Neopolitan Pizza and Foods IPO Review - Issue Date, Price, GMP, Subscription, Allotment, Lot Size, and Details

Neopolitan Pizza specializes in take-out and delivery of pizza made from the freshest and top-quality ingredients and it also engages in the trading of agricultural commodities. The company deals in products such as wheat, rice, tomatoes, onions, and other such products.

Neopolitan Pizza, an Fixed Price Issue amounting to ₹12.00 Crores, consisting entirely an Fresh Issue of 60.00 Lakh Shares. The subscription period for the Neopolitan Pizza IPO opens on September 30, 2024, and closes on October 04, 2024. The allotment is expected to be finalized on or about Monday, October 07, 2024, and the shares will be listed on the BSE SME with a tentative listing date set on or about Wednesday, October 09, 2024.

The Share price Neopolitan Pizza IPO is set at ₹20 equity per share, with a minimum lot size of 6,000 shares. Retail investors are required to invest a minimum of ₹1,20,000, while the minimum investment for High-Net-Worth Individuals (HNIs) is 2 lots (12,000 shares), amounting to ₹2,40,000.

TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED is the book-running lead manager, BIGSHARE SERVICES PRIVATE LIMITED is the registrar for the Issue. “MNM Stock Broking Private Limited is the sole Market Marker for the Neopolitan Pizza.

Neopolitan Pizza and Foods Limited IPO GMP Today
The Grey Market Premium of Neopolitan Pizza and Foods Limited IPO is expected to be ₹0 based on the financial performance of the company. No real trading is done on the basis of Grey Market Premium that's why no real discovery of price can be done before the listing of shares on the stock exchange. The Grey Market Premium totally depends upon the Demand and Supply of the shares of the company in unorganized manner which is not recommended. The Grey Market Premium is mentioned for educational and informational purposes only.

Nepolitan Pizza and Foods Limited IPO Live Subscription Status Today: Real-Time Updates
As of 06:00 PM on 04 October 2024, the Nepolitan Pizza and Foods Limited IPO live subscription status shows that the IPO subscribed 30.14 times on its Final day of subscription period. Check the Nepolitan Pizza and Foods Limited IPO Live Subscription Status Today at BSE.

Nepolitan Pizza and Foods Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online 
Nepolitan Pizza and Foods IPO allotment date is 07 October, 2024, Monday. Neopolitan Pizza IPO Allotment will be out on 7th October 2024 and will be live on Registrar Website from the allotment date. Check Neopolitan Pizza and Foods Limited IPO Allotment Status here. Here's how you can check the allotment status:
- Navigate to the IPO allotment status page.
- Select Neopolitan Pizza and Foods Limited IPO from the dropdown list of IPOs.
- Enter your application number, PAN, or DP Client ID.
- Submit the details to check your allotment status.
By following either of these methods, investors can quickly determine their allotment status and proceed accordingly with their investments.

Objectives of Neopolitan Pizza and Foods Limited IPO
Neopolitan Pizza Issue Proceeds from the Fresh Issue will be utilized towards the following objects : 
1. ₹708.00 Lakhs will be used for Expansion of their Retail Network by launching 16 new Quick Service Restaurants (QSR) 
2. ₹26.00 Lakhs will be used for Security Deposit and Advance Rent 
3. ₹13.00 Lakhs will be used for Brokerage Charges 
4. ₹352.00 Lakhs will be used to meet Working Capital Requirements 
5. ₹71.00 Lakhs will be used for General Corporate Purposes

Refer to Neopolitan Pizza and Foods Limited RHP for more details about the Company.

