Chatha Foods Limited IPO

Chatha Foods Limited IPO Review

Chatha Foods Limited is coming up with an IPO worth INR 34 crores, consisting of a fresh issue of 59.62 lakh shares. The company plans to use the funds raised for a new manufacturing unit and general corporate purposes. 

Chatha Foods Ltd IPO – Important Dates

Chatha Foods IPO DateMarch 19, 2024 to March 21, 2024
Chatha Foods IPO Listing DateMarch 27, 2024
Chatha Foods IPO PriceINR 53 to 56 per share
Chatha Foods IPO Lot Size2000 Shares
Chatha Foods IPO Total Issue SizeINR 34 crores
Chatha Foods IPO Basis of AllotmentMarch 26, 2024
Chatha Foods IPO Initiation of RefundsMarch 27, 2024
Chatha Foods IPO Credit of Shares to DematMarch 27, 2024
Chatha Foods IPO Issue TypeBook Built Issue IPO
Chatha Foods IPO Listing AtBSE SME

Chatha Foods Limited IPO  – Company Profile

Founded in 1997, Chatha Foods Limited (CFL) is a frozen food processor, serving top QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other players in the HoReCa (Hotel-Restaurant-Catering) segment.

 For six months ended September 30, 2023,

(i)Domino’s India franchise accounted for 44.41% 

(ii) Subway’s India franchise accounted for 27.09%,

(ii) Café Coffee Day accounted for 1.24%,

(iv) Chili’s & Pauls India accounted for 2.26%, 

(v) Wok Express accounted for 3.45% and

(vi) Burger Singh accounted for 0.76% of the revenue. In addition, the brands, which sell under “Chatha Foods,” are distributed through the network of 29 distributors covering 32 cities across India and catering to the needs of 126 segment & standalone small QSR brands.

All the products are produced at the manufacturing facility located in District Mohali. Reputed Indian public market investor Negen Undiscovered Value Fund invested in the Company in 2023 and holds a 10% stake. Paramjit Singh Chatha, Gurcharan Singh Gosal and Gurpreet Chatha being amongst the Promoters of the Company have recently increased their shareholding in the Company to 25.67%, 25.03%, and 21.00% respectively in 2023.

Chatha Foods IPO – Fundamental Analysis

Chatha Foods Ltd details reveal fluctuating revenue and expenses over three years, alongside consistent growth in equity and profitability. Improved financial ratios suggest enhanced operational efficiency and liquidity, reflecting a promising investment opportunity.

Revenue Growth

The company’s revenue has fluctuated over the three years,