of Q2 FY24 could have severe implications for its business.

Gopal Snacks Limited IPO details

**** Gopal Snacks Limited IPO date

According to the offer document filed by the company with the SEBI, the Gopal Snacks IPO’s opening date – in other words, the Gopal Snacks IPO launch date – will be 6th March 2024. The Gopal Snacks IPO closing date is 11th March 2024. After this, investors will be updated about the allotment status on 12th March 2024.
Investors, who have been allotted shares, can expect them to be credited to their demat account on 13th March 2024. The Gopal Snacks IPO listing date is 14th March 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.

**** Gopal Snacks Limited IPO Price Band

The IPO is an offer. The Gopal Snacks IPO price band has been set between ₹381 and ₹401 per share. Interested investors can choose a price within this band to apply for the IPO.
The Gopal Snacks IPO listing price will be determined on 14th March 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.
**** Gopal Snacks Limited IPO Lot size
The Gopal Snacks IPO details have been declared. The Gopal Snacks IPO lot size is set at 37 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Gopal Snacks IPO issue size is approx ₹650 crore.

How to pre-apply for the Gopal Snacks Limited IPO?

You can pre-apply for the Gopal Snacks Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.
Follow these steps to pre-apply for the IPO:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover tab, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, look for the ‘Gopal Snacks Limited IPO’ tab and click on it
  5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
  6. Confirm and click on ‘Pre-Apply’
  7. Accept the mandate on your UPI app

How to apply for the Gopal Snacks Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Gopal Snacks Limited IPO, here we are listing out the steps for you.
When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Gopal Snacks Limited IPO on Upstox:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover tab, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, look for the ‘Gopal Snacks Limited IPO’ tab and click on it
  5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
  6. Confirm and click on ‘Apply’
  7. Accept the mandate on your UPI app

How to check the Gopal Snacks Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.
Here’s a step-by-step guide on how to check the Gopal Snacks Limited IPO allotment status:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover page, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, you will find the ‘View all’ option
  5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
  6. In the ‘IPO’ tab, click on ‘My applications’ 
  7. In ‘My applications’, under the History section, your Gopal Snacks Limited IPO allotment status will be mentioned
Check Allotment Status

Open a demat account with Upstox to apply for the Gopal Snacks Limited IPO

To apply for the Gopal Snacks Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.
Here is a step-by-step guide on how to open a demat account with Upstox:
  1. Click here to visit the demat account opening page on the Upstox website. 
  2. Enter your phone number and other essential details to begin opening a demat account.
  3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
  4. Complete the e-verification using the OTP sent to your registered mobile number.
This is all it takes to open a demat account with Upstox. Easy and quick, right?
Open Demat Account

Upstox – trading app to apply for the Gopal Snacks Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.
You can apply for the Gopal Snacks Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.
In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.

Frequently asked questions

How to invest in the IPO?

Investors can apply for the IPO through their Demat account via the stock exchange or through their broker.

What is the issue size of Gopal Snacks Limited ?

The issue size of the Gopal Snacks Limited is 650 Cr.

What is 'pre-apply' for Gopal Snacks Limited ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will Gopal Snacks Limited shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.