Business Today

Apex Frozen Foods makes market debut at nearly 14% premium to issue price

The initial public offer (IPO) of Apex Frozen Foods that deals in aquaculture products was subscribed more than six times on the final day of the bidding.

BT Online        Last Updated: September 4, 2017  | 10:32 IST
Apex Frozen Foods makes market debut at nearly 14% premium to issue price

Apex Frozen Foods, the integrated producer and exporter of shelf stable quality aquaculture products, made its debut on the bourses today.

The stock listed at Rs 199, nearly 14 percent higher over the issue price of Rs 175 on the BSE. At 10:27 am, the stock gained 19.91 percent or 34 points on the BSE.  

The initial public offer (IPO) of Apex Frozen Foods that deals in aquaculture products was subscribed more than six times on the final day of the bidding.

The IPO, with an aim to raise up to Rs 152 crore, received bids for 3,78,71,280 shares as against the total issue size of 62,10,000, indicating a subscription of 6.10 times, Apex Frozen Foods said.

Of these, high networth individuals and retail categories were subscribed 7.82 times and 8.46 times respectively, while the portion reserved for qualified institutional buyers was subscribed 1.91 times, it added.

The offer opened for public subscription from August 22. Apex Frozen Foods raised over Rs 43 crore from anchor investors. The offer of up to 87 lakh shares, including the anchor portion of 24,90,000, with a face value of Rs 10 each was in the price band of Rs 171-175.

The IPO comprised fresh issue of 72.50 lakh shares and an offer for sale of 14.50 lakh by promoters. At the upper end, the public issue can fetch up to Rs 152.25 crore while at the lower limit, the company will raise at least Rs 148.77 crore.

Proceeds from the issue will be utilised towards setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in Andhra Pradesh and for general corporate purposes.

The Andhra Pradesh-based firm will use fresh issue of shares towards the setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in the state and for general corporate purposes.

The firm which commenced operations in 1995 set up its own shrimp processing facility in 2004.

Its existing processing facility is located at Kakinada, Andhra Pradesh with a capacity of over 9,240 tonnes per annum of finished products.  It has a sizeable farming operation spread across 1,337.69 acres land.

Proceeds from the issue would be utilised towards setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in Andhra Pradesh and for general corporate purposes.

The firm supplies its ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors spread across the developed markets of USA, UK and various European countries.

Its output majorly comprises variants of processed Vannamei shrimp (White shrimp) and is sold under the brands owned by the firm's customers and also through its brands namely Bay fresh, Bay Harvest and BayPremium.

The company strategically focuses on the market of USA, which is the largest importer of aquaculture products in the world. (Source- Crisil Report).

Meanwhile, the Sensex was trading 56 points lower at 31,836 level. The Nifty 50 was down 13 points at 9961 level.

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close