Zappfresh IPO: Issue Subscribed 21% On Day 1

The BSE SME IPO of meat delivery company Zappfresh (DSM Foods) received a lukewarm response on the first day of bidding and was subscribed 21% on the first day of bidding.

As per Chittorgarh data, the IPO received bids for 8.26 Lakh shares as against 39.08 Lakh shares on offer.

The qualified institutional buyers (QIBs) portion saw the highest subscription at 44%, with these investors bidding for 4.94 Lakh shares against 11.16 Lakh shares on offer. 

Non-institutional investors’ (NIIs) bid for 1.77 Lakh shares as against 8.38 Lakh shares reserved for them, resulting in a 21% subscription.

Meanwhile, retail investor interest for Zappfresh’s IPO remained the most lukewarm on day one. These investors bid for 1.56 Lakh shares compared to 19.53 Lakh shares reserved for them, translating to a mere 8% subscription.

The BSE SME IPO of Zappfresh paren is set to close by September 30. To subscribe to Zappfresh’s public offering, investors need to bid for at least two lots of 1,200 shares each, and in multiples thereafter.

The company’s IPO comprises solely a fresh issue of 59.06 lakh shares. It raised INR 16.8 Cr in its anchor round by allocating 16.7 Lakh equity shares to 11 anchor investors at INR 101 apiece,. Further, 3.31 Lakh shares of the BSE SME company are earmarked for market makers who provide liquidity on the exchanges.

The Gurugram-based meat delivery startup set a price band of INR 96 and INR 101 for each in its IPO. At the top of the price range, Zappfresh will raise INR 59.65 crore that will value the company at around INR 225 Cr. 

Of the proceeds that will be generated from the IPO, Zappfresh intends to deploy INR 25 Cr towards working capital and INR 15 Cr into marketing expenses. 

Zappfresh was founded in 2015 by Deepanshu Manchanda, who also cofounded Licious. It sources fresh meat directly from farms and promises delivery within 90 minutes. It operates across Maharashtra, Karnataka, Uttar Pradesh, Delhi, and Haryana, counting the likes of Licious, FreshToHome, Meatigo, and Captain Fresh among its counterparts. 

Manchanda remains the largest shareholder with a 37.64% stake, followed by Rajasthan Global Securities (6.73%), Gyan Enterprises (3.81%), and Hindustan Media Ventures (3.58%).

On the financial front, the company is on a growth spurt. Its profit nearly doubled to INR 9.1 Cr in FY25 from INR 4.7 Cr a year earlier. Its revenue rose 45% to INR 130.7 Cr from INR 90.4 Cr in FY24.

Much of this growth came from its stronghold markets. Karnataka alone contributed 42% of revenue in FY25, followed by Delhi at 19.4%. Chicken is still the king of the basket, accounting for 55% of total sales followed by seafood and mutton.