Gopal Snacks Limited’s Initial Public Offering to open on Wednesday, March 06, 2024, sets price band at ₹381 to ₹401 per Equity Share

Mr. Bipinbhai Vithalbhai Hadvani, CMD, Gopal Snacks Limited at their IPO announcement, Mumbai

Mr. Raj Hadvani, CEO & Mr. Bipinbhai Hadvani, CMD of Gopal Snacks Limited at their IPO announcement, Mumbai

GOPAL SNACKS LIMITED 

MUMBAI, MARCH 01, 2024 (TGN): Rajkot-based Gopal Snacks Limited (the “Company") has fixed the price band at ₹381 to ₹401 per Equity Share of face value of ₹1 each for its initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Wednesday, March 06, 2024, for subscription and close on Monday, March 11, 2024. Investors can bid for a minimum of 37 Equity Shares and in multiples of 37 Equity Shares thereafter.

The issue is entirely an offer for sale aggregating up to ₹650 crore.

Gopal Snacks Limited (“Company”) is a fastmoving consumer goods company in offering ethnic snacks, western snacks and other products under our brand ‘Gopal’. It was established as a partnership firm in 1999 and subsequently incorporated as a company in 2009.

 

The company offer a wide variety of savoury products under the brand ‘Gopal’, including ethnic snacks such as namkeen and gathiya, western snacks such as wafers, extruder snacks and snack pellets, along with fast-moving consumer goods that include papad, spices, gram flour or besan, noodles, rusk and soan papdi which are semi-perishable in nature.

 

As of September 30, 2023, product portfolio comprised 84 products with 276 SKUs across its various product categories, thereby addressing a wide variety of tastes and preferences. The company have expanded their footprint across India, with their products being sold over 523 locations in ten States and two Union Territories. The Company’s distribution network comprises of three depots and 617 distributors, complemented by its sales and marketing team comprising 741 employees.

 

The Company operates six manufacturing facilities in India, two of the three of primary manufacturing facilities located in Rajkot and Modasa in Gujarat and one in Nagpur, Maharashtra. Three ancillary manufacturing facilities located in Rajkot (I,II) and Modasa. The ancillary manufacturing facilities located in Gujarat focuses on producing besan or gram flour, raw snack pellets, seasoning and spices which are primarily used for captive consumption in the manufacturing of finished products such as gathiya, namkeen and snack pellets at their primary manufacturing facilities.

 

The Offer is being made through the Book Building Process, wherein not more than 50% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers, not less than 15% of the Net Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Net Offer shall be available for allocation to Retail Individual Investors.

 

Intensive Fiscal Services Private Limited, Axis Capital Limited and JM Financial Limited are Book Running Lead Managers to the Offer and Link Intime India Private Limited is the Registrar to the Offer. The Equity Shares are proposed to be listed on BSE and NSE.

Notes for Reference:

Issue Size of the IPO based on the upper and lower end of the price band

	Offer for Sale
Lower Band (@ Rs 381)	Rs 650 crore
Upper Band (@ Rs 401)	Rs 650 crore

 

GPT Healthcare debuts on the exchange; closes at premium

MUMBAI, FEBRUARY 29, 2024 (TGN/ BABITA P.M): Shares of GPT Healthcare which runs hospitals under the ILS Hospital brand made its debut on the exchange to close at a premium of 7.93%.

The scrip listed Rs 216.15 per share on BSE and Rs 215 per share on NSE, at a premium of 16.21% and 15.59% respectively. The company's share price closed at Rs 200.75 per share on the BSE, a 7.93% premium, and at Rs 200.25 per share on the NSE, a 6.86% premium.

As per NSE, the total quantity traded stood at 207.43 lakh shares, on BSE the total Quantity stood at 11.58 lakh shares. Total Turnover (BSE+NSE) on Day 1 stood at Rs 454.44 crore.

The Market Capitalization of the Company at today’s closing price stood at Rs. 1647.25 Crore as per BSE and Rs. 1643.15 Crore as per NSE.

GPT Healthcare, founded by Dwarika Prasad Tantia and Dr Om Tantia started with a 8 bed hospital at Salt Lake, Kolkata in 2000. Today it operates four full service multispecialty hospitals, with a total capacity of 561 beds and attends to over 35 specialties and super specialties such as internal medicine, diabetology, gastroenterology, orthopaedics and joint replacements, interventional cardiology, neurology, neurology, neurosurgery, paediatrics and neonatology.

