Apex Frozen Foods makes robust Dalal Street debut; shares jump 20% from issue price

Shrimp exporter Apex Frozen Foods listed on bourses at Rs 199, or at a premium of 13.7% from its issue price of Rs 175 per piece. Soon after the listing, the shares of the company jumped by 20% as it was trading at Rs 209.85 per piece, up 19.91% or Rs 34.85 on BSE. 

The company's Rs 152 crore initial public offer (IPO) received a robust response from the investors as the offer was 6.14 times subscribed. 

 The company had fixed the IPO price band at Rs 171 to Rs 175 per share. 

Now the promoters will own 72.2% of the company, while the rest will be held by public shareholders. Reliance Capital Trustee Company Ltd, HSBC Midcap Equity Fund, HSBC India Opportunities Fund and ITPL --Invesco India Contra Fund, were the anchor investors. The lead manager was Karvy Investor Services Limited.

The objective of this IPO as per the company was to set up  a new shrimp processing unit with a proposed capacity of 20,000 MTPA at East Godavari District, Andhra Pradesh and General Corporate Purposes. 

The company offers mainly variants of processed white shrimp under brands namely Bay fresh, Bay Harvest and BayPremium. 

According to a report by GEPL Capital, the company source approximately 15%-20% of their raw material requirements through their own farming efforts. Their in-house farming and association with their associate farmers enable reliable and uninterrupted supply of raw shrimp.