Chatha Foods Limited IPO – Open & Close Date, Reservation, Lot Size, How to apply?

Chatha Foods Limited (CFL) is set to launch its initial public offering (IPO) on March 19, 2024. This SME IPO on the Bombay Stock Exchange (BSE) aims to raise ₹34.00 crores through a fresh issue of 5,962,000 equity shares with a face value of ₹10 each.

Chatha Foods Limited IPO

The subscription period for the Chatha Foods IPO is scheduled from March 19 to March 21, 2024, with allotment anticipated by March 26, 2024. The IPO is set to be listed on BSE SME by March 27, 2024. 

IPO Date March 19 to 21, 2024
Face Value ₹10 per share
Price Band ₹53 to ₹56 per share
Lot Size 2000 Shares
Total Issue Size 5,962,000 shares (aggregating up to ₹34.00 Cr)
Fresh Issue 5,962,000 shares (aggregating up to ₹34.00 Cr)
Issue Type Book Built Issue IPO
Listing at BSE SME
Listing Date March 27, 2024
Shareholding pre issue 16,534,879
Shareholding post issue 22,496,879

Priced between ₹53 to ₹56 per share, the minimum lot size for application is 2000 shares, requiring a minimum investment of ₹112,000 for retail investors and ₹224,000 for HNIs, equivalent to 2 lots of 4,000 shares.

Chatha Foods IPO Reservation

Reservation for each category:

  • Retail Individual Investors (Retail): This category receives not less than 35% of the net issue size. These are individual investors who typically invest smaller amounts.
  • Qualified Institutional Buyers (QIB): This category can be allocated not more than 50% of the net issue size. QIBs are institutional investors like mutual funds, insurance companies, and banks.
  • Non-Institutional Investors (NII) or High Net Worth Individuals (HNI): This category receives the remaining portion of the shares after reservations for Retail and QIB are met. 

Chatha Foods Limited IPO

Chatha Foods IPO Anchor Investor Details

Chatha Foods successfully secured participation from anchor investors prior to the IPO launch. Here’s a breakdown of the key details:

  • Bid Date: March 18, 2024
  • Shares Offered to Anchors: 1,698,000
  • Total Anchor Investment: ₹9.51 Crore

Lock-in Period for Anchor Investors

Anchor investors are subject to lock-in periods, restricting them from selling their shares in the open market for a certain timeframe. Chatha Foods has implemented a differentiated lock-in period for the anchor investment:

  • Lock-in for 50% of Shares: 30 Days (ending April 25, 2024)
  • Lock-in for Remaining 50% of Shares: 90 Days (ending June 24, 2024)

This staggered lock-in period helps ensure stability in the post-listing price of the shares. The initial 50% being released after 30 days allows for some price discovery, while the remaining 50% held for 90 days provides further stability.

Chatha Foods IPO Lot Size and Investment Details

Investors can bid for a minimum of 2,000 shares and in multiples of this lot size. This means you can apply for 2,000 shares, 4,000 shares (2 lots), 6,000 shares (3 lots), and so on.

The investment amount depends on the number of shares applied for and the price band of ₹53 to ₹56 per share. Here’s a breakdown for Retail and HNI investors:

Retail Investors:

  • Minimum Investment (1 Lot – 2,000 Shares): ₹112,000 (calculated as 2,000 shares – Minimum Price of ₹53 per share)
  • Maximum Investment per Retail Investor (as per regulations): ₹112,000 (Since the lot size is fixed, retail investors can only apply for 1 lot)

HNI Investors:

  • Minimum Investment (2 Lots – 4,000 Shares): ₹224,000 (calculated as 4,000 shares – Minimum Price of ₹53 per share)
  • There is no maximum investment limit for HNI investors, but they can apply only in multiples of the lot size (2,000 shares).

How to apply for Chatha Foods Limited IPO?

Steps to apply for the Chatha Foods IPO through UPI (Unified Payments Interface):

  • Access your broker’s online platform or mobile app.
  • Locate the IPO investment section and find the Chatha Foods IPO.
  • Enter the number of shares you want to apply for and initiate the UPI payment process.
  • The funds will be blocked in your bank account until share allotment is finalised.
  • The unallocated funds will be credited back if your application is unsuccessful.

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