Apex Frozen Foods stellar debut at Rs 202, hits upper circuit on NSE

By: | Updated: September 4, 2017 12:33 PM

Apex Frozen Foods Ltd, which made its debut today on the exchanges by listing at Rs 202 on NSE, soared more than 21% intraday, and hit the upper circuit on NSE at Rs 212.50 at 10.05 am.

Apex Frozen Foods, IPOApex Frozen Foods Ltd shares which listed at Rs 202 on NSE; surged 21% intraday. (Image: Reuters)

Apex Frozen Foods Ltd, which made its debut today on the exchanges by listing at Rs 202 on NSE, soared more than 21% intraday, and hit the upper circuit on NSE at Rs 212.50 in less than one hour after the markets opened. On BSE the shares listed at Rs 199.9 a 14.23 per cent premium over its issue price of Rs 175.

The company had come out with its Rs 152 crore IPO between August 22 and August 24. The issue comprised of fresh issue of 72,50,000 shares and an offer for sale of 14,50,000 shares.  

Apex Frozen Foods Ltd (AFFL) is an integrated producer and exporter of shelf stable quality aquaculture products. It supplies 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. The company sells it’s produce under the brands Bay fresh, Bay Harvest and BayPremium. It strategically focuses on the market of USA, which is the largest importer of aquaculture products in the world.

HDFC Securities has identified various strengths in the company including economies of scale on account of integrated operations; strategically located processing plant and  established customer relationships. Its integrated operations comprise of hatchery, farming, pre-processing, processing and exporting of aquaculture products. The research and brokerage firm says that Apex Frozen Food Ltd’s products and processes comply with stringent quality standards set by the developed markets it serves.

Pointing out the concerns in the company, HDFC Securities says that any adverse developments or changes in the major export markets of AFFL such as the United States, United Kingdom and parts of European Union may adversely impact AFFL’s business, financial condition and results of operations, as the company generates majority of its revenues through exports.

AFFL has a total workforce of 1,344 employees in the company. As per the restated standalone financial statements, its total revenues grew from Rs 2,554.83 million in FY13 to Rs 7,096.80 million in FY17, at a CAGR of 29.10%, and the PAT grew from Rs 94.15 million in FY13 to Rs 244.05 million in FY17, at a CAGR of 26.89%.

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