DSM Fresh Foods Ltd., which sells fresh meat and ready-to-cook non-vegetarian products under the Zappfresh brand, made a strong debut on the stock market.
Its shares were listed on the BSE SME platform on October 9 at ₹120 per share, a 20% increase from its initial public offering (IPO) price of ₹100 per share. This strong listing exceeded expectations from the gray market.
Before the listing, unlisted shares were trading at no gray market premium (GMP) over the IPO price. On the first day, the stock surged to an upper circuit of ₹126, giving investors a 26% profit immediately.
IPO Details and Investor Response
DSM Fresh Foods launched its IPO to raise over ₹59 crore (around $1.5 billion) through new shares priced between ₹95-100 per share.
Investors had to bid for a minimum of 1,200 shares, costing ₹1.20 lakh per lot, with the option to buy more in multiples. The IPO was open from September 26 to October 6 and received a mixed response:
Overall subscription: 1.36 times
QIB (Qualified Institutional Buyers) segment: 1.53 times
NII (Non-Institutional Investors) segment: 2.06 times
Retail investor quota: 0.96 times
The company issued 5,906,400 new shares, each with a face value of ₹10.
How the IPO Funds Will Be Used
The funds raised from the IPO will be used as follows:
₹10.68 crore for capital expenditure
₹25 crore for working capital needs
₹15 crore for marketing and promotion
The remaining amount for general corporate purposes
Founded in May 2015, DSM Fresh Foods operates online under the Zappfresh brand. Its app has been downloaded over 100,000 times on the Play Store.
