To repay a debt incurred by Bipin Hadvani, promoter of Rajkot-based snack maker Gopal Snacks Pvt Ltd in a “personal capacity”, the company will raise ₹650 crore through an initial public offering that opens on March 6.
“Bipinbhai had bought his brother’s shares in November 2022. We had then taken a loan of Rs 540 crore. During the pre-IPO in October 2023, we had made a partial payment of ₹160 Crore along with interest. Now we plan to clear the remaining debt with the IPO proceeds,” Gopal Snacks Ltd CFO Mukesh Shah told Businessline on the sidelines of a media interaction in Ahmedabad on Saturday.
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“The Gopal Snacks company is completely debt-free. “The loan has been taken from a financial institution in the personal capacity of the promoter,” Shah said, adding that out of the Rs 650 crore raised through the IPO, Rs 520 crore will go towards retiring this debt. Shah also said the company does not require funds for new capital investments and will not receive any proceeds from the offering.
The IPO will be a pure offer for sale where equity shares worth a total of ₹650 crore will be sold to shareholders.
Gopal Snacks is a ₹1,400-crore traditional Gujarati food company. The company has six manufacturing facilities including in Rajkot, Modasa and Nagpur. Under the brand 'Gopal', it offers a wide range of products including Namkeen, Gathiya, Waffles, Snack Pellets and other products.
The IPO will close on March 11th.
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