Chatha Foods IPO fully subscribed on Day 1: Check subscription, offer size, issue price and other key details

Chatha Foods IPO has received a strong demand from investors as the public issue was fully subscribed on the first day on Tuesday, March 19.

The initial public offer was subscribed 1.25 times on day 1 of subscription. The investors submitted bids for 53,26,000 shares compared to 42,64,000 shares on offer, until 5 pm on Tuesday, as per the BSE data.

Chatha Foods IPO subscription is open from March 19 to March 12.

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The qualified institutional buyers’ (QIBs) portion was booked 87% on the first day of subscription while both the retail and non-institutional investors (NIIs) segments were fully subscribed.

The investors submitted bids for 9.82 lakh shares compared to 11.32 lakh shares on offer in the QIBs category. The NIIs segment saw biddings of 1.36 times with demand for 15.62 lakh shares compared to 11.5 lakh shares on offer for the category. In the retail segment, the public issue received bids for 27.82 lakh shares against 19.82 lakh shares on offer, resulting in a subscription of 1.4%, as per the BSE data.

Chatha Foods IPO date, issue size, price band, lot size and minimum investment

The ₹34-crore IPO comprises a total offer size of 59.62 lakh shares, including an anchor investor allocation of 16.98 lakh shares and a market maker portion of 3 lakh shares.

Chatha Foods IPO share allotment is expected to be finalised on Tuesday, March 26. Shares of Chatha Foods are tentatively scheduled to be listed on BSE SME on March 27.

Chatha Foods IPO price band for the IPO has been fixed between ₹53 and ₹56 per share, with a minimum lot size of 2,000 shares for retail investors. The minimum investment amount for one lot size is ₹1,12,000. For high net-worth individuals (HNIs) the minimum bidding is for two lots, or 4,000 shares, aggregating to ₹2,24,000.

Indorient Financial Services Ltd is the book running lead manager, with Skyline Financial Services Private Ltd has been appointed as the registrar. Alacrity Securities is the market maker for the Chatha Foods IPO.

Chatha Foods Limited IPO objective

A significant portion of the Chatha Foods Limited IPO, amounting to ₹24.11 crore, will be directed towards setting up a proposed manufacturing facility. This investment intends to strengthen the company’s production capabilities and help it expand its operations. The remaining money will be used for general corporate purposes, such as meeting various operational needs and exploring new opportunities for growth.

About Chatha Foods

Chatha Foods Limited was established in 1997. The company specialises in frozen food processing, catering primarily to quick serving restaurants, casual dining restaurants and other entities within the Hotel-Restaurant-Catering segment. Some of the company’s notable clientele includes Domino’s, Subway and Café Coffee Day.

The manufacturing facility of Chatha Foods is located in Mohali, Punjab. Paramjit Singh Chatha, Gurpreet Chatha, Gurcharan Singh Gosal and Anmoldeep Singh are the promoters of the company.

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