By Admin 
DSM Fresh Foods shares: DSM Fresh Foods Ltd made a strong debut in the share market. The shares of this company, which sells fresh meat and ready-to-cook non-veg products under the Zappfresh brand, were listed on the BSE SME platform on October 9 at Rs 120 per share. This IPO price is 20 percent more than Rs 100 per share. The strong listing of shares has left the gray market estimates far behind.
According to InvestorGain data, before listing, the company’s unlisted shares were trading at zero gray market premium (GMP) at the IPO price of Rs 100 per share. Due to strong buying in the market after the listing, the share hit the upper circuit of Rs 126. That means investors made a profit of 26 percent on the very first day.
How was the response to the IPO?
DSM Fresh Foods had launched its IPO to raise over Rs 59 crore through new shares at a price band of Rs 95-100 per share. For this, investors could bid for a minimum of 1,200 shares, for which an investment of Rs 1.20 lakh per lot was required. After this it could be increased in multiples. This IPO remained open from 26 September to 6 October, which received mixed response from investors. The IPO total was subscribed 1.36 times.
The QIB segment received 1.53 times bids, the NII segment was subscribed 2.06 times and the retail investors’ quota was subscribed only 0.96 times. The company had issued 59,06,400 new shares with face value of Rs 10 under this issue.
Use of funds raised from IPO
Of the amount raised from the IPO, Rs 10.68 crore will be used for capital expenditure, Rs 25 crore will be used to meet working capital requirements, Rs 15 crore will be spent on marketing and promotion and the remaining amount will be used for corporate purposes. This company, formed in May 2015, sells fresh meat and ready-to-cook products online under the name Zappfresh. Its app has been downloaded more than 1 lakh times on Play Store.
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