BSE SME Chatha Foods spurts on listing

Shares of Chatha Foods were quoting at Rs 73.61 on the BSE, a premium of 31.45% compared with the issue price of Rs 56.

The scrip was listed at Rs 73, a premium of 30.36% compared with the initial public offer (IPO) price. The stock is currently up 0.84% over its listing price.

The counter hit a high of Rs 76.65 and a low of Rs 70.37. About 18.02 lakh shares of the company changed hands at the counter.

Chatha Foods' IPO was subscribed 12.87 times. The issue opened for bidding on 19 March 2024 and it will close on 21 March 2024. The price band of the IPO was fixed at Rs 53 to 56 per share.

The IPO comprised fresh issue of 59,62,000 shares. The company intends to utilise the net proceeds for setting up the proposed manufacturing unit and for general corporate purposes.

Ahead of the IPO, Chatha Foods on 18 March 2024, raised Rs 9.50 crore from anchor investors. The board allotted 16.98 lakh shares at Rs 56 per share to 1 anchor investor.

Chatha Foods is engaged in the business of production of processed and frozen non-vegetarian and vegetarian food. The company is serving top QSRs, CDRs and other players in the hotel-restaurant-catering segment like Domino's & Subway's India franchise, CafCoffee Day, Wok Express, etc. The company sells products under the brand Chatha Foods and distributes through the network of 29 distributors covering 32 cities across India and catering to the needs of 126 mid-segment & standalone small QSR brands. As on 30 September 2023, the company has 327 employees.

The company recorded revenue from operations of Rs 70.77 crore and net profit of Rs 3.41 crore for the period as on 30 September 2023.

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