Apex Frozen Foods IPO subscribed over 6 times on Day 3

Initial public offer of Apex Frozen Foods on Thursday was subscribed 6.10 times on the last day of offer. The public offer received bids for 3,78,71,280 shares against 62,10,000 shares offered by the company.

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 were over 2,00,000. The IPO closed today.

The company on Monday garnered over Rs 43 crore from anchor investors.

At the upper end, it can fetch up to Rs 152.25 crore while at the lower limit, the company will raise at least Rs 148.77 crore.

Proceeds from the issue will be utilised towards setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in Andhra Pradesh and for general corporate purposes.

Brokerage Nirmal Bang has a subscribe rating on the issue. “We like the business model of the company given its high asset turnover, customer stickiness and integrated business operations. At upper price band of Rs 175, the issue looks attractive and hence recommends investors to subscribe it for listing and long term gains.”

SPA Securities believes that the stock is available at P/E of 22.4 times based on FY17 earnings, which is justified considering the company’s strong execution capability, healthy international customer base, strong R&D focus, farms in favourable coastal belt, low net debt equity, increased value added proportion and expanding global reach.