Neopolitan Pizza and Foods IPO Details

IPO Date September 30, 2024 to October 04, 2024
Listing Date October 09, 2024
Face Value ₹10
Price ₹20 per share
Lot Size 6,00 Equity Shares
Total Issue Size 60,00,000 Equity Shares (aggregating to ₹12.00 Cr)
Fresh Issue 60,00,000 Equity Shares (aggregating to ₹12.00 Cr)
Offer for Sale NIL
Issue Type Fixed Price Issue
Listing At BSE SME
Share holding pre issue 1,10,00,000
Share holding post issue 1,70,00,000

Neopolitan Pizza and Foods IPO Lot Size

Application Lots Shares Amount
Retail (Min) 1 6,000 ₹1,20,000
Retail (Max) 1 6,000 ₹1,20,000
HNI (Min) 2 12,000 ₹2,40,000

Neopolitan Pizza and Foods IPO Timeline (Tentative Schedule)

IPO Open Date Monday, September 30, 2024
IPO Close Date Friday, October 04, 2024
Basis of Allotment Monday, October 07, 2024
Initiation of Refunds Tuesday, October 08, 2024
Credit of Shares to Demat Tuesday, October 08, 2024
Listing Date Wednesday, October 09, 2024
Cut-off time for UPI mandate confirmation 5 PM on October 04, 2024

Neopolitan Pizza and Foods IPO Reservation

Investor Category Shares Offered Reservation %
Non-Institutional Investor Portion 28,50,000 50% of the Net Issue
Retail Shares Offered 28,50,000 50% of the Net Issue
Market Maker Portion 3,00,000 -

Neopolitan Pizza and Foods IPO Promoter Holding

Share Holding Pre Issue 72.68%
Share Holding Post Issue 47.03 %

Neopolitan Pizza and Foods IPO Subscription Status

Investor Category Shares Offered Shares Bid For No oF Times Subscribed
Non Institutional Investors(NIIS) 31,50,000 5,93,58,000 18.84
Retail Individual Investors (RIIs) 28,50,000 12,14,76,000 42.62
Total 60,00,000 18,08,34,000 30.14

About Neopolitan Pizza and Foods Limited

Neopolitan Pizza And Foods Limited operates in two segments, namely the restaurant business and the trading of agricultural commodities. In the restaurant business, the company owns and operates its own restaurants as well as operates through a franchise model. The company offers Neopolitan-style pizza, which is a traditional Italian pizza made with fresh ingredients. The menu includes a variety of toppings, and the company offers gluten-free and vegetarian options. 

In addition to the restaurant business, Neopolitan Pizza And Foods Limited also engages in the trading of agricultural commodities. The company deals in products such as wheat, rice, tomatoes, onions, and other such products. The trading segment of the business aims to source high-quality agricultural products from trusted suppliers and sell them to customers at competitive prices. The company's strategy is to leverage its expertise in the food industry to offer a unique and high-quality dining experience to its customers while also diversifying its revenue streams by engaging in commodity trading.

Neopolitan Pizza specializes in take-out and delivery of pizza made from the freshest and top-quality ingredients. Their franchisee’s follow the same strict guidelines when preparing any Neopolitan Pizza products, thus guaranteeing consistent quality across all outlets. With the vision of providing quality food with a quick and efficient service at a very affordable price, the group of Indo Canadian Entrepreneurs, led by Mr. Mukund Purohit plans to open ‘Neopolitan Pizza’ outlet at Multiple locations across India. The choice of the menu and the needed supply chain has already been built for an easy multi location/cities scale up in form of Company stores and the franchisee network.

AGRICULTURE AND ALLIED INDUSTRY OVERVIEW
India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for about 55% of India’s population. India has the world's largest cattle herd (buffaloes), largest area planted to wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. Agriculture sector in India holds the record for second-largest agricultural land in the world generating employment for about half of the country’s population. Thus, farmers become an integral part of the sector to provide us with means of sustenance. 

Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. India’s agricultural and processed food products exports stood at US$ 43.37 billion in FY23 (April 2022-January 2023). As per Second Advance Estimates for 2022-23 (Kharif only), total foodgrain production in the country is estimated at 153.43 million tonnes. At current prices, agriculture and allied sectors account for 18.3% of India's GDP (2022-23). As per the third Advance Estimates of National Income, 2021-22 released by the National Statistical Office (NSO), Ministry of Statistics & Programme Implementation, the agriculture and allied sectors contributed approximately 18.6 % of India's GVA at current prices during 2021-22. Between April 2000-December 2022, FDI in agriculture services stood at US$ 4.43 billion. 

Rapid population expansion in India is the main factor driving the industry. The rising income levels in rural and urban areas, which have contributed to an increase in the demand for agricultural products across the nation, provide additional support for this. In accordance with this, the market is being stimulated by the growing adoption of cutting-edge techniques including blockchain, artificial intelligence (AI), geographic information systems (GIS), drones, and remote sensing technologies, as well as the release of various e-farming applications.

In terms of exports, the sector has seen good growth in the past year. In FY23 (April 2022-February 2023): 

o Exports of marine products stood at US$ 7.4 billion. 
o Exports of rice (Basmati and Non-Basmati) stood at US$ 10.2 billion. 
o Buffalo meat exports stood at US$ 2.88 billion. 
o Sugar exports stood at US$ 5.28 billion. 
o Tea exports stood at US$ 759.96 million. 
o Coffee exports stood at US$ 1.01 billion.

The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to the concerted effort of scientists to get early maturing varieties of pulses and the increase in minimum support price. 

In the next five years, the central government will aim US$ 9 billion in investments in the fisheries sector under PM Matsya Sampada Yojana. The government is targeting to raise fish production to 220 lakh tonnes by 2024- 25. Going forward, the adoption of food safety and quality assurance mechanisms such as Total Quality Management (TQM) including ISO 9000, ISO 22000, Hazard Analysis and Critical Control Points (HACCP), Good Manufacturing Practices (GMP), and Good Hygienic Practices (GHP) by the food processing industry will offer several benefits. 

Through the Ministry of Food Processing Industries (MoFPI), the Government of India is taking all necessary steps to boost investments in the food processing industry in India. Government of India has continued the umbrella PMKSY scheme with an allocation of Rs. 4,600 crore (US$ 559.4 million) till March 2026.

QUICK SERVICE RESTAURANT (QSR) INDUSTRY REPORT
According to a report, the market for food services in India is predicted to increase from US$ 41.1 billion in 2022 to US$ 79.65 billion by 2028, with a CAGR of 11.19%. 

According to the Food Service and Restaurant Business Report 2022–23 by Francorp and restaurantindia.in, the industry is predicted to employ 1 crore people by 2025, despite losing over 20 lakh jobs at the height of the COVID–19 pandemic. 

The country's restaurant and food service market is split into two segments, with the unorganised segment holding the lion's share of the market, according to the report, which also noted that the organised sector expanded rapidly between 2014 and 2020. 

The market for quick service restaurants (QSRs) in the country is predicted to be worth US$ 690.21 million in 2022 and US$ 1069.3 million in 2027, rising at a CAGR of 9.15%, according to the report's additional findings. 

The QSR chain market is anticipated to increase at a CAGR of 23% over the course of FY20–25, making it the fastest-growing sub-segment overall in the food service industry.

The rating agency, ICRA said, the quick service restaurant sector (QSR) in India is anticipated to grow by 20– 25% in the current fiscal year due to an increase in demand and more market penetration driven by a rapid shop expansion. Long-term, factors like increasing QSR penetration rates, a shift from the unorganised to the organised segment with a preference for branded QSR players, given the convenience and hygiene factors (delivery over dine-in), etc., will support revenue growth. 

ICRA predicts that the top five players in the domestic quick-service restaurant market will likely open an additional 2,300 stores between FY23-FY25, spending an estimated US$ 707 million (Rs. 5,800 crore) on capital expenditures (CAPEX) (excluding renovations) during this period. 

As per the observation of ICRA, there is expected to be a capex boom in the QSR business due to favourable demographics, India's gradual urbanisation, rising per-capita gross domestic product (GDP), and greater headroom for QSR penetration compared to a developed nation like the US. "The CAPEX over FY23-FY25 has been estimated at around approximately US$ 219.4-243.8 million (Rs. 1,800-2,000 crore) per annum, which would be around 2.5 times that of the levels seen in FY20.

NEOPOLITAN PIZZA AND FOODS LIMITED COMPETITIVE STRