DSM Fresh Foods Limited, the parent company of online meat and seafood brand Zappfresh, has officially closed the bookbuilding process for its IPO, recording a lukewarm overall response. The public issue, which offered up to 59 lakh equity shares, received a total subscription of 0.49 times, falling short of full booking.
The IPO opened on September 26 with a price band of Rs 96 to Rs 101 per share. Investors were required to bid for a lot size of 1,200 shares, which placed the minimum investment slightly on the higher side. This may have contributed to weaker participation from small investors.
Zappfresh IPO
While overall demand was modest, qualified institutional buyers (QIBs) showed strong confidence by subscribing fully to their allotted quota. However, response from other categories remained subdued. The non-institutional investor (NII) segment recorded 0.33 times subscription, while retail investors participated at just 0.27 times by the final bidding day.
Out of the total issue, 3.3 lakh shares were reserved for the market maker, leaving 55.7 lakh shares as net public offering. Despite a slow retail response, analysts believe the IPO reflects cautious optimism in the meat and seafood delivery sector.

Fund Utilisation Plans
DSM Fresh Foods has laid out a clear plan for deploying the IPO proceeds. The company intends to use Rs 25 crore for working capital, ensuring smoother day-to-day operations. Another Rs 15 crore has been allocated for marketing expenditure, which is crucial for customer acquisition in a highly competitive segment.
Additionally, Rs 11 crore is reserved for capital expenditure, including supply chain and infrastructure upgrades. The company has also set aside Rs 3 crore for inorganic growth opportunities, indicating potential acquisitions or strategic partnerships. The remaining funds will be directed toward general corporate purposes.
Anchor Investors
Ahead of the IPO launch, DSM Fresh Foods managed to raise Rs 16.8 crore through an anchor book placement, issuing 16.7 lakh shares at Rs 101 per share. A total of eleven institutional investors participated in this round. Craft Emerging Market Fund emerged as the biggest investor with 4 lakh shares, followed by Viney Growth Fund and Narnolia India Opportunity Fund.
Other investors such as Ekamya Pragati Scheme 1, Grobiz SME Opportunity Fund, and Milltrust International picked up smaller allocations. This early institutional interest helped build credibility ahead of the public issue.
Role of Lead Manager
Narnolia Financial Services acted as the book-running lead manager for the IPO. The shares are proposed to be listed on the SME platform of the BSE, which typically attracts early-growth companies tapping into public funding for expansion.
The moderate subscription levels suggest that the company may rely on post-listing performance and financial execution to win over long-term investors. Market experts believe that while the IPO did not receive overwhelming demand, its institutional backing provides a cushion.
Zappfresh Competitors
Zappfresh operates in a fast-growing but highly competitive fresh meat delivery market. Its major rivals include Licious, which currently leads the sector with deep funding support, and FreshToHome, known for its farm-to-consumer sourcing model. Other regional competitors include Meatigo, TenderCuts, and Fresho by BigBasket.
While Zappfresh enjoys a loyal customer base in select urban cities, it still faces the challenge of expanding geographically while maintaining quality and freshness. Its IPO strategy seems aligned with strengthening supply capabilities and boosting brand recall.
As the listing date approaches, all eyes will be on whether Zappfresh’s parent company manages to gain post-IPO momentum, especially in a market where consumer trust and operational efficiency are critical to long-term success.