Chatha Foods Limited is gearing up for its Initial Public Offering(IPO) from Tuesday, March 19, 2024, to Thursday, March 21, 2024. Chatha Foods Limited IPO is an SME IPO and recently the company announced the price for its IPO shares. Chatha Foods Limited is a frozen food processor company that is releasing its funds from private to public audiences. This is the first time for them to become public from private.
Chatha Food Limited is a prominent player in The Indian food and beverage services or dining-out industry. They are generating almost their entire revenue from this segment for the six months ended September 30, 2023. Chatha Food serves top QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other businesses in the HoReCa (Hotel-Restaurant-Catering) market. like Domino’s, Subway, Café Coffee Day, Chili’s & Pauls, Wok Express, and Burger Singh. They distribute their brand through a network of 29 distributors and covers 32 cities in India. Currently, they are serving about 126 mid-segment and standalone small QSR brands. They are huge because of their commitment to delivering quality products and better consumer experience. Chatha Foods Limited ensures that its products not only meet but exceed industry standards.
Recently, Chatha Foods decided to become public to raise funds for working capital and others in the market. They are aiming to launch an IPO of 5,962,000 shares of Rs. 10 each to mobilize Rs. 33.39 crore at the upper cap. One who is interested in the Chatha foods share can start investing on the 19th of March. Know more details-
- 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
- Shareholding pre-issue: 16,534,879
- Shareholding post issue: 22,496,879
- Market Maker portion: 300,000 shares
Financial Performance of Chatha Foods
As per the company, it has shown substantial growth in its financial performance, especially in the H1 of FY24, worth Rs 3.42 crore on the total revenue of 70.78 crore. They suppressed the revenue in H1-FY24 because of the addition of a new veg food supply chain which brings potential growth and profitability to the company. For FY23, they saw a remarkable increase in revenue and net profit, reporting Rs. 117.24 crore in revenue and Rs. 2.45 crore. They have good financial performance but now decided to become public in the market.
What is the Chatha Food IPO Market Lot?
Chatha Food IPO Market Lot is 2000 shares. It is the minimum number of shares that can be purchased by the investor in the Chatha Food Ltd IPO Shares.
For Retail Minimum
- Lot Size: 1
- Shares: 2000
- Amount: Rs 1,12,000
For Retail Maximum
- Lot Size: 1
- Shares: 2000
- Amount: Rs 1,12,000
HNI Minimum
- Lot Size: 2
- Shares: 4000
- Amount: Rs 2,24,000
How to Participate in Chatha Foods IPO?
Once to buy the Chatha Foods IPO, follow these steps-
- Create a Demat Account, if you don’t have it. Ensure a demat account with only a registered stockbroker or a Depository Participant (DP).
- Gather all the IPO details like issue size, price band, opening and closing dates, and other relevant details.
- Decide the amount you want to invest in Chatha Foods IPO and ensure you have sufficient funds in your trading Demat Account.
- On 19 March, log in to your trading account through your broker; ‘s online platform or mobile app.
- Go to the IPO section and search for “Chatha Foods Limited”
- Fill in all the required details in the Application Form like name, number of shares, etc.
- Now, make payment for the IPO share with net banking, UPI or ASBA( one most of the investors use).
- Before applying, review whether all the entered details are correct or not. You can not alter it later.
- Submit the application form
- You will get a confirmation of your IPO application with a unique application number. Save it.
- Wait for the IPO allotment process, which will take about 1 week. If your application is successful, shares will be allocated and will reflect on the trading account. If you didn’t get an allotment of shares, then your blocked funds will be released.
- Once the shares are allocated, they will be listed on the stock exchange. You can then monitor the stock price and decide whether to hold or sell them.
Why Invest in Chatha Foods IPO Share?
Investing in the Chatha Foods IPO Share can be attractive for several reasons-
- Growth Potential: Chatha Foods is a fast-growing food and beverage industry, which will offer significant growth opportunities. Day by day, demand for convenient and healthy food options increases which will raise the company value and your investment in the funds.
- Strong Financial Performance: Before investing in any IPO share, it is important to evaluate the financial performance of the company. Chatha Foods has positive track records in growth, profitability, and strong cash flows from the last few years.
- Expansion plan: Chatha Food is planning to utilize the raised funds from the IPO for business expansion and capacity enhancement. It will increase the production, market distribution and revenue growth in the future.
- Brand Recognition: It is obvious that an established brand has a loyal customer base. Chatha Foods Ltd is one of the established brands with several loyal customers. It already has brand recognition which can translate into pricing power and market dominance. Its brand recognition will drive sales and market share gains.
- Valuation: Investors should assess the valuation of Chatha Food IPo shares as per their peers and industry benchmarks. A reasonable valuation of Chatha Food considers the company’s growth prospects and financial performance.
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