Zappfresh Makes Strong BSE SME Debut

Zappfresh, part of DSM Fresh Foods, has made an impressive entry on the BSE SME today, listing at Rs 120 per share, which is a 20% premium over its issue price of Rs 100. The initial public offering (IPO) for Zappfresh was open for subscription from September 26 to October 6, 2025, with a designated price band set between Rs 95 and Rs 100, along with a minimum investment requirement of Rs 1.2 lakh. Due to low demand, the company decided to extend the closing date from September 30, as the IPO was only 52% subscribed at that time.

IPO Subscription Performance

Ultimately, Zappfresh’s IPO was oversubscribed 1.36 times, with the retail portion at 0.96x, Qualified Institutional Buyers (QIBs) (excluding anchor investors) at 1.53x, and Non-Institutional Investors (NIIs) at 2.06x. The IPO solely consisted of a fresh issue of up to 59.06 lakh shares, generating approximately Rs 59.06 crore.

Utilization of Funds

As per the company, the net funds from this fresh issue will be allocated as follows: Rs 10.68 crore for capital expenditure, Rs 15 crore for marketing initiatives, Rs 25 crore for working capital, and the remaining funds for prospective acquisitions and general corporate use.

Market Performance and Company Background

By 1:20 PM today, Zappfresh’s shares reached the upper circuit at Rs 126 each, representing a 26% increase from the issue price, and reflecting a total market valuation of Rs 280.8 crore ($32 million). Founded in 2015 by Deepanshu Manchanda, Zappfresh specializes in selling fresh meat, seafood, and ready-to-cook products via its app and website. The company sources its meat and fish from local farms, processes them at dedicated plants, and customizes them before delivering to customers. As of the date of the Red Herring Prospectus (RHP), founder Deepanshu Manchanda retains a 27.66% ownership stake in the company.

Funding and Financial Growth

Reportedly, the SIDBI-supported company has raised around $13 million to date, with its latest funding round bringing in $4.3 million (Rs 30 crore) in November 2023 from investors such as Ah! Ventures and HT Media. For the fiscal year ending in March 2025, Zappfresh’s operational scale saw a remarkable growth of over 44%, reaching Rs 130.73 crore, while its profit nearly doubled to Rs 9.05 crore.