IPO Details

Bidding Dates

18 Mar '24 - 20 Mar '24

Minimum Investment

₹ 112,000 / 1 Lot ( 2000 Shares )

Price Range

₹53 - ₹56

Maximum Investment

₹ 112,000 / 1 Lot ( 2000 Shares )

Retail Discount

Not Applicable

Issue Size

₹34.00 Cr

Investor category and sub category

Retail Individual Investors  |   Non-Institutional Investors  |   Qualified Institutional Buyers (QIB)  |  

Chatha Foods IPO Dates

Important dates with respect to IPO allotment and listing

IPO Anchor Date

Mar 17, 2024

IPO Opening Date

Mar 18, 2024

IPO Closing Date

Mar 20, 2024

Basis of Allotment

Mar 25, 2024

Initiation of Refunds

Mar 26, 2024

Credit of Shares to Demat

Mar 26, 2024

Listing Date

Mar 26, 2024

Cut-off time for UPI mandate confirmation

Mar 20, 2024

Chatha Foods IPO Subscription Details

DateQIBNIIRetailTotal

Day 1Mar 18, 2024

 0.87x 1.84x 1.40x 1.34x

Day 2Mar 19, 2024

 0.87x 2.18x 3.49x 2.46x

Chatha Foods IPO Subscription Status Live

Investor Category Subscription (Times)
Qualified Institutional Buyers 0.87
Non-Institutional Buyers 2.18
Retail Investors 3.49
Total 2.46

About Chatha Foods Limited

Chatha Foods Limited (CFL), established in 1997, is a prominent frozen food processor known for serving top Quick Service Restaurants (QSRs), Casual Dining Restaurants (CDRs), and other entities within the Hotel-Restaurant-Catering (HoReCa) segment. The company's reputable brand, "Chatha Foods," is widespread, distributed through a robust network of 29 distributors, covering 32 cities across India. 

This network successfully meets the demands of 126 mid-segment and standalone small QSR brands. CFL's manufacturing prowess is showcased in its Mohali district facility, boasting an annual production capacity of approximately 7,839 metric tons across all its frozen food products, achieved over two shifts.

Chatha Foods Limited's business model is multifaceted, emphasising

(a) Concept Manufacturing, where CFL retains ownership of product formulas, offering customers comprehensive turnkey solutions. This approach is bolstered by extensive research, testing, and a skilled team that conceptualises products with a unique brand identity. 

(b) Concept Sharing Manufacturing, a collaborative effort where customers share their product formulas and ideas, working closely with CFL to develop brand-specific products. 

(c) Own Brands, where CFL's products are sold under its brand through a wide distribution network targeting mid-segment and standalone QSR brands.

The company's diversified product portfolio spans across three main categories:

  1. Non-Vegetarian: Including pizza toppings, sandwich fillings, burger patties, snacks, and more, supplied to leading QSRs, CDRs, and other HoReCa segment players.
  2. Vegetarian: Launched in 2022, this range includes pizza toppings, sandwich fillings, burger patties, and taco fillings for the same target market.
  3. Plant-Based: Since 2021, CFL has expanded into plant-based products like sausages, salami, pepperoni, Indian snacks (kebabs, tikkas, samosas), nuggets, and burger patties. These are offered not only to QSRs, CDRs, and HoReCa players but also under other prominent brand names like Bluetribe (Alkem Group), Shaka Harry (Liberate Foods), Green Bird (Continental Coffee), and Plantaway (Graviss Group).

Industry Outlook 

  1. India's Quick Service Restaurant (QSR) market, valued at ₹171.90 billion in FY 2022, is forecasted to grow to ₹431.27 billion by FY 2027, with a CAGR of ~20.47%.
  2. Consumer spending in tier II and III cities on QSR dining is expected to increase by 150%, reaching ₹3,750 per household over the next three years.

Chatha Foods Limited IPO Details

Chatha Foods Limited IPO Date

The IPO of Chatha Foods Limited is open for subscription from March 19, 2024, to March 21, 2024.

Chatha Foods Limited IPO's Price Band

Chatha Foods Limiteds IPO is a fresh issue IPO of up to ₹34.00 crore. It is a book-building issue. The price range is set to ₹53 to ₹56 per share.

Chatha Foods Limited IPOs Lot Size

The lot size for Chatha Foods Limiteds IPO is 2,000 shares with a minimum investment of ₹1,12,000.

