About the Company:
Chatha Foods Ltd is a frozen food processor, serving top QSRs (Quick Serving Restaurants), CDRs (Casual Dining Restaurants), and other players in the HoReCa (Hotel-Restaurant-Catering) Segment.
For Fiscal 2023, (i)Domino’s India franchise accounted for 51.53%, (ii) Subway’s India franchise accounted for 31.16%, respectively (ii) Café Coffee Day accounted for 1.40%, (iv) Chili’s & Pauls India accounted for 1.64%, (v) Wok Express accounted for 1.91% and (vi) Burger Singh accounted for 0.58%, of revenues .
Company’s products which sells under “Chatha Foods” is distributed through anetwork of 29 distributors covering 32 cities across India and catering to the needs of 126 mid segment & standalone small QSR brands.
All the products are produced at company’s Manufacturing Facility, located in District Mohali, with a production capacity of approximately 7,839 MT for all our frozen food products, over 2 shifts on an annual basis.
Company’ diversified product portfolio includes three categories:
Non-Vegetarian: Company manufactures and sell non-vegetarian products such as pizza toppings, sandwich fillings, burger patties, snacks and more to leading QSR’s, CDR’s and other HoReCa segment players.
Vegetarian: Company manufactures and sells vegetarian products such as pizza toppings, sandwich fillings, burger patties, taco fillings to leading QSR’s, CDR’s and other HoReCa segment players. Company ventured into vegetarian products in the year 2022.
Plant-Based: Company manufactures and sells plant-based products such as plant-based sausages, salami, pepperoni; Indian snacks like kebabs, tikkas & samosas; plant-based nuggets & burger patties, grilled burger patties to certain QSRs, CDRs and other HoReCa segment players.
Setting up the Proposed Manufacturing Facility.
Company is engaged in the business of frozen, ready-to-eat non-vegetarian and vegetarian food products using sophisticated technology to produce premium quality processed foods and is a supplier to hotels, restaurants and catering businesses.
To cater to the rapidly growing demand for Vegetarian Frozen RTE (ready to eat) & RTC (ready to cook) products, our Company is setting up the Proposed Manufacturing Facility at Mohali (Punjab).
The total estimated cost for setting up the Proposed Manufacturing Facility is Rs.30.46 cr.
Company’s Installed Capacity and Capacity Utilization:
Management Team:
- Mr. Paramjit Singh Chatha (Designation: Chairman and Managing Director)
- Mr. Gurpreet Chatha (Designation: Whole-time Director)
Objectives of the Issue:
Fresh Issue: (Rs.33.34 cr)
- Setting up the Proposed Manufacturing Unit.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Setting up the Proposed Manufacturing Facility | 24.11 cr |
Positives for the Company:
Strong Supply Chain and Input Sourcing for Quick Service Restaurants (QSR), Casual Dining Restaurants (CDR) and Other Outdoor Dining Options in India.
- Company’s customer/ base is the HoReCa segment players in India mainly the QSR and CDR segments.
- Given that a customer’s trust, loyalty and affiliation for QSRs, CDRs and other HoReCa segment is a key driver for their brand value and perception, they are very selective and cautious about the vendors they engage with.
Strong entry barriers in the industry.
- Success of QSRs, CDRs and other HoReCa segment players is highly reliant on the quality, consistency, taste and predictability of food products and hence they exercise a high degree of caution, filtering andmultiple checks and audits at the time of selection and post selection on an on-going basis.
High Quality Manufacturing Facility.
- Company has incurred substantial capital expenditure in establishing and operating a modern Manufacturing Facility equipped with high-quality equipment sourced from Germany and Italy.
- Company’s plant capacity and equipment calibre also allow us to cater to our customers volume requirements.
Setting up of an additional facility focusing on Vegetarian frozen RTEand RTC products.
- Currently company has two units within the same Manufacturing Facility, with a capacity of 2,278 MT for the vegetarian unit and 5,562 for the non- vegetarian unit.
- Given the overall growth prospects of the vegetarian’ industry in which company operate, there is a need for establishing an additional manufacturing facility which will not only help us in catering to a larger customer base but also help us increase our share of business with our existing customers.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 61.19 | 87.40 | 117.24 | 70.78 |
| Net Profit | (-4.0) | 0.67 | 2.45 | 3.41 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Chatha Foods Limited | 10 | 1.48 | 37.83 | 11.95% | 13.15 |
| Tasty Bite Eatables Ltd | 10 | 117.73 | 114.23 | 12.41% | 948.92 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 19th March 2024 |
| Issue Closes on | 21st March 2024 |
| Issue Price | Rs.53 – 56 |
| Face Value | Rs.10 |
| Minimum Lot | 2000 Shares |
| Minimum Investment | Rs.1,12,000 |
| Issue Constitutes | 26.5 % |
| Issue Size | Rs.33.34 cr |
| Market Cap | Rs. 125 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 59,62,000 |
| Equity Shares Prior to the Issue | 1,65,34,879 |
| Equity Shares after the Issue | 2,24,96,879 |
Also Read : List of Upcoming IPO’s in India.
Also Read: List of Upcoming SME IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 26th March 2024 |
| Initiation of Refunds | on or Before 27th March 2024 |
| Credit of Equity Shares: | on or Before 27th March 2024 |
| Listing Date: | on or Before 28th March 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.48 | 37.83 | 11.95% | 13.15 |
| Company Contact Info: |
|---|
| Chatha Foods Limited Village Chaundheri, Ambala Road, District Mohali, Punjab – 140 501, India. Telephone: + 91 18146 16381 Email: cs@cfpl.net.in Website: www.cfpl.net.in |
| Registrar to the Issue: |
|---|
| Skyline Financial Services Private Limited D-153 A, 1st Floor, Okhla Industrial Area, Phase – I , New Delhi – 110 020, India. Telephone: + 011-2681 2682-83 Email: ipo@skylinerta.com, info@skylinerta.com Website: www.skylinerta.com |
| Lead Manager to the Issue: |
|---|
| Indorient Financial Services Limited A-501, Executive Spaces, Rustomjee Central Park, Andheri Kurla Road, Chakala, Mumbai 400 093, Maharashtra, India. Telephone: +91 79772 12186 Email: compliance-ifsl@indorient.in Website: www.indorient.in |
