DSM Fresh Foods Makes Strong Debut with 26.00% Premium, Lists at ₹126.00 Against Weak Subscription

DSM Fresh Foods Limited, operating under the Zappfresh brand as an online retailer of fresh meat and ready-to-cook/eat non-veg products with over 100,000 app downloads, made a strong debut on BSE SME on October 9, 2025. After closing its IPO bidding between September 26–October 6, 2025, the company commenced trading with a 20.00% premium, opening at ₹120 and rose to ₹126 with gains of 26.00%.

DSM Fresh Foods Listing Details

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DSM Fresh Foods Limited launched its IPO at ₹100 per share with a minimum investment of 2,400 shares costing ₹2,40,000. The IPO received a weak response with a subscription of just 1.36 times – individual investors at 0.96 times, NII at 2.06 times, and QIB at 1.53 times.

First-Day Trading Performance Outlook

Listing Price: DSM Fresh Foods share price opened at ₹120, representing a premium of 20.00% from the issue price of ₹100, and rose to ₹126, delivering strong gains of 26.00% for investors, reflecting positive market sentiment towards the online meat retail sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range including fresh meats (chicken, mutton, pork, seafood, specialty meats), ready-to-cook/eat items (Mutton Seekh Kebab, Chicken Cheese Nuggets, Masala Fish Fingers), cold cuts (Chicken Salami, Ham, sausages), and marinated meats through the farm-to-fork model.
• Digital-First Platform: User-friendly website and mobile app available on Android and iOS with over 100,000 downloads on the Play Store, ensuring hygienically sourced meats with innovative farm technologies for healthy animal growth and humane slaughterhouse practices.

Challenges:

• Full Valuation Metrics: Post-issue P/E of 24.87x appearing fully priced, price-to-book value of 3.37x indicating premium valuation, and operating in a highly competitive and fragmented Delhi-NCR-centric online non-veg food retail segment.
• Limited Scale and Leverage: Small workforce of just 46 employees, modest PAT margin of 5.16%, elevated debt-to-equity ratio of 0.65, and revenue base of ₹131.47 crore requiring significant scaling to maintain growth trajectory.

Utilisation of IPO Proceeds

• Business Expansion: ₹10.68 crore for capital expenditure requirements, enhancing infrastructure and operational capabilities, and ₹15.00 crore for marketing expenditure to strengthen brand visibility and customer acquisition.
• Working Capital: ₹25.00 crore for working capital requirements supporting inventory management, supply chain operations, and business scale-up in the online meat retail business.
• General Corporate Purposes: ₹2.18 crore for unidentified acquisitions and general corporate purposes supporting strategic initiatives and expansion activities.

Financial Performance of DSM Fresh Foods

• Revenue: ₹131.47 crore for FY25, showing strong growth of 45% from ₹90.68 crore in FY24, reflecting increasing market demand for online fresh meat and ready-to-cook products.
• Net Profit: ₹9.05 crore in FY25, representing exceptional growth of 94% from ₹4.67 crore in FY24, indicating substantial operational leverage and margin expansion benefits in the online meat retail business.
• Financial Metrics: Healthy ROE of 20.78%, strong ROCE of 24.71%, elevated debt-to-equity ratio of 0.65, modest PAT margin of 5.16%, moderate EBITDA margin of 13.04%, and an estimated market capitalisation of ₹280.82 crore.