In order to largely repay “promoters’ debt”, Rajkot-based snack-maker, Gopal Snacks Pvt Ltd, will be raising ₹650 crore through an IPO which will open on March 6.

The issue will be a pure Offer For Sale, the company stated.“Bipinbhai had purchased the stake of his brother in November 2022. We had then taken a loan of ₹520 crore. During the pre-IPO held in October 2023, we had made a part payment of ₹160 crore along with interest. Now, we plan to pay the balance debt through the proceeds of the IPO,” Mukesh Shah, Chief Financial Officer of Gopal Snacks Ltd told businessline on the sidelines of a media interaction held on Saturday in Ahmedabad.

Gopal Agriproducts which is identified as one of the promoters of Gopal Snacks had availed this term loan aggregating to ₹540 crore.

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“The company Gopal Snacks is completely debt free. The loan was taken in the personal capacity of the promoter from a financial institution,” Shah said adding that of the ₹650 crore raised through the IPO, ₹520 crore will go in paying off this debt. Shah also said that the company does not need funds for any new capex investment and it will not receive any proceeds from the Offer.

Gopal Snacks is a ₹1,400 crore business of traditional Gujarati savouries. The company has six manufacturing facilities including those at Rajkot, Modasa and Nagpur. It offers a wide variety of products under the brand “Gopal” including Namkeen, Gathiya, wafers, snack pellets and other products.

The IPO will close on March 11.