Chatha Foods IPO is a book built issue of Rs 34.00 crores. The issue is entirely a fresh issue of 59.62 lakh shares.
Chatha Foods IPO opens for subscription on March 19, 2024 and closes on March 21, 2024. The allotment for the Chatha Foods IPO is expected to be finalized on Tuesday, March 26, 2024. Chatha Foods IPO will list on BSE SME with tentative listing date fixed as Wednesday, March 27, 2024.
Chatha Foods IPO price band is set at ₹53 to ₹56 per share. The minimum lot size for an application is 2000 Shares. The minimum amount of investment required by retail investors is ₹112,000. The minimum lot size investment for HNI is 2 lots (4,000 shares) amounting to ₹224,000.
Indorient Financial Services Ltd is the book running lead manager of the Chatha Foods IPO, while Skyline Financial Services Private Ltd is the registrar for the issue. The market maker for Chatha Foods IPO is Alacrity Securities.
Refer to Chatha Foods IPO RHP for detailed information.
Chatha Foods IPO Details
| IPO Date | March 19, 2024 to March 21, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹53 to ₹56 per share |
| Lot Size | 2000 Shares |
| Total Issue Size | 5,962,000 shares (aggregating up to ₹34.00 Cr) |
| Fresh Issue | 5,962,000 shares (aggregating up to ₹34.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 16,534,879 |
| Share holding post issue | 22,496,879 |
| Market Maker portion | 300,000 shares Alacrity Securities |
Chatha Foods IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Issue |
Chatha Foods IPO Anchor Investors Details
Chatha Foods IPO raises Rs 9.51 crore from anchor investors. Chatha Foods IPO Anchor bid date is March 18, 2024.
| Bid Date | March 18, 2024 |
| Shares Offered | 1,698,000 |
| Anchor Portion Size (In Cr.) | 9.51 |
| Anchor lock-in period end date for 50% shares (30 Days) | April 25, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | June 24, 2024 |
Chatha Foods IPO Timeline (Tentative Schedule)
Chatha Foods IPO opens on March 19, 2024, and closes on March 21, 2024.
| IPO Open Date | Tuesday, March 19, 2024 |
| IPO Close Date | Thursday, March 21, 2024 |
| Basis of Allotment | Tuesday, March 26, 2024 |
| Initiation of Refunds | Wednesday, March 27, 2024 |
| Credit of Shares to Demat | Wednesday, March 27, 2024 |
| Listing Date | Wednesday, March 27, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 21, 2024 |
Chatha Foods IPO Lot Size
Investors can bid for a minimum of 2000 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹112,000 |
| Retail (Max) | 1 | 2000 | ₹112,000 |
| HNI (Min) | 2 | 4,000 | ₹224,000 |
| Lot Size Calculator | |||
Chatha Foods IPO Promoter Holding
Paramjit Singh Chatha, Gurpreet Chatha, Gurcharan Singh Gosal and Anmoldeep Singh are the company promoters.
| Share Holding Pre Issue | 81.36% |
| Share Holding Post Issue |
About Chatha Foods Limited
Incorporated in 1997, Chatha Foods Limited (CFL) is a frozen food processor. The company offers frozen food products to top QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other players in the HoReCa (Hotel-Restaurant-Catering) segment. Chatha Foods’ product portfolio includes Chicken Appetizers, Meat Patties, Chicken Sausages, Sliced Meat, Toppings & Fillers and more. The company produces more than 70 meat products.
The company sells products under the brand Chatha Foods and distributes through the network of 29 distributors covering 32 cities across India and catering to the needs of 126 mid-segment & standalone small QSR brands.
Chatha Foods Limited has a Manufacturing Facility, located in District Mohali, with a production capacity of approximately 7,839 MT for all the frozen food products.
The company is serving top QSRs, CDRs and other players in the Hotel-Restaurant-Catering segment like Domino’s & Subway’s India franchise, Café Coffee Day, Wok Express, etc.
Negen Undiscovered Value Fund invested in the Company in 2023 and holds a 10% stake. The company has 284 employees in fiscal year 2023.
Chatha Foods Limited Financial Information (Restated)
Chatha Foods Limited’s revenue increased by 34.14% and profit after tax (PAT) rose by 264.66% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 30 Sep 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 5,827.62 | 5,141.94 | 4,830.31 | 4,330.28 |
| Revenue | 7,078.03 | 11,724.23 | 8,740.31 | 6,119.03 |
| Profit After Tax | 341.04 | 245.20 | 67.24 | -400.35 |
| Net Worth | 2,516.15 | 2,175.12 | 1,929.93 | 1,862.68 |
| Reserves and Surplus | 862.66 | 935.00 | 689.81 | 622.56 |
| Total Borrowing | 987.96 | 1,060.19 | 1,101.33 | 1,065.03 |
| Amount in ₹ Lakhs | ||||
Key Performance Indicator
The market capitalization of Chatha Foods IPO is Rs 125.98 Cr.
KPI as of September 30, 2023.
| KPI | Values |
|---|---|
| ROE | 14.54% |
| ROCE | 14.81% |
| Debt/Equity | 0.39 |
| RoNW | 14.54% |
| P/BV | 3.68 |
| PAT Margin (%) | 4.82 |
Check Chatha Foods IPO Peer Comparison here.
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 1.48 | 3.03 |
| P/E (x) | 37.76 | 18.47 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2023 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of September 30, 2023 that is available in RHP.
Objects of the Issue (Chatha Foods IPO Objectives)
The net proceeds of the Issue, i.e. gross proceeds of the Issue less the Issue related expenses (“Net Proceeds”) are proposed to be utilised for the following objects:
1. Setting up the Proposed Manufacturing Unit
2. General Corporate Purposes
Chatha Foods Limited Contact Details
Chatha Foods Limited
272, Mota Singh Nagar,
Jalandhar – 144 001
Punjab, India
Phone: + 91 18146 16381
Email: cs@cfpl.net.in
Website: http://www.cfpl.net.in/
Chatha Foods IPO Registrar
Skyline Financial Services Private Ltd
Phone: 02228511022
Email: ipo@skylinerta.com
Website: https://www.skylinerta.com/ipo.php