Chatha Foods IPO: Issue subscribed 1.25 times on day 1, retail and NII portion booked out, check GMP and other details

The initial public offering (IPO) of frozen food processing company Chatha Foods opened for subscription on March 19. The IPO for small and medium-sized enterprises (SMEs) was subscribed more than 1.25 times on the first day of bidding.

Chatha Foods, a well-known frozen food manufacturer, serves leading QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants) and various players in the HoReCa (Hotel-Restaurant Catering) market as outlined in the Red Herring Prospectus (RHP).

The Company's revenue stream for the six-month period ended September 30, 2023 was primarily derived from its strong connections within the Indian F&B sector.

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Chatha Foods IPO Subscription Status

The IPO of Chatha Foods was subscribed over 1.25 times on the first day of bidding. The SME IPO received 53,26,000 applications for 42,64,000 shares on March 19.

The retail category was subscribed 1.40 times while QIB and NII shares were subscribed 0.87 and 1.36 times respectively on the first day of the tender.

Chatha Foods IPO details

Chatha Foods' IPO is worth it ₹34 crore, consists of fresh issue of 59,62,000 equity shares of face value ₹10 each. What is noteworthy is that this is a completely new issue without any offer component.

The net proceeds from this offering may be used for various purposes such as setting up the proposed production unit and fulfilling general corporate purposes.

Indorient Financial Services Ltd is acting as the book running lead manager for the IPO while Skyline Financial Services Private Ltd is acting as the registrar.

Also Read: Chatha Foods IPO: Price range, issue size, important details you should know

According to RHP, Tasty Bite Eatables Ltd is the only competitor in the industry with a P/E ratio of 114.23.

Regarding the IPO allocation, a minimum of 15% of the shares are reserved for non-institutional investors (NII), up to 50% for qualified institutional buyers (QIB) and at least 35% for retail investors.

The allotment basis for Chatha Foods' IPO is expected to be finalized on Tuesday, March 26. The refunds are expected to begin on Wednesday, March 27, with the shares being credited to the demat accounts of allottees on the same day of refund. Shares of Chatha Foods are expected to list on the BSE SME on Wednesday, March 27.

Chatha Foods IPO GMP today

Shares in Chatha Foods IPO are trading at a premium of ₹8 in the gray market premium (GMP). This means the estimated list price is likely ₹64, which is 14.29% more than the IPO price range of ₹56, according to Investorgain.

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