IPO Dates:
The subscription for the Gopal Namkeen IPO opens on March 6, 2024, and closes on March 11, 2024.
Price Band: The price band for the IPO is set at ₹381 to ₹401 per share.
Issue Size: The IPO consists of 16,209,476 equity shares, aggregating up to ₹650.00 Crores. It is entirely an offer for sale of shares.
Minimum Lot Size: Retail investors can apply for a minimum of 37 shares.
Listing Date: The shares are expected to list on both BSE and NSE on Thursday, March 14, 2024.
Book Running Lead Managers: Intensive Fiscal Services Private Limited, Axis Capital Limited, and JM Financial Limited.
Registrar: Link Intime India Private Ltd.
Remember, this IPO provides an opportunity to invest in a company that deals in ethnic and Western snacks. If you’re interested, mark your calendar for the subscription window! ๐๐
Business Background
Gopal Snacks Limited, also known as Gopal Namkeen, is a well-established Indian company specializing in the production of savory snacks. Here are some key points about their business background:
Founding and Legacy:
Gopal Snacks was founded in 1974 by Mr. Gopalji Gupta in Rajkot, Gujarat, India.
Over the years, the company has built a strong reputation for its high-quality and delicious namkeens (savory snacks).
Product Range:
Gopal Namkeen offers a wide variety of traditional and innovative snacks, including:
Sev: A crispy, spicy snack made from chickpea flour.
Gathiya: Another popular chickpea flour-based snack, available in various flavors.
Farsan: Assorted savory items like dhokla, khandvi, and fafda.
Chips: Potato chips, banana chips, and other regional specialties.
Chivda: A mixture of flattened rice, nuts, and spices.
Bhakarwadi: A spiral-shaped snack with a sweet and spicy filling.
Khakhra: Thin, roasted wheat crisps.
And many more…
Quality Assurance:
Gopal Namkeen emphasizes quality control and hygiene standards.
They use fresh ingredients and modern manufacturing processes to ensure consistent taste and texture.
Market Presence:
The brand has a strong presence in Gujarat and other parts of India.
Their products are widely distributed through retail stores, supermarkets, and online platforms.
IPO and Expansion:
The upcoming IPO aims to raise capital for expansion, marketing, and strengthening the company’s distribution network.
Investors have an opportunity to participate in the growth story of this well-loved snack brand.
Remember, investing in an IPO involves risks, so it’s essential to conduct thorough research and consider your investment goals before participating. ๐๐
Financial Performance
Certainly! Let's delve into the financial performance of **Gopal Snacks Limited** based on available data:
1. **Revenue from Operations**:
- For the six months ending in **September 2023**, Gopal Snacks reported **revenue from operations** of **₹676 crore**.
- This figure represents a **3% year-on-year decline** compared to the same period in the previous year.
2. **Profit After Tax (PAT)**:
- During the same six-month period, the company's **profit after tax** increased marginally to **₹55.5 crore**.
- In the previous year, the PAT stood at **₹51.9 crore**.
3. **Growth Trajectory**:
- Despite the revenue dip, Gopal Snacks has exhibited remarkable financial growth over the years.
- From **Fiscal 2021** to **Fiscal 2023**, their revenue from operations surged at a **Compound Annual Growth Rate (CAGR) of 11.15%**, reaching **₹1,394.65 crore**.
- The profit witnessed an extraordinary CAGR of **130.65%**, escalating from **₹21.12 crore** to **₹112.37 crore** during the same period.
In summary, while the recent six-month performance showed a slight decline in revenue, the company's overall trajectory indicates positive growth. Investors considering the **Gopal Snacks IPO** should carefully evaluate these financial metrics before making investment decisions. ๐๐
Factor Affecting
Certainly! The profitability of **Gopal Snacks Limited** can be influenced by several factors. Let's explore some key aspects:
1. **Raw Material Costs**:
- The prices of ingredients and raw materials used in snack production directly impact profitability.
- Fluctuations in commodity prices (such as pulses, spices, and oils) can affect the company's margins.
2. **Production Efficiency**:
- Efficient manufacturing processes lead to cost savings.
- Streamlined production lines, reduced wastage, and optimal utilization of resources contribute to profitability.
3. **Market Demand and Competition**:
- Consumer preferences and market trends influence sales.
- Intense competition from other snack manufacturers can affect pricing and market share.
4. **Distribution Network**:
- A robust distribution network ensures wider reach and better sales.
- Efficient logistics and distribution channels impact overall profitability.
5. **Brand Reputation and Marketing**:
- Positive brand perception drives customer loyalty.
- Effective marketing strategies, advertising, and brand-building efforts contribute to sales growth.
6. **Quality Control and Hygiene**:
- Maintaining consistent product quality is crucial.
- Adherence to hygiene standards prevents product recalls and reputational damage.
7. **Economies of Scale**:
- As production volume increases, costs per unit decrease.
- Expanding operations can lead to better profitability.
8. **Regulatory Compliance and Taxes**:
- Complying with food safety regulations and tax obligations is essential.
- Non-compliance can result in penalties and impact profits.
9. **Seasonal Variations**:
- Snack consumption patterns may vary seasonally (festivals, holidays, etc.).
- Companies need to manage inventory and production accordingly.
10. **Financial Management**:
- Efficient working capital management, debt control, and investment decisions affect profitability.
- Interest payments and financial charges impact the bottom line.
Remember that these factors interact dynamically, and successful management of these aspects contributes to sustained profitability. ๐๐
Source: Conversation with Bing, 7/3/2024
gopal snacks ipo:
Gopal Snacks IPO opens tomorrow. 10 things to know .... https://economictimes.indiatimes.com/markets/ipos/fpos/gopal-snacks-ipo-opens-tomorrow-10-things-to-know-before-subscribing-to-the-issue/articleshow/108236811.cms.