Gopal Snacks taps 360 One Asset, others for pre-IPO funds

Mumbai: 360 One Asset, Axis Alternative Investment Fund and White Oak Capital Management have jointly picked up a secondary stake in Gujarat-based Gopal Snacks ahead of the company’s planned initial public offering in 2024, two persons with knowledge of the deal said, asking to remain anonymous.

The deal size for this pre-IPO transaction is around ₹100 crore to ₹200 crore and the proceeds will be used to ‘meet obligations’ related to a loan taken by the founders last year, the persons cited above said.

In December 2022, Mint reported that the founder Bipin Hadvani raised a debt of ₹490 crore from JM Financial to buy out his younger brother’s stake in the company.

360 One Asset and Gopal Snacks confirmed the pre-IPO investment in the company but did not provide additional details.

“Our thesis is based on investing in strong market-leading brands that grow consistently along with profitability. The company has a strong focus on high quality and quantity at the right price and shown consistent growth with high profitability,” Sameer Nath, chief investment officer, head, Private Equity, 360 One Asset said in a statement. Axis and White Oak did not immediately respond to a request for comment on Thursday.

360 One Asset, earlier known as IIFL Private Equity (under IIFL Wealth and Asset Management Ltd), had previously invested in Bikaji Foods from its pre-IPO fund which yielded good returns.

Gopal Snacks also has appointed two merchant banks to prepare for a public listing and is working towards filing a draft red herring prospectus in the coming months, though a listing will depend upon market conditions, the first person cited above added.

“It is aiming to list before March 2024, as the market conditions may become harder after that because of the elections. A 2024 IPO is expected,” the second person added. In a December interview, Hadvani said the company is aiming for a ₹800 crore to ₹1,000 crore public offering.

The proceeds from the IPO will also take care of the balance debt, the people cited above added.

Gopal Snacks reported revenues of around ₹1,400 crore in FY23 and a profit after tax of around ₹113 crore, one of the people cited above said.

Other snack makers who have gone public in recent times include Bikaji Foods, which went public in November 2022. Prataap Snacks, which sells snacks under Yellow Diamond, listed in October 2017.

The Rajkot-based company was originally started in 1991 as Gopal Gruh Udyog before it changed its name to Gopal Snacks Pvt. Ltd in 2009. It has seven plants across Gujarat, Rajasthan and Maharashtra. Gopal Snacks, which has more than 4,000 employees, makes 10 million packets per day. It operates in 11 states and supplies its products through 750 distributors and over 700,000 retailers, according to its website.