Chatha Foods share price makes a strong debut, stock opens with 30% premium at ₹73 apiece on BSE SME

Chatha Foods share price made a positive debut on BSE SME today. On BSE SME, Chatha Foods share price opened at ₹73, which is 30.36% higher than the issue price of ₹56. 

Chatha Foods IPO opened for subscription on Tuesday, March 19, and closed on Thursday, March 21. The issue's price band was set in the range of ₹53 to ₹56 apiece of face value of ₹10. Chatha Foods IPO lot size comprised of 2,000 shares. Bids could be placed for multiples of 2,000 shares, with a minimum bid of 2,000.

Chatha Foods IPO subscription status on the third day was 19.28 times, where the retail segment was subscribed 14.60 times, non-institutional investors (NIIs) portion was booked 44.52 times and qualified institutional buyers (QIBs) was subscribed 8.54 times.

Also Read: Chatha Foods IPO: Price band, issue size, key details to know

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It set aside a not less than 15% of the shares for NII, not more than 50% of the shares for QIB, and not less than 35% of the offer for retail investors.

As per Red Herring Prospectus (RHP), Chatha Foods is a frozen food processor that services top QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other enterprises in the HoReCa (Hotel-Restaurant-Catering) industry.

This source accounted for virtually all of the business's income for the six months ended September 30, 2023, given its solid linkages to the Indian food services and dining out sector. 

The company's sole peer in the industry is Tasty Bite Eatables Ltd (with a P/E of 114.23), as mentioned in the RHP.

Chatha Foods IPO details

Chatha Foods IPO, which is worth ₹34 crore, comprises a fresh issue of 59,62,000 equity shares with a face value of ₹10. This is a completely a fresh issue, and there is no offer-for-sale component.

The following objectives, including establishing the planned manufacturing unit and general company purposes, offer possible uses for the issue's net proceeds.

The company's book running lead manager is Indorient Financial Services Ltd and the registrar is Skyline Financial Services Private Ltd.

Also Read: Chatha Foods IPO allotment finalised today; check latest GMP, 4 steps to check status

Chatha Foods IPO GMP today 

Chatha Foods IPO GMP or grey market premium is +10. This indicates Chatha Foods share price were trading at a premium of ₹10 in the grey market, according to www.investorgain.com

Considering the upper end of the price band and the current premium on the grey market, the estimated listing price of Chatha Foods shares is ₹66 apiece, or 17.86% more than the IPO price of ₹56.

IPO GMP is heading upward and is expected to have a solid listing based on the actions of the past 14 sessions of the gray market. According to researchers at investorgain.com, the lowest GMP is ₹0, and the maximum GMP is ₹13.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Chatha Foods IPO: Issue subscribed 19.28 times on day 3, NIIs bid highest; check GMP and other details

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