Gopal Snacks share price hits 10% lower circuit after fire at Rajkot unit

Gopal Snacks share price: Snack maker Gopal Snacks shares hit 10 per cent lower circuit at Rs 406.75 per share on Thursday, December 12, 2024. 

 

The drop in the Gopal Snacks share price came after the company reported a fire incident on December 11 at its Rajkot facility.

 

Gopal Snacks said that it has taken the appropriate measures to manage the incident and there have been no casualties or injuries among its personnel onsite. The safety of Gopal Snacks team members always remains its highest priority, it added.

 

The company, on Thursday, said, “Gopal Snacks Limited informed stakeholders yesterday of a fire incident at one of the units located at Rajkot, Gujarat. As an update, the Company has taken the appropriate measures to manage the incident and there have been no casualties or injuries among its personnel onsite. The safety of Gopal Snacks team members always remains its highest priority.”

 

Considering the situation, Gopal Snacks has announced the implementation of several measures. The production activities have been ramped up at the company's Modasa and Nagpur facilities to offset the temporary closure of the Rajkot I facility. 

 

Additionally, the company is collaborating with third-party manufacturers to secure additional local production capacity as needed.

 

The company assured that its assets are fully insured, and the insurance provider has been notified of the incident.

 

Gopal Snacks stressed upon that all critical business systems, including its SAP infrastructure, remain operational and secure. There has been no data loss or disruption to its IT systems, ensuring seamless business continuity, it added.

 

Efforts are underway to restore operations at the Rajkot I facility as soon as possible. Meanwhile, the management is confident that this incident will have no major long-term impact on the Company’s operations or financial performance. 

 

“Gopal Snacks will continue to provide regular updates on the situation and as the operations at the Rajkot I facility normalise. Most importantly, no casualties or injuries were incurred onsite during the incident,” it added.

  

Gopal Snacks IPO

 

Gopal Snacks saw a lacklustre debut on the stock market, with its shares opening at Rs 350, a 13 per cent decline from its issue price of Rs 401 on the BSE on March 14. The stock was listed at Rs 351 on the National Stock Exchange (NSE).

 

About Gopal Snacks

 

Founded in 1999, Gopal Snacks is a fast-moving consumer goods (FMCG) company focusing on both ethnic and Western snacks. The company offers a diverse range of products, including traditional snacks like namkeen and gathiya, along with Western snacks such as wafers and extruded snacks. 

 

Additionally, Gopal Snacks provides various FMCG items, including papad, spices, gram flour (besan), noodles, rusk, and soan papdi, catering to both Indian and international markets.

 

At 11:18 PM, Gopal Snacks shares were trading 5.95 per cent lower at Rs 425 per share. In comparison, BSE Sensex was trading 0.05 per cent lower at 81,487.41 levels.