Apex Frozen Foods’ IPO sails through with 6.10 times subscription

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Mumbai. August 24, 2017. The IPO of Apex Frozen Foods Ltd., a profit making, integrated producer & exporter of shelf stable quality aquaculture products, has been fully subscribed. At the end of last day, the total subscription was 6.10 times as investors bid for 3,78,71,280 shares vis a vis a book size of 62,10,000 shares. Of these, high networth individuals and retail categories were subscribed 7.82 times and 8.46 times respectively while the qualified institutional buyers’ category was subscribed 1.91 times. The total number of applications are  over 2,00,000. The IPO closed today.

The Issue opened for Public on Tuesday, 22nd August, 2017 and closed on Thursday, 24th August, 2017. The Initial Public offer (including the anchor portion) comprises of an offer of upto 87,00,000 equity shares of face value of Rs. 10 each for cash at a premium offered through a book-building route at a price-band of Rs. 171 – Rs. 175 per equity share aggregating Rs. 148.77 crores – Rs. 152.25 crores. The Issue comprises of Fresh Issue of 7,250,000 equity shares and an Offer for Sale of 1,450,000 equity shares by the Promoter & Promoter group members.

Apex Frozen Foods Ltd. has allotted 24,90,000 shares to anchor investors at Rs.175/- per share aggregating to Rs. 43.58 crores. The anchor investors include Reliance Mutual Fund, HSBC Mutual Fund and Invesco Mutual Fund.

The book running lead manager to the issue is Karvy Investor Services Limited.

The Company proposes to utilise the net proceeds from the fresh Issue towards the setting up a new shrimp processing unit with a proposed capacity of 20,000 MTPA at East Godavari District, Andhra Pradesh and for general corporate purposes. The Company’s processing facility is located at Kakinada, Andhra Pradesh with a capacity to process over 9,240 MTPA of finished products and an additional pre-processing & processing arrangement at a facility on lease located at Bapatla, Andhra Pradesh, having a capacity to process around 6,000 MTPA. The processing facilities are supplemented by cold storage facilities are located at Kakinada & Bapatla. It has its own fleet of vehicles with freezing capabilities. The facility is approved by the Export Inspection Council for export to various developed nations including USA, UK and various European Countries.

As per the Restated Standalone Financial Statements, the Company’s total revenues have grown from Rs. 2,554.83 million in Fiscal 2013 to Rs. 7,096.80 million in Fiscal 2017, at a CAGR of 29.10%, and the Company’s profit after tax, as restated, has increased from Rs. 94.15 million in Fiscal 2013 to Rs. 244.05 million in Fiscal 2017, at a CAGR of 26.89%.

Shares of the company are proposed to be listed on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

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