Shares of DSM Fresh Foods listed on BSE SME at an IPO price of ₹100 and began trading at ₹120, later reaching the upper circuit of ₹126. The company, which sells fresh meat and ready-to-cook products under the Zappfresh brand, raised ₹59.06 crore from the IPO, which will be spent on capital expenditure, marketing, and working capital.
DSM Fresh Foods IPO Listing: Shares of DSM Fresh Foods, which sells fresh meat and ready-to-cook products under the Zappfresh brand, made a stellar entry on BSE SME. Listed at an IPO price of ₹100, the shares started trading at ₹120 and reached the upper circuit of ₹126. The company raised a total of ₹59.06 crore from the IPO, which will be utilized for capital expenditure, marketing, working capital, and other corporate purposes.
IPO Details and Listing
The IPO of DSM Fresh Foods was open from September 26 to October 6. During this period, the company aimed to raise a total of ₹59.06 crore. The IPO received a mixed response from investors. Overall, the issue was subscribed 1.36 times. The portion reserved for Qualified Institutional Buyers (QIBs) was subscribed 1.53 times, Non-Institutional Investors (NIIs) 2.06 times, and retail investors 0.96 times.
Under the IPO, 5,906,400 new shares were issued at a price of ₹100. Today, it listed on BSE SME at ₹120, meaning investors received a 20 percent listing gain. Subsequently, the share price rose further to hit the upper circuit of ₹126, resulting in a 26 percent profit for investors.
Utilization of Funds Raised from IPO
DSM Fresh Foods plans to utilize the funds raised through the IPO for various purposes. ₹10.68 crore will be used for capital expenditure, ₹15 crore for marketing activities, and ₹25 crore for working capital requirements. The remaining funds will be spent on general corporate purposes.
DSM Fresh Foods Business Model
DSM Fresh Foods was established in May 2015. The company is active in the business of fresh meat and ready-to-cook non-vegetarian products. Its products are sold online under the Zappfresh brand name. The company's mobile app has been downloaded more than a hundred thousand times on the Play Store. This company provides fresh and quality ready-to-cook products to its customers.
Financial Performance
The company's financial performance has been consistently b. Its net profit was ₹2.74 crore in FY2023, which increased to ₹4.67 crore in FY2024 and further to ₹9.05 crore in FY2025. During this period, the company's total income grew at a Compound Annual Growth Rate (CAGR) of over 52 percent to reach ₹131.47 crore.
Debt and Reserve Position
The company's debt has also gradually increased. At the end of FY2023, the debt was ₹2.07 crore, which rose to ₹7.65 crore at the end of FY2024 and further to ₹31.70 crore at the end of FY2025. As for reserves and surplus, it was ₹16.46 crore at the end of FY2023, increased to ₹37.95 crore in FY2024, and then decreased to ₹32.70 crore in FY2025.
Market Response
The IPO received bids for over 13 times the issue size overall. Although the retail investors' portion was not fully subscribed, Qualified Institutional Buyers and Non-Institutional Investors showed a good response. The surge in share price after listing provided investors with good profits on the very first day.