Dr. Om Tantia, has over 4 decades of experience as a surgeon and is a specialist in the field of laparoscopic surgery. He has been the president of the Association of Minimal Access Surgeons of India along with multiple accolades to his credit, including the honorary professorship bestowed by the Indian Medical Association.

Its total income increased 7.3% to Rs 3610.37 million in fiscal year 2023 from Rs 3374.15 million in fiscal year 2022, primarily due to the increases in income from hospital services, aided by increase in patient volume; increase in income from pharmacy sales.

For the six months ended September 30, 2023, revenue from operations stood at Rs 2,041.76 million and net profit at Rs 234.85 million.

 

J.G.Chemicals Limited’s Initial Public Offering to open on Tuesday, March 5, 2024, price band set at ₹210/- to ₹221/- per Equity Share

MUMBAI, FEBRUARY 29, 2024 (TGN/ BABITA P.M): J.G.Chemicals Limited, India’s largest zinc oxide manufacturer in terms of production and revenue, has fixed the price band of ₹210/- to ₹221/- per Equity Share of face value ₹10/- each for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Tuesday, March 5, 2024, for subscription and close on Thursday, March 7, 2024.  Investors can bid for a minimum of 67 Equity Shares and in multiples of 67 Equity Shares thereafter.

 

The issue consists of a fresh issue of equity shares worth Rs 1,650 million and an offer for sale (OFS) of up to 3.90 million equity shares by investor selling shareholders.

 

Proceeds from the fresh issue to the extent of (A) Rs. 910.58 million will be utilised for investing in JG Chemicals’ Material Subsidiary by way of (i) Rs. 600 million for funding its long-term working capital requirements, (ii) Rs 60.58 million for setting up of a research and development centre at Naidupeta, Andhra Pradesh and (iii) Rs 250.00 million for repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Material Subsidiary; (B) Rs 350.00 million will be utilised for funding the long-term working capital requirements of J.G.Chemicals Limited, and (C) general corporate purposes.

 

J.G. Chemicals along with its subsidiary are India’s largest zinc oxide manufacturer in terms of production and revenue through French process, with a market share of around 30% as of March 2022. It uses French process for the manufacturing zinc oxide, a dominant production technology for producing zinc oxide adopted by all the major producers in Americas, Europe and Asia. (Source: CARE Report)

 

It sells over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally. Companies in the tyre industry in India are the largest consumers of its product. The Company also supplies to leading paints manufacturers, footwear players and cosmetics players in India.

 

Its product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.

 

From Fiscals 2017 to 2021, tyre production in India has grown at a CAGR of 0.32%, according to a CARE Report, whereas in the same period, the company’s volumes have grown at a significantly higher CAGR of 13.32%. Despite the slow growth of the biggest end-use industry customer, it has been able to grow primarily on account of its long-term relationships with tyre companies which have been developed through the products it offers them; its ability to scale up production and quality systems as per the customer requirements.

 

Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited are the book running lead managers and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.

 

Notes for Reference:

Issue Size of the IPO based on the upper and lower end of the price band

	Fresh	OFS (39,00,000 equity shares)	Total
Lower Band (@Rs 210)	Rs 165 crore	Rs 81.90 crore	Rs 246.90 crore
Upper Band (@Rs 221)	Rs 165 crore	Rs 86.19 crore	Rs 251.19 crore

RHP: https://centrum.co.in/sites/default/files/product_equity/J.G.Chemicals%20Limited%20-%20Red%20Herring%20Prospectus.pdf

Credit Flow to MSMEs Continues To Grow With Broad-based Expansion Across Semi Urban and Rural Geographies

MUMBAI, 28 FEBRUARY, 2024 (TGN): India’s commercial credit portfolio grew by 11% year-over-year (YOY) and credit exposure stood at INR 28.2 Lakh Crores at end of the quarter ending September 2023, according to the latest TransUnion CIBIL-SIDBI MSME Pulse Report. Insights show that increased economic activity has spurred the demand for commercial loans, which grew 29% YoY. Supply volumes grew by 20% year-over-year (YoY) in the July-September 2023 quarter, indicating improved lender confidence. 

