Gopal Snacks, 2 other firms get Sebi's nod to raise fund through IPO

Gopal Snacks Ltd, piping solutions provider Dee Development Engineers and construction firm SRM Contractors have received Sebi's go-ahead to raise funds through initial public offering (IPO).

The three companies, which filed their preliminary IPO papers with the markets regulator between October and November 2023, obtained its observations during February 7-9, an update with the Securities and Exchange Board of India (Sebi) showed on Monday.

In Sebi's parlance, receiving observations from the regulator means its go-ahead to float the maiden public issue.

According to the draft red herring prospectus (DRHP), Gopal Snacks' proposed issue is entirely an Offer For Sale (OFS) of equity shares worth Rs 650 crore by promoters and other selling shareholders.

The OFS comprises sale of shares worth up to Rs 100 crore by Bipinbhai Vithalbhai Hadvani, up to Rs 540 crore by Gopal Agriproducts Pvt Ltd and up to Rs 10 crore by Harsh Sureshkumar Shah.

Founded in 1999, Gopal Snacks is a fast-moving consumer goods company in India, offering 'namkeen', western snacks, and other products across India.

The initial share-sale of Dee Development Engineers is a combination of fresh issuance of equity shares worth Rs 325 crore and an OFS of 79 lakh equity shares by promoter Krishan Lalit Bansal, according to the draft papers.

Funds mopped up through the fresh issue will be used for payment of debt, supporting working capital requirements and general corporate purposes.

Dee Development is an engineering company providing specialised process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries through engineering, procurement, and manufacturing.

The proposed maiden public issue of SRM Contractors is entirely a fresh issue of 62 lakh equity shares, as per the draft papers.

Proceeds of the issue will be used to purchase machinery, support working capital requirements, invest in joint venture projects, pay debt and for general corporate purposes.

SRM Contractors is an engineering construction and development company engaged primarily in construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in Union Territories of Jammu & Kashmir and Ladakh.