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Chatha Foods IPO: Check issue size& other details

The SME IPO of Chatha Foods will open for subscription on March 19 and close on March 21. The company aims to raise about Rs 34 crore through the SME IPO and list the shares on BSE SME platform. Here are 10 key things investors need to know about the public offer before subscribing to the issue.

1) About Chatha Foods

Chatha Foods is a frozen food processor, serving top QSRs, CDRs and other players in the HoReCa segment like Dominos and Subway’s India franchise, Café Coffee Day, Wok Express, etc. It is connected with the Indian food services/dining out industry and this accounted for almost the company’s entire revenue for the six months ended September 2023.

2) Industry overview

The QSR market in India was valued at Rs 17100 crore in FY22 and it is expected to reach Rs 43100 crore by FY27. The current decade is overseeing a shift to a larger organized sector. Customer retention and a higher range and depth of offerings are new goals among the organized market players of QSR.

3) Chatha Foods IPO size

The IPO is entirely a fresh equity issue of 59.6 lakh shares and through the issue, the company aims to raise Rs 34 crore.

4) Chatha Foods IPO price band

The company is offering its shares at Rs 53-56 apiece, and investors can bid for 2,000 shares in 1 lot.
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5) Chatha Foods IPO financial performance

For the period ended September 2023, the company clocked revenues of Rs 70.8 crore and net profit of Rs 3.41 crore.

6) Objects of the offer

The net proceeds from the public offer will be used for setting up a manufacturing facility and general corporate purposes.

7) Lead managers and Registrar

Indorient Financial Services is acting as the lead manager to the issue and Skyline Financial Services is the registrar.

8) Issue structure

About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and the rest 15% for non-institutional investors.

9) Important dates

The IPO opens on March 19 and will close on March 21. The final allotment will likely be made on March 26. The company’s shares will likely get listed on March 27.

10) Chatha Foods GMP

The company’s shares have no GMP in the unlisted market.

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