Chatha Foods shares list at 30% premium over issue price on BSE SME platform

The IPO, which was completely a fresh equity issue of 59.6 lakh shares, received a healthy response from investors with a subscription of over 18 times at close.

The net proceeds from the public offer will be used for setting up a manufacturing facility and general corporate purposes.

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Chatha Foods is a frozen food processor, serving top QSRs, CDRs and other players in the HoReCa segment like Dominos and Subway’s India franchise, Café Coffee Day, Wok Express, etc.

It is connected with the Indian food services/dining out industry and this accounted for almost the company's entire revenue for the six months ended September 2023.

The company seeks to differentiate itself from its competitors through the introduction of new products, including launching innovative flavours targeted at addressing diversified consumer tastes, and market trends and providing products which are value for money to the consumers.

The QSR market in India was valued at Rs 17,100 crore in FY22 and it is expected to reach Rs 43100 crore by FY27. The current decade is overseeing a shift to a larger organized sector. Customer retention and a higher range and depth of offerings are new goals among the organized market players of QSR.

For the period ended September 2023, the company clocked revenues of Rs 70.8 crore and net profit of Rs 3.41 crore.

Indorient Financial Services acted as the lead manager to the issue and Skyline Financial Services was the registrar.