Chatha Foods had a big day today. They started selling their shares on Wednesday, and it went really well.
The shares are now listed on BSE SME. This is good news because the value of the shares went up right away.
When they started selling, each share was priced at ₹56, but when they officially started trading,
they were selling for ₹73, which is 30% more! And it didn’t stop there – during the day, the price went even higher, reaching ₹76.65, which is 38% more than the starting price.
Let me give you some background: Chatha Foods started offering their shares to people who wanted to buy them on March 19, and they stopped on March 21. Each share was priced between ₹53 to ₹56.
If someone wanted to buy shares, they had to buy them in bundles of 2,000 shares.
You could buy more than that, but at least you had to buy 2,000 shares, which cost at least ₹2,000.
A lot of people wanted to buy shares of Chatha Foods! In fact, they wanted to buy almost 20 times more shares than were available.
People who just wanted a few shares (like regular folks) wanted to buy them 14.60 times more than were available.
Big investors wanted to buy them 44.52 times more, and companies and institutions wanted to buy them 8.54 times more.
Now, what does Chatha Foods do? Well, they make frozen food for restaurants and other businesses in the food industry.
The company is worth ₹34 crore. This was the first time they offered shares to the public, so it was a big deal.
Indoriant Financial Services Limited helped them with the process, and Skyline Financial Services Pvt. Ltd. kept track of who bought the shares.
