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Zappfresh parent DSM Fresh Foods Limited’s initial public offering closed on Monday October 6, with an oversubscription of 1.36X. As per data on Chittorgarh, investors bid for 53.12 Lakh shares in the company against the 39.08 Lakh shares on offer.

The IPO was originally scheduled for close on September 30, 2025, but was extended to October 6 after tepid response from public markets investors. The allotment for the IPO is expected to be finalised on Oct 7. The company will tentatively list on Oct 9.

At the end of the subscription, non-institutional investors (NIIs) showed the most bullishness for the public offering, oversubscribing their quota by 2.06X. These investors bid for 17.28 Lakh shares against the 8.39 Lakh shares.

Meanwhile, qualified institutional buyers (QIBs) also oversubscribed their quota 1.53X, bidding for 17.05 Lakh shares against the 11.16 Lakh shares on offer for them.

Retail investors continued to be the least interested in the company’s public offering, undersubscribing their quota. These investors bid for 18.79 Lakh shares against the 19.54 Lakh shares reserved for them, subscribing to their quota by only 96%.

While Zappfresh’s public offering has now sailed through, there was a danger that the company would miss the bus after the issue only saw 52% subscription at the end of the original window.

Besides extending the subscription window, the company also reduced the price band to INR 95-100 from INR 96-101. With the reduction in price band, Zappfresh’s IPO size reduced to INR 59.1 Cr from INR 59.7 Cr earlier.

As per an Inc42 analysis of the lukewarm reception, there were several factors behind the muted investor interest in Zappfresh, such as:

• Heavy competition from Licious, FreshToHome, quick commerce brands who have much higher scale and operating leverage
• The company’s relatively slow growth trajectory even after 10 years of operations
• Concerns over the INR 223 Cr valuation, which analysts claimed was not in keeping with the revenue benchmarks in the industry
• Zappfresh’s heavy debt of INR 32 Cr as against a fundraise of INR 59 Cr from the IPO.

Despite the concerns, it is important to note that the meat delivery company has been able to grow its top line while maintaining profitability over the past three fiscal years.

In FY25, Zappfresh’s net profit soared 94% to INR 9.1 Cr from INR 4.7 Cr PAT in FY24. Meanwhile, its operating revenue surged 45% to INR 130.7b Cr in the fiscal from INR 90.4 Cr in the previous fiscal.

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