Shares of Chatha Foods Limited made a positive debut on the BSE SME platform, listing at Rs 73, which is a premium of 30.36 percent over the issue price of Rs 56. The successful listing follows the company’s Rs 34-crore initial public offering (IPO), which received an overwhelming response from investors, subscribing 19.28 times.
Established in 1997, Chatha Foods is engaged in processing frozen food products. This includes chicken nuggets, meat Patties, chicken sausages and processed sliced meat. Its customers are fast-food businesses (QSRs), casual dining restaurants (CDRs) and certain businesses involved in the hotel-restaurant-catering industries.
The IPO, made up entirely of 59.62 lakh fresh offerings, closed for subscription on March 21. In particular, retail investors showed keen interest and got 14.60 times their kilometer quota, while qualified institutional buyers made 8.54- times their allotment and rich individuals 44.52 times.
The funds to be raised from the IPO will be used for a new manufacturing unit and for general corporate purposes, Chatha Foods said. The offer price worked out to Rs 52-56 each.
Indorient Financial Services Ltd served as the book running lead manager for the IPO, with Skyline Financial Services Private Ltd acting as the registrar for the issue. Alacrity Securities functioned as the market maker.