Speaking on the findings of this edition of the MSME Pulse, Mr. Sivasubramanian Ramann, Chairman and Managing Director, SIDBI, said: “Lending to the MSME sector continued in H1:FY2024, despite the conclusion of the Emergency Credit Line Guarantee Scheme (ECLGS) scheme, indicating underlying growth momentum of the sector. Technology is aiding in lending to the MSME sector. Facilitating wider adoption of online loan applications, financial management tools, digital payment platforms along with utilization of robust analytics, can enhance the lending to the MSMEs and help fortify India’s businesses for sustained growth. SIDBI is working on the above lines and is leveraging technology, utilising the Digital Public Infrastructure of the Government of India, to augment credit flow to the sector with faster turnaround.”

In the July-September 2023 quarter, the total value of new MSME credit originations was INR 243K Crores, with Small segment enterprises accounting for largest share at 42%. Sustained credit supply has enabled substantial portfolio growth of 11% amounting to INR 28.2 Lakh Crores across 80 Lakh MSME entities in the quarter under review. 

During this period, overall balance-level delinquencies, measured as 90 days-past-due to 720 days-past-due and those reported as ‘sub-standard’, have improved and stood at 2.3%. 

“MSME portfolio performance improved across all borrower segments as delinquency rates declined. In the quarter ending September 2023, we saw the lowest delinquency rate in the last two years. With promising economic growth prospects reflected through strong demand, stable portfolio growth and improved credit performance, now is a good time for lenders to expand their MSME lending book. The sectoral study covered in this MSME Pulse report showcases the unique nuances of each sector within the MSME segment. The wide spectrum of occupations covered by MSMEs has the potential of catalysing social development through economic empowerment,” added Mr. Rajesh Kumar, Managing Director and CEO, TransUnion CIBIL.

Table 1: Mapping India’s MSME credit sector Demand (Commercial Credit Inquiry Volumes) Indexed to: July-September 2021 = 100
July-September 2022	July-September 2023	YoY Growth (%)
132	170	29%
Supply (MSME Disbursement Volumes- In Lakh)
July-September 2022	July-September 2023	YoY Growth (%)
9.3	11.2	20%
Growth (Balance-Sheet MSME Credit Exposure – In ₹ Lakh Crore) up to 720days
September 2022	September 2023	YoY Growth (%)
23.0	25.7	12%
Performance (Delinquency Rates)
90-720dpd (incl Sub-standard) *
September 2022	September 2023	YoY Change (bps)
3.0%	2.3%	-0.7%

The MSME portfolio excludes ~ ₹ 2.5 lakh crores of default cases beyond 720 days past due (DPD) /loss /doubtful category. Delinquency rate definition excludes legacy accounts with DPD beyond 720 days or reported as loss/doubtful

By building an online lending journey with analytical and objective credit risk assessment tools like FIT Rank, lenders can achieve improved operational efficiencies and reduce turnaround times significantly.

Rapid credit expansion across semi-urban and rural geographies 

In the July-September 2023 quarter, 46% of MSME originations were in semi-urban and rural regions. Almost half (49%) of the Micro2 segment’s originations came from the semi urban and rural areas, where 39% of originations in the Small segment come from these regions. 

Table 2: Share of Origination Volume – (Jul-Sep 2023 YoY)
Borrower Characteristics	Overall	Micro	Small	Medium
Semi Urban and Rural	46%	49%	39%	34%
Medium Risk	55%	61%	41%	20%
New to Credit	46%	61%	5%	1%

Micro Exposure up to INR 1 Cr; Small: Exposure between INR 1 Cr and INR 10 crs; Medium Exposure between INR 10 crs and INR 50 crs

Medium Risk: CMR 4-6 (Share of Borrowers)

Risk percentage is based on the origination data where risk score is available.

One of the key factors contributing to this expansion is the improvement in credit profiles of MSMEs – the share of high risk MSMEs (CMR 7-10) has reduced to 13% in the July-September 2023 quarter from 15% during the same period previous year. Medium risk (CMR 4-6) continues to have high share with 55% of MSMEs in this risk segment.  

Analysis across the states shows that originations from the large states with Maharashtra, Gujarat, Delhi, Tamil Nadu, and Uttar Pradesh continue to be high, accounting for 47.2% of the origination value. There is also a higher growth rate especially in Uttar Pradesh and Tamil Nadu in the quarter ending Sep 2023. 

