‘Apex Frozen Food – Best IPO of 2017 in India- The Other Perception’ is the post published on The Other Perception which talks about the best IPO of 2017.
2017 is about to end. It has certainly been a good year for investors after demonetization in November 2016. But the year has been more blissful for Apex Frozen Foods and their investors.
What exactly happened?
Apex Frozen Food went public on 22 August 2017 with the price of Rs 175. The company issued 8,700,000 Equity Shares worth Rs 152 Crore. IPO i.e. Initial Public Offer of Apex Frozen Foods received an unbelievable response from the investors, shareholders. The share price of Apex Frozen Foods closed at Rs 840 on Thursday, 28th December 2017 i.e. return of whopping 280% on Initial Public Offering. So far, it has been the best IPO of 2017 which gave 380% return on investment.
When the company went public, there was less demand for the IPO which discouraged the Board of Directors. In September, the company posted their earnings report in the quarter and numbers were amazing. Investors were the first one to react. They realized the growth potential of Apex Frozen Food. I third quarter, company generated the Revenue of Rs 532 Crore against and the net profit of Rs 39 Crore for the entire FY 2017. The current market capitalization of Apex Frozen Food is around Rs 2600 Crore.
Shrimp Industry in India
There is a lot of demand for Shrimps across the globe especially in the United States of America which is supposed to be the largest importer of Shrimps. Avanti Feeds, the largest shrimp feed producer in India is the first one to keep Indian Shrimp Industry on the Global level whose market capital rose from Rs 10 Crore to more than Rs 10,000 Crore in less than 10 years. It showed the potential in Indian Shrimp Industries to several investors across the globe. India’s share in Global Shrimp industry has risen drastically within a span of 5 years. In the year 2010, India had 4.5 percent of market share which increased to 7.8 percent in the year 2015. By the year 2020, market share is expected to reach 10 to 12 percent.
Shrimp Industry cross the Globe
Indian Shrimps have been demanded in the US and European countries as leading shrimp exporters, such as Vietnam and Thailand are unable to hold the current market share. Their market share has fallen drastically within a span of one year, i.e. from 15 percent in 2014 to around 10 percent in 2015. Marine Products Export Development Authority has identified the potential in this industry and it is offering required guidance and support to help it grow.
About Apex Frozen Food
Apex Frozen Food is Andhra Pradesh based Public company listed on Bombay Stock Exchange and National Stock Exchange incorporated in 1995 which went public in August 2017. Their business is to produce and export frozen aquaculture products. Their clients include retail chains, food companies, hotels, restaurants, club holders, promoters and distributors which are present across the globe from the United States of America, the largest importer of Aquaculture products to the United Kingdom and other European Countries to South East Asia.