Zappfresh Shares Make Public Market Debut At 20% Premium

Update | 17:00 IST

After opening at a 20% discount to the issue price, shares of Zappfresh’s parent entity closed at the upper price band of INR 126 today.

Original | 10:22 IST

Shares of D2C meat delivery company Zappfresh’s parent DSM Fresh Foods Ltd made a decent debut on the BSE SME today, listing 20% above the issue price at INR 120 apiece. 

Zappfresh’s IPO closed with 1.36X oversubscription, after the public issue had to be extended due to undersubscription. The IPO closed with investors bidding for 53.12 Lakh shares against the 39.08 Lakh shares on offer.

At 10:08, shares of Zappfresh were locked in at 5% upper circuit at INR 126, which is 26% above the issue price of INR 100. The company’s market capitalisation stood at INR 267.45 Cr (about $30 Mn). 

Founded in 2015 by Deepanshu Manchanda, Zappfresh sources fresh meat directly from farms and promises delivery to customers within 90 minutes. Promoters and promoter group together hold 28.11% stake in Zappfresh. 

Zappfresh’s IPO consisted solely of a fresh issue of up to 59.06 Lakh shares. The public issue was only subscribed 52% at the end of its closing day on September 30. Following this, the company extended the IPO till October 6 and revised the price band to INR 95-100 from INR 96-101.

The company raised INR 59.04 Cr via the IPO at the issue price of INR 100.

On the financial front, Zappfresh posted a 94% jump in its profit to INR  9.1 Cr in FY25 from INR 4.7 Cr in the previous fiscal year. Meanwhile, its top line crossed INR 100 Cr mark. It reported an operating revenue of INR 130.7 Cr, up 45% from INR 90.4 Cr in FY24. 

The company initially operated only in the B2C segment. In FY24, it entered the B2B segment, which saw its revenue rise to INR 36.7 Cr in FY25. 

With this, Zappfresh has become the latest addition to Inc42’s coverage of listed new-age tech companies. Coworking space provider WeWork India is another such company, with its shares expected to list on the bourses tomorrow.