Apex Frozen Foods IPO subscribed 40% on day 1

Receives bids for 25.09 lakh shares

Apex Frozen Foods initial public offer (IPO) received bids for a total of 25.09 lakh shares on the first day of bidding today, 22 August 2017, data on the National Stock Exchange of India (NSE) website showed as at 17:00 IST. The IPO was subscribed 0.40 times.

The IPO closes on 24 August 2017. The price band of the IPO is fixed at Rs 171 to Rs 175 per equity share. The IPO consists of 87 lakh equity shares (including allotment to anchor investors), comprising of a fresh issue of 72.5 lakh equity shares by the company and an offer for sale by selling shareholders of 7.25 lakh equity shares by Karuturi Satyanarayana Murthy and up to 7.25 lakh equity shares by Karuturi Padmavathi. The IPO includes a reservation of not exceeding 5% of the post-issue paid up equity share capital to the employees.

The net issue will constitute 27.84% of the post-issue paid-up equity share capital and the net issue to the public would constitute 26.56% of the post-issue paid-up share capital of the company.

Ahead of the IPO, the company raised Rs 43.57 crore by selling 24.90 lakh shares to a total of three anchor investors. The shares were allotted to the anchor investors at Rs 175 per share, the top end of the Rs 171 to Rs 175 per share price band for the IPO.

Apex Frozen Foods is one of the integrated producer and exporter of shelf stable quality aquaculture products. The company produces 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.

Apex will use most of the proceeds to set up a new shrimp processing unit with a proposed capacity of 20,000 million tonnes per annum (MTPA) in Andhra Pradesh.

Apex Frozen Food reported net profit of Rs 8.04 crore on net sales of Rs 164.01 crore in Q1 March 2017.

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