Chatha Foods IPO will open for subscription from 19 March 2024. The company aims for an issue size of ₹34 Cr through this IPO.
Company Overview
| Full name | Chatha Foods Limited |
| Sector | Fast Moving Consumer Goods |
| Industry | Consumer Foods |
| Company Website | https://www.cfpl.net.in/ |
About Company
Established in 1997, Chatha Foods Limited (CFL) operates as a frozen food processor, catering to leading QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other stakeholders in the HoReCa (Hotel-Restaurant-Catering) segment. Its product range includes Chicken Appetizers, Meat Patties, Chicken Sausages, Sliced Meat, Toppings & Fillers, and more. Negen Undiscovered Value Fund invested in the company in 2023 and holds a 10% stake.
The company’s brands, sold under “Chatha Foods,” are distributed through a network of 29 distributors covering 32 cities across India. They cater to the needs of 126 mid-segment and standalone small QSR brands. The company manufactures over 70 meat products. Chatha Foods has a manufacturing facility located in Mohali District with a production capacity of approximately 7,839 metric tons for all frozen food products, operating over two shifts annually.
The company serves top Quick Service Restaurants (QSRs), Casual Dining Restaurants (CDRs), and other players in the Hotel-Restaurant-Catering segment such as Domino’s and Subway’s India franchise, Café Coffee Day, Chili’s & Pauls India, Burger Singh, Wok Express, and more.
The Objectives of the Issue
- Setting up the Proposed Manufacturing Unit
- General Corporate Purposes
Chatha Foods IPO Timetable
| IPO Opening date | 19 March 2024 |
| IPO Closing | 21 March 2024 |
| Basis of Allotment | 26 March 2024 |
| Initiation Refund | 27 March 2024 |
| Credit to Demat Account | 27 March 2024 |
| Listing Date | 27 March 2024 |
Chatha Foods IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹34 Cr – 5,962,000 shares |
| Fresh Issue | ₹34 Cr – 5,962,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹53 to ₹56 per share |
| Lot size | 2000 Shares |
| Market Maker portion | 300,000 shares |
| Shareholding pre-issue | 16,534,879 |
| Shareholding post-issue | 22,496,879 |
| Listing Exchange | BSE SME |
Chatha Foods IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹112,000 |
| Retail (Max) | 1 | 2000 | ₹112,000 |
| HNI (Min) | 2 | 4,000 | ₹224,000 |
Chatha Foods IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Chatha Foods Financial Performance
| FY 2021 | FY 2022 | FY 2023 | H1 FY 2024 | |
| Revenue | 61.18 | 87.33 | 117.23 | 70.78 |
| Expenses | 66.72 | 86.36 | 113.87 | 66.02 |
| Net income | (4.00) | 0.67 | 2.45 | 3.41 |
Chatha Foods Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | (2.42) | 0.41 | 1.48 |
| PE ratio | – | – | 35.81 – 37.84 |
| RONW (%) | (19.41) | 3.55 | 11.95 |
| NAV | 11.27 | 11.67 | 13.15 |
| ROCE (%) | (15.85) | 6.11 | 13.43 |
| EBITDA (%) | (3.33) | 5.10 | 6.05 |
| Debt/Equity | 0.57 | 0.57 | 0.49 |
Company Promoters
- Paramjit Singh Chatha
- Gurpreet Chatha
- Gurcharan Singh Gosal
- Anmoldeep Singh
Promoter Holding
| Pre Issue Share Holding | 81.36% |
| Post Issue Share Holding |
Chatha Foods IPO Lead Manager(s)
INDORIENT FINANCIAL SERVICES LIMITED
A/501, Rustomjee Central Park, Executive Spaces,
Andheri Kurla Road, Chakala, Mumbai – 400093, Maharashtra
Phone: +91 79772 12186
Email: compliance-ifsl@indorient.in
Website: www.indorient.in
Chatha Foods Registrar
SKYLINE FINANCIAL SERVICES PVT. LTD
D-153 A, 1st Floor, Okhla Industrial Area,
Phase – I, New Delhi-110020
Phone: +011-2681 2682-83
Email: ipo@skylinerta.com
Website: www.skylinerta.com
Chatha Foods Contact Details
CHATHA FOODS LIMITED
Village Chaundheri Ambala Road,
District Mohali, Mohali – 140 501, India
Phone: + 91 18146 16381
E-mail: cs@cfpl.net.in
Website: www.cfpl.net.in
Chatha Foods IPO Allotment Status
Chatha Foods IPO allotment status will be available on Skyline Financial Services’ website. Click on this link to get allotment status.
Final thoughts
Chatha Foods IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
