Gopal Snacks Limited

Gopal Snacks Limited –IPO DETAILS 

Company Overview 

Established in 1999, Gopal Snacks Limited is an FMCG enterprise specializing in a wide range of ethnic and Western snack items, along with various other products both domestically in India and on the international market. The company boasts an extensive portfolio of snack offerings, encompassing traditional treats like namkeen and gathiya, as well as contemporary favorites such as wafers, extruded snacks, and snack pellets. Additionally, they provide a diverse array of fast-moving consumer goods, including papad, spices, gram flour (besan), noodles, rusk, and soan papdi. As of November 2023, the company boasted 276 SKUs, with 84 distinct products spanning different categories, catering to a broad spectrum of tastes and preferences.  

By September 2023, Gopal Snacks Limited had successfully distributed its products to over 523 locations across 10 states and two Union Territories. Supporting its sales and marketing efforts, the company's team comprised 741 employees as of September 30, 2023. This team was bolstered by a robust distribution network consisting of three depots and 617 distributors. Furthermore, the company maintained a fleet of 263 logistics vehicles to facilitate its expansive distribution operations.  With six manufacturing units in operation, three of which are primary facilities and three ancillary, Gopal Snacks Limited boasts a considerable production capacity. The primary manufacturing units are strategically located in Nagpur, Maharashtra; Rajkot, Gujarat; and Modasa, Gujarat. Ancillary units are situated in Rajkot, Gujarat, and Modasa, Gujarat. As of September 30, 2023, these facilities collectively possessed an annual installed capacity of 404,728.76 MT.   

Objective of the IPO 

Here are a few quick reasons why the company is going public:  

1. The proceeds from the Offer, referred to as the "Offer Proceeds," will not be received by the Company. Instead, they will be directed entirely to the Selling Shareholders. The distribution of these Offer Proceeds among the Selling Shareholders will be proportional to the number of Offered Shares sold by each respective Selling Shareholder as part of the Offer. 

Company Financials 

Key Performance Indicator 

Pros 

1. Established as a key contender in the Indian snack food industry, particularly renowned for its expertise in ethnic savories, with a notable presence in Gujarat, solidifying its brand reputation through its commitment to quality and a wide range of offerings. 

2. With a varied product portfolio, the company is well-positioned to capitalize on the rapidly growing Indian snacks market. 

3. Recognized as a premier gathiya manufacturer in India, the company is leveraging the surging demand for gathiya snacks to pursue growth opportunities within this sector. 

4.  The strategically located manufacturing facilities are designed to optimize operations and improve efficiency. 

5. Operating as a vertically integrated business, the company ensures exceptional product quality and implements cost-effective processes to maintain competitiveness. 

Cons 

1. The company has been issued eight notices under the Food Safety and Standards Act, 2006. 

2. Due to the seasonal nature of its operations, the company anticipates lower revenues during non-festive periods and school summer breaks, which could potentially affect its overall performance. 

3. Given the competitive landscape, any escalation in competition may negatively impact the company's position in the market. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”