Zappfresh Share: Shares of DSM Fresh Foods, a company that sells fresh meat products under the Zappfresh brand in India, will be in focus on Monday as it is going to enter a new segment. DSM Fresh Foods informed in a press release on January 3, 2025 that its Board of Directors has approved the acquisition of Avyom Foodtech Private Limited (AFPL) on January 2, in which it will get 51 percent stake in this ready-to-eat food company.

With this acquisition, DSM Fresh Foods now formally enters the ready food solutions segment, which includes ready-to-eat (RTE) and ready-to-cook (RTC) categories. With this deal the company will be helped in expanding its reach in the foreign export market.

Deal will be done through cash infusion

DSM Fresh Foods will make this deal through a cash investment of Rs 7.5 crore and then will buy the shares of Aviom Foodtech with the same. After the cash investment, the company will have 51 percent stake in AFPL. The company says that after getting the approval of the board, the company can also consider involving external strategic investors in AFPL by issuing a fresh issue. The purpose of this structure is to ensure strong coordination between operating management and long-term capital partners, as well as support the company’s objectives for strategic growth.

The acquisition includes land measuring approximately 5 acres, a fully operational food processing facility, and associated plant and machinery. Apart from this, liabilities like bank loans and trade payables are also included.

Shares of DSM Fresh Foods

After this news of acquisition, there may be movement in the shares of DSM Fresh Foods on Monday. On Friday, January 2, it closed at Rs 140.50 per share on BSE, which shows a decline of 2.53 percent compared to the previous closing price.

Disclaimer: (The information provided here is being given for information only. It is important to note here that investing in the market is subject to market risks. Always consult an expert before investing money as an investor. ABPLive.com It is never advised for anyone to invest any money here.)

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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.

Disclaimer: (The information provided here is being given for information only. It is important to mention here that investment in the market is subject to market risks. Always take expert advice before investing money as an investor. ABPLive.com never advises anyone to invest money here.)

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