The initial public offering (IPO) of Apex Frozen Foods, an exporter of aquaculture products, was subscribed by 0.4 times on the first day of bidding on Tuesday as investors bid for 25.09 lakh shares of the 62.10 lakh shares on offer. The issue did not receive any bids from qualified institutional buyers. High-net-worth individuals bid for 2.27 lakh shares of the 12.45 lakh shares reserved for them, bidding 0.18 times. Retail investors bid for nearly 0.79 times or 22.81 lakh shares of the 29.05 lakh reserved shares. Apex Frozen Foods on Monday raised Rs 43.58 crore ahead of its IPO. The company sold more than 24.90 lakh shares to at a rate of Rs 175 apiece. The IPO aims to raise Rs 152.25 crore in a price band of Rs 171-175. The issue will comprise fresh issue of 72.50 lakh shares and an offer for sale of 14.50 lakh shares. The company plans to use the proceeds of the fresh issue to set up a shrimp processing unit with a capacity of 20,000 metric tonnes per annum (MTPA) and general corporate purposes. The company will not receive any money from the offer for sale.
At present, the company has a processing unit in Kakinada with a capacity to process 9,240 MTPA of finished product and an additional processing arrangement at a facility with a capacity of 6,000 MTPA. Apex Frozen Foods is a producer and exporter of aquaculture products. They supply ready to cook products to food companies, retail chains, and distributors in the US, the UK, and other European markets. Their products, which mostly comprises of variants of processed white shrimp, are sold under brands owned by their customers and their own brand names Bay Fresh and Bay Harvest.
The company posted a net profit of Rs 24.40 crore for the year ended March 2017, against a net profit of Rs 19.28 crore during the previous financial year. In 2017, companies raised Rs 14,026 crore through IPOs. Listing gains and returns by newly listed companies as also the positive sentiment in the broader market are among the reasons attributed to the trend. BSE, HUDCO, CDSL, Avenue Supermarts, Shankara Building Products, Cochin Shipyard and S Chand and Company are some of the companies who completed their IPOs in the last seven months.