Chatha Foods Limited IPOs Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

  1. Chatha Foods Ltd intends to use ₹2,411.03 lakhs from the IPO proceeds to setup a new manufacturing facility at Mohali (Punjab).
  2. General Corporate Purposes

Peer Details

As per RHP, Tasty Bite Eatables Limited is the only listed peer whose business portfolio is comparable to the Chatha Foods.

How To Check the Allotment Status of Chatha Foods Limiteds IPO?

Steps to check IPO allotment status on Angel One’s app:

  • Log in to the Angel One app
  • Go to the IPO Section and then to IPO Orders
  • Select the individual IPO that you had applied for and check the allotment status.
  • As such, Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Chatha Foods Limited

Registered office: 272, Mota Singh Nagar, Jalandhar – 144 001, Punjab, India

Contact Person: Priyanka Oberoi(Company Secretary and Compliance Officer)

Phone: + 91 18146 16381

E-mail: cs@cfpl.net.in

Chatha Foods Financial Performance

Particulars For the period Ended on September 30, 2023 Year ending on March 31, 2023 Year ending on March 31, 2022 Year ending on March 31, 2021
Total Income (in ₹ lakh) 7,078.03 11,724.23 8,740.31 6,119.03
EBITDA Margin (%) 9.32% 6.05% 5.10% -3.33%
Profit After Tax (PAT) (in ₹ lakh) 341.04 245.2 67.24 -400.35
Current Ratio (x) 0.98 0.83 0.67 0.7
Debt to Equity Ratio(x) 0.39 0.49 0.57 0.57
Return on Equity (%) 14.81% 13.43% 6.11% -15.85%
Return on Capital Employed (RoCE) (%) 14.54% 11.95% 3.55% -19.41%
Earning Per Share (EPS)-in absolute ₹ 2.06 1.48 0.41 -2.42

Know before investing

Strengths

3

  1. CFL has strong ties with QSRs and CDRs, leading to repeat orders and a competitive edge, with relationships spanning 3 to 20 years, ensuring high customer retention.

  2. Developed over the years, CFL's supply chain ensures timely delivery, setting a high barrier for new entrants and maintaining its clients' brand reputation.

  3. Following GFSI-certified BRC standards, CFL's long-standing relationships with global suppliers (3-20 years) enable control over quality, pricing, and delivery.

Risks

4

  1. Chatha Foods Limited risks delays or cost overruns in commissioning its Proposed Manufacturing Facility in Mohali, Punjab, due to pending orders and government approvals, potentially impacting business operations and financial health.

  2. The acquisition of land for the new facility hinges on specific terms and conditions. Non-compliance could negatively affect the company's business and financial status.

  3. A significant revenue portion, amounting to 89.43% to 100% between FY 2021-2023, comes from the non-vegetarian segment. Any loss in this segment could severely impact financial results and cash flow.

  4. The company's reliance on personal guarantees and properties from its Promoter for loans poses a risk. Revocation of these guarantees could jeopardise business operations and financial conditions.

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Chatha Foods Limited IPO FAQs

What is Chatha Foods Limited's IPO?

 

Chatha Foods Limited IPO is a fresh issue of up to ₹34.00 Crore. It is a book-built issue.  

When will Chatha Foods Limited's IPO be allotted?

The Chatha Foods Limited’s shares will be allotted on March 27, 2024.

 

When will Chatha Foods Limited's IPO open for subscription?

The IPO subscription window for Chatha Foods Limited will open on March 19, 2024.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for at least one lot, which is a size of 2,000 shares, with a sum of ₹1,12,000.

When will Chatha Foods Limited list on exchanges?

Chatha Foods Limited will be listed on NSE Emerge. The stock will be listed on March 27, 2024.

 

How do I check the allotment status of Chatha Foods Limited?

Steps to check IPO allotment status on Angel One’s app:

  • Log in to the Angel One app
  • Go to the IPO Section and then to IPO Orders
  • Select the individual IPO that you had applied for and check the allotment status.
  • As such, Angel One will notify you of your IPO allotment status via push notification and email.

What would be the listing gains on Chatha Foods Limited's IPO?

Listing gains cannot be ascertained before the listing of the IPO on the stock exchange.

I have finished the application process for Chatha Foods Limited, but the funds still need to be debited. What is the reason?

Initially, the bank will only block the amount in your account. The money will not be debited until the stocks are allotted to you.

How do I approve the UPI mandate request for Chatha Foods Limited's IPO?

You must complete the payment process by logging in to your UPI handle and approving the payment mandate.

Can I submit more than one application for the public issue of Chatha Foods Limited using one PAN?

You can submit only one application using your PAN card.