Chatha Foods Limited (BSE SME)

Mar 19, 2024 - Mar 21, 2024

---

Anchor Details

Name of Anchor	No. of Shares	% Portion	Amount (cr)
NEGEN UNDISCOVERED VALUE FUND	442000	26.03%	2.48
AURUM SME TRUST 1	358000	21.08%	2.00
PERSISTENT GROWTH FUND - VARSU INDIA GROWTH STORY SCHEME 1	358000	21.08%	2.00
MAURYAN FIRST	180000	10.60%	1.01
NAKSHATRA STRESSED ASSETS FUND	180000	10.60%	1.01
SAINT CAPITAL FUND	180000	10.60%	1.01
Total	1698000	100.0%	9.51

IPO Reservation

Investor Category	Shares Offered	No. of Shares
Retail	33.24%	1982000
NII (HNI)	14.25%	850000
Anchor	28.48%	1698000
QIB	18.98%	1132000
Market Maker	5.03%	300000
Total	100.00%	5962000

Founded in 1997, Chatha Foods Limited (CFL) has established itself as a prominent player in the frozen food processing industry. Specializing in providing frozen food products to top Quick Serving Restaurants (QSRs), Casual Dining Restaurants (CDRs), and other stakeholders in the Hotel-Restaurant-Catering (HoReCa) segment, CFL boasts a diverse product portfolio encompassing more than 70 meat products. From Chicken Appetizers to Meat Patties, Chicken Sausages, Sliced Meat, Toppings & Fillers, and beyond, the company caters to the evolving tastes of consumers across India. Operating under the brand Chatha Foods, CFL distributes its products through a network of 29 distributors covering 32 cities, effectively serving 126 mid-segment and standalone small QSR brands. The company's Manufacturing Facility, situated in District Mohali, features a production capacity of approximately 7,839 MT, ensuring consistent supply to meet market demands. CFL's clientele includes notable names in the industry such as Domino's, Subway, Café Coffee Day, and Wok Express. Notably, Negen Undiscovered Value Fund made a strategic investment in CFL in 2023, acquiring a 10% stake, a move indicative of the company's promising growth trajectory and solid market position. With 284 employees in fiscal year 2023, CFL remains committed to delivering high-quality frozen food products.

Company Financials

Period	30 Sep 2023	Mar 2023	Mar 2022	Mar 2021
Assets	5,827.62	5,141.94	4,830.31	4,330.28
Revenue	7,078.03	11,724.23	8,740.31	6,119.03
Profit	341.04	245.20	67.24	-400.35
Net Worth	2,516.15	2,175.12	1,929.93	1,862.68
Reserves	862.66	935.00	689.81	622.56
Borrowing	987.96	1,060.19	1,101.33	1,065.03
Amount in ₹ Lakhs

Strength Factors

Strong Supply Chain and Input Sourcing: Chatha Foods Limited benefits from a robust supply chain and input sourcing mechanism tailored to the specific needs of Quick Serving Restaurants (QSRs), Casual Dining Restaurants (CDRs), and other outdoor dining options in India. This ensures timely delivery of high-quality ingredients to meet customer demands efficiently.

In-house Manufacturing Plant Layout & Designing Capability: The Company possesses in-house capabilities for manufacturing plant layout and design, adhering to the Global Food Safety Initiative (GFSI) approved global food safety standards. This ensures that the manufacturing facilities are optimized for efficiency and safety, enhancing overall production quality.

Quality Compliance, Control, and Standards: Chatha Foods Limited maintains stringent quality compliance measures and control systems throughout its operations. Adhering to established quality standards not only ensures consistency in product quality but also fosters trust and confidence among customers.

Experienced Promoters and Management: The Company is led by experienced promoters and management professionals who bring a wealth of industry knowledge and expertise to the table. Their strategic vision and leadership play a crucial role in steering the company towards growth and success in the competitive food processing sector.

Risk Factors

Implementation Risks for Proposed Manufacturing Facility: Delays or cost overruns in setting up the proposed manufacturing facility in Village Tofhapur could adversely impact the company's operations and financial condition. Failure to obtain necessary government approvals or adhere to implementation schedules may hinder production capacity expansion efforts.

Compliance Risks for Land Purchase: The purchase of land for the manufacturing facility is subject to compliance with certain terms and conditions. Failure to meet these conditions could lead to adverse consequences for the company, potentially impacting its business operations and financial health.

Dependency on Non-Vegetarian Segment: The company derives a significant portion of its revenue from the sale of products in the non-vegetarian segment. Any loss of business in this segment, whether due to market trends, consumer preferences, or regulatory changes, could adversely affect the company's financial performance, results of operations, and cash flows.

Introduction of Plant-Based Mock Meat Product: While diversifying into plant-based mock meat products may offer growth opportunities, it also introduces risks associated with market acceptance, competition, and operational challenges. Failure to effectively penetrate or sustain growth in this new product category could impact the company's overall performance and competitive position.

Chatha Foods IPO Lead Manager(s)

• Indorient Financial Services Ltd

Skyline Financial Services Private Ltd

Phone: 02228511022
Email: ipo@skylinerta.com
Website: https://www.skylinerta.com/ipo.php