These states also account for approximately 42% of New-to-Credit (NTC) originations in the Micro MSME segment, further driving the credit inclusion initiative. Within the Micro2 MSME segment, Maharashtra has a high share in the low-ticket sized Very Small segment and Micro1 segment, while Gujarat has high share in Micro 2 segment. 

Manufacturing sector accounts for highest credit originations

As per the latest information released by the Ministry of Statistics and Programme Implementation in December 2023, output in MSME manufacturing accounted for 40.83% of output in all India manufacturing during the year 2021-22. This is also reflected in TransUnion CIBIL Commercial bureau data where the Manufacturing sector1 accounts for 37% of value originated and has the largest share, followed by the ‘Trades’ sector with a 28% share. Professional Services and Other Sectors together account for the remaining 35% share (of the data considered for this report).

Textiles is the highest contributing sub-sector within Manufacturing sector originations. The majority of originations within sub-sectors are led by the Medium segment (10 Crores to 50 Crores) and catered for by private banks. The geographical distribution of originations across sub-sectors is concentrated in three top-contributing states: Gujarat, Tamil Nadu, and Maharashtra. While the manufacturing sector accounts for 37% of origination value it has only 25% share of the volumes originated. However, the manufacturing sector experienced an increased share in originations by value within the Micro2 segment compared to the previous year. The ‘Trade’ sector accounts for the highest share of origination volumes with 39% of loans originated; 36% of these disbursements are from NTC MSMEs. 

Table 3: Trade Sector: Top 3 MSME loan originating states of FY 24-Q1 and Q2
Sub-Sector	Highest	Second Highest	Third Highest
Retail Trade	Maharashtra	Uttar Pradesh	Delhi
Wholesale Trade	Maharashtra	Gujarat	Tamil Nadu

As the borrower profile and credit behaviour of each sector is different, these borrowers’ credit performance is also differently influenced by intrinsic sectoral impact. Leveraging data and analytics to understand borrower behaviour is essential to continue sustainable growth across sectors.  The core advantage of sector-wide growth is the vast geographical expanse it covers, spreading through areas where urbanization and multiple employment opportunities and development are essential. 

1. Manufacturing which includes Textiles, Food Processing, Basic Metals, Vehicles etc; Trade includes Retail trade and Wholesale trade; Professional and Other Services includes Professional Services, Hotel Tourism; Other Sectors includes Transport, Construction, Agriculture and allied activities.

2. Commercial loans classified on the basis of credit exposure aggregated at entity level, Micro: exposure up to ₹ 1 crores Very Small: < ₹ 10 lakhs; Micro1: Exposure between ₹ 10 lakhs and ₹ 50 lakhs; Micro2: Exposure between ₹ 50 lakhs and ₹ 1 crores.

About TransUnion CIBIL                                                              

India’s pioneer information and insights company, TransUnion CIBIL, makes trust possible by ensuring each person is reliably represented in the marketplace. We do this by providing an actionable view of consumers, stewarded with care. 

Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. 

We serve the financial sector as well as MSMEs, corporate and individual consumers. Our customers in India include banks, financial institutions, NBFCs, housing finance companies, microfinance companies and insurance firms.

For more information visit www.transunioncibil.com 

About SIDBI                                                              

Small Industries Development Bank of India has been established under an Act of the Parliament in 1990. SIDBI is mandated to serve as the Principal Financial Institution for executing the triple agenda of promotion, financing and development of the Micro, Small and Medium Enterprises (MSME sector) and co-ordination of the functions of the various Institutions engaged in similar activities. Over the years, through its various financial and developmental measures, the Bank has touched the lives of people across various strata of the society, impacted enterprises over the entire MSME spectrum and engaged with many credible institutions in the MSME ecosystem. SIDBI has spearheaded various Initiatives to address the Information Asymmetry in MSME sector like ‘MSME Pulse’, the health tracker of MSMEs, ‘Fintech Pulse’, for credit data insights on Fintech lending segment, ‘Microfinance Pulse’, insight report on Microfinance sector and ‘Sumpoorn Index’, an economic activity index for MSMEs to improve the insights on the MSME sector.  ‘.

For more information visit: www.sidbi.in