Zappfresh (DSM Fresh Foods) IPO
Zappfresh (DSM Fresh Foods) IPO Price Range is ₹95 - ₹100, with a minimum investment of ₹2,40,000 for 2400 shares per lot.
Subscription Rate
1.33x
as on 06 Oct 2025, 09:24PM IST
Minimum Investment
₹2,40,000
/ 2400 shares
IPO Status
Price Band
₹95 - ₹100
Bidding Dates
Sep 26, 2025 - Oct 6, 2025
Issue Size
₹59.06 Cr
Lot Size
1200 shares
Min Investment
₹2,40,000
Listing Exchange
BSE
IPO Doc
Zappfresh (DSM Fresh Foods) IPO Application Timeline
IPO Subscription Status
as on 06 Oct 2025, 09:24PM IST
IPO subscribed over
🚀 1.33x
This IPO has been subscribed by 0.962x in the retail category and 1.528x in the QIB category.
Subscription Rate
| Total Subscription | 1.33x |
| Retail Individual Investors | 0.962x |
| Qualified Institutional Buyers | 1.528x |
| Non Institutional Investors | 1.76x |
Objectives of IPO
- The company is undertaking an Initial Public Offering (IPO) consisting entirely of a fresh issue of 59,06,400 Equity Shares amounting to ₹59.65 crore.
- The company plans to use ₹10.67 crore towards capital expenditure. The main purpose is to set up and establish six cold storage units in Delhi, Mumbai, and Odisha. This investment aims to ensure the delivery of fresh, preservative-free meat by establishing necessary cold chain and processing capacities. The projected utilization for this work is planned to be deployed over two fiscal years, with approximately ₹5.34 crore allocated for FY26 and ₹5.34 crore for FY27.
- The company has earmarked ₹15 crore to boost brand value, increase customer recognition, and build loyalty. The funds will be deployed for branding and marketing activities, specifically through the HT Media Platform, covering radio campaigns, print media advertisements, sponsorship events, and digital collaborations. These expenses are also slated for phased deployment, with ₹7.5 crore designated for both FY26 and FY27.
- The largest portion of the funds, ₹25 crore, is intended to meet its substantial working capital needs in the ordinary course of business. The company notes that its total working capital requirement for the fiscal year ended March 31, 2025, was ₹41.24 crore, which was largely funded by short-term and long-term borrowings totaling ₹31.7 crore. Utilizing IPO proceeds will help fund incremental business growth, as the projected working capital requirement for FY26 is ₹48.3 crore.
- A portion of the IPO funds is allocated for unidentified acquisitions and general corporate purposes. These funds provide flexibility for operational expenses, development costs for non-identified projects, and marketing capabilities.
Financial Performance of Zappfresh (DSM Fresh Foods)
The company has shown strong growth over the last three years. Revenue increased from ₹56.6 crore in FY23 to ₹131.5 crore in FY25, giving it a healthy CAGR of 52.4%. Assets also expanded sharply from ₹22 crore in FY23 to ₹84 crore in FY25, showing that the business has scaled up its operations at a fast pace.
Profit after tax improved steadily, rising from ₹2.7 crore in FY23 to ₹9 crore in FY25, with margins also getting better. PAT margin moved from 4.9% in FY23 to 6.9% in FY25, while operating margins improved to 13.04% in FY25 compared to just 6% in FY23. This shows better efficiency and cost management as the business grew.
On the flip side, borrowings jumped significantly from just ₹2 crore in FY23 to ₹31.7 crore in FY25. This sharp rise, with a CAGR of nearly 292%, suggests the company is relying more on debt to fund growth. While this has helped expansion, higher interest costs could put pressure on future earnings.
Overall, the company has grown rapidly with improving profitability, but its rising debt remains a key risk to watch.
Strengths and Risks
Strengths
It shows superior capital efficiency, delivering an industry-leading Return on Capital Employed (ROCE) of 24.71% in FY25 and a Return on Net Worth (RoNW) of 20.78%.
Operational efficiency is high, resulting in an EBITDA margin of 13.04% in FY25. Its Net Profit Ratio of 6.92% is the highest among comparable listed peers.
The company leverages vendor credit efficiently, maintaining a Trade Payables Turnover Ratio of 39.21 in FY 2025. This ratio indicates that it benefits from favorable payment terms with its suppliers for procured materials.
The company achieved a revenue growth rate of 44.55% in FY25 compared to the previous year, demonstrating a faster expansion rate than its competitors.
It uses an efficient "Farm to Fork" model, supported by technology and a strict cold chain to ensure its products are fresh, hygienic, and preservative-free from sourcing to delivery.
The Promoters and management possess over 15 years of multi-functional experience in scaling businesses profitably, which is considered instrumental in driving the company's growth and strategy.
It is actively executing geographical expansion, evidenced by the business transfer agreement dated July 12, 2024, to acquire assets related to the Mumbai-based Bonsaro brand.
Risks
The company consistently reported negative Operating Cash Flow, totaling ₹16.6 crore in FY25. This pattern means core operations currently consume cash due to high working capital requirements.
Total debt stood at ₹31.7 crore as of March 31, 2025. Unsecured portions of these borrowings may be recalled by the lenders at any time, posing a material liquidity risk.
There is significant reliance on a limited number of suppliers; the top 10 suppliers accounted for 57.57% of the company’s total cost of material consumed in FY25, risking supply disruption.
The business is highly dependent on the Chicken segment, which contributed 54.85% of its total operating revenue in FY25. Fluctuations in this single segment could adversely affect financial results.
As of March 31, 2025, the company reported a total contingent liability of ₹8.68 crore related entirely to Income Tax demand. This demand stems partly from an assessment where share premium (₹11.4 crore) was considered as income.
How to Apply for Zappfresh (DSM Fresh Foods) IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Zappfresh (DSM Fresh Foods) IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of Zappfresh (DSM Fresh Foods)
Company | Operating Revenue | EBITDA Margin | Profit | P/E Ratio | Return on Equity | Operating Cash Flow |
DSM Fresh Foods | ₹130.73 Cr | 13.04% | ₹9.05 Cr | 24.85 | 20.78% | -₹16.68 Cr |
₹157.16 Cr | 7.20% | ₹6.06 Cr | 37.08 | 7.34% | -₹1.07 Cr | |
₹4,862.14 Cr | 0.15% | ₹60.3 Cr | 25.5 | 7.71% | ₹19.16 Cr | |
₹554.41 Cr | 9.34% | ₹25.61 Cr | 94.72 | 8.23% | ₹39.21 Cr |
Zappfresh (DSM Fresh Foods) Shareholding Pattern
| Promoters | 38.24% | |
| Name | Role | Stakeholding |
| Deepanshu Manchanda | Promoter | 37.64% |
| Priya Aggarwal | Promoter | 0.6% |
| Public | 61.76% | |
| Name | Role | Stakeholding |
| Rajasthan Global Securities Private Limited | Public | 6.73% |
| Gyan Enterprises Pvt Ltd | Public | 2.8% |
| Hindustan Media Ventures Limited | Public | 2.63% |
| A R Chadha and Co India Private Limited | Public | 2.35% |
| Mohammad Arif Khan | Public | 2.34% |
| Oscar Delima Pereira | Public | 1.89% |
| Vinod Sethi | Public | 1.68% |
| Shared Wealth Ventures LLC | Public | 1.62% |
| A.P.T. Research Private Limited | Public | 1.6% |
| Nagendra D Pai | Public | 1.5% |
| Others | 36.62% |
About Zappfresh (DSM Fresh Foods)
The company targets both end consumers (B2C) and business clients (B2B). For the fiscal year ended March 31, 2025, B2C operations generated ₹94.05 crore in revenue, significantly exceeding the ₹36.68 crore generated from B2B activities. Operationally, its key markets are currently Delhi-NCR and Bangalore. The core model is defined by a "Farm to Fork" supply chain, which maintains a necessary cold chain to ensure quality and preservative-free freshness. This entire process, from inventory management to order placement via its mobile application, is powered by technology. The company maintains an operational scale supported by 46 employees as of August 13, 2025.
Internally, the company’s position is heavily reliant on the Chicken segment, which accounted for 54.85% of its total operating revenue in FY25. The future strategy focuses on multiple growth pathways. This includes expanding its geographical footprint, which involves acquiring businesses, such as the July 12, 2024, agreement with Mumbai-based Majestic Aliments India Private Limited. Additionally, it plans to improve customer experience through enhanced logistics and delivery optimization. A further strategic step involves penetrating the unorganized market through the offline transformation of traditional meat shops into exclusive "Zappfresh Stores".
For more details, visit here: www.zappfresh.com
Frequently Asked Questions of Zappfresh (DSM Fresh Foods) IPO
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Who are the promoters of Zappfresh (DSM Fresh Foods)?
The promoters of DSM Fresh Foods are Mr. Deepanshu Manchanda and Mrs. Priya Aggarwal. Collectively, this promoter group held 62,64,396 Equity Shares, which represented 38.24% of the company's total issued capital before the IPO.
Who are the competitors of Zappfresh (DSM Fresh Foods)?
Its key listed industry peers used for quantitative comparison are Chatha Foods Limited, Tasty Bite Eatables Limited, and HMA Agro Industries Limited. The company also faces strong competition from specialized players like FreshToHome, as well as the 90% dominance of the unorganized meat market.
How does Zappfresh (DSM Fresh Foods) make money?
The company earns revenue by retailing fresh meat and ready-to-cook or eat non-veg products. In FY25, 54.85% of its revenue came from the Chicken segment, with the majority of total revenue (₹94.05 crore) generated from its B2C operations.