Small-cap stock to be in focus on Monday after this acquisition update

Small-cap stock in focus: The share price of DSM Fresh Foods, the parent company of technology-enabled fresh foods platform in India, will be in focus on Monday as the company announced an acquisition.

In a press release dated 3 January, 2026, DSM Fresh Foods announced that its board of directors on 2 January approved the acquisition of Avyom Foodtech Private Limited (AFPL), wherein it will gain 51% stake of the ready-to-eat food company.

With the acquisition, DSM Fresh Foods has marked its formal entry into the ready food solutions segment, including ready-to-eat (RTE) and ready-to-cook (RTC) categories. The acquisition will also hekp the company expand into the overseas export markets.

₹7.5 crore acquisition

In the press release, DSM Fresh Foods said that it will carry out the acquisition through a cash infusion of ₹7.5 crore and subscribe to the shares of Avyom Foodtech. Following the cash infusion, the company will hold a 51% equity stake in AFPL.

“In addition, the company may explore the induction of external strategic investor(s) through the issuance of fresh shares in AFPL, subject to approval by the Board. This structure is intended to ensure strong alignment between the operating management and long-term capital partners while supporting the company's strategic growth objectives,” it said.

AFPL has historically achieved peak annual revenues of approximately ₹16 crore, Zappfresh said.

The acquisition will also unlock an immediate access to a fully operational food processing facility with established products and proven recipes.

What are the other features of the acquisition?

DSM Fresh Foods said that as part of the deal, Avyom Foodtech Private Limited has entered into a binding term sheet to acquire the operating food processing business of Ambrozia Frozen Foods through a slump sale on a going-concern basis. Through this, Avyom Foodtech will also acquire identified assets and liabilities.

The acquisition includes approximately 5 acres of land, a fully operational food processing facility, and associated plant and machinery, with associated liabilities such as bank borrowings and trade payables being assumed.

The funds of this transaction will be deployed in a phased manner in line with the Business Transfer Agreement (BTA )over a period. “This structured deployment ensures capital discipline while supporting a calibrated operational ramp-up,” DSM Fresh Foods said.

Zappfresh share price

Zappfresh stock price will be in focus on Monday due to the acquisition update.

The shares of DSM Fresh Foods closed in red on Friday, 2 January at ₹140.50 apiece on the BSE, marking a 2.53% fall as compared to the previous closing price.

DSM Fresh Foods stock price has fallen over the past few weeks. Over the past one week, the share price of Zappfresh fell 5.7% on the BSE, while in the last one month the stock has slumped 16.22%.

Disclaimer: This story is for educational purposes only. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.