Domino’s, Subway supplier Chatha Foods IPO: Top Things to Know Before Subscribing to The Issue


by Sandip Das on 19 March 2024,  5 min read


Chatha Foods has opened the initial public offer (IPO) for subscription on March 19, 2024. The company will close the issue on March 21, 2024. The IPO price band ranges from Rs 53 to Rs 56 per equity share of face value of Rs 10 each. The lot size for Chatha Foods IPO consists of 2,000 shares, and investors can place bids for multiples of 2,000 shares.

About the Company

According to the Red Herring Prospectus (RHP), Chatha Foods operates as a frozen food processor supplying leading QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other businesses in the HoReCa (Hotel-Restaurant-Catering) market. The company boasts an annual production capacity of about 7,839 MT for all frozen food items, spread across two shifts. This operational setup enables the business to maintain consistent product quality and efficient control over the production process.

Price Band

The IPO price band ranges from Rs 53 to Rs 56 per equity share.

Issue Size

The Chatha Foods IPO, valued at Rs 34 crore, consists entirely of a fresh issue of 59,62,000 equity shares with a face value of Rs 10 each. The IPO does not include an offer-for-sale component.

Also read: KP Green Engineering IPO: Top Things to Know Before Subscribing to The Issue
IPO Reserve Portion
  • Qualified Institutional Buyers (QIB): not more than 50% of the shares
  • Non-Institutional Investors (NII): Not less than 15% of the shares
  • Retail Investors: Not less than 35% of the offer
Company Financials
Particulars (Rs lakhs) 6-months ended Sept 30, 2023 Fiscal ended March 31, 2023
Total Revenue 7,078.03 11,724.23
Profit After Tax 341.04 245.20
Objectives of the Issue

The company plans to allocate Rs 24.11 crore of the total net proceeds towards establishing a manufacturing facility in Mohali. The company has earmarked the remaining amount for general corporate purposes.

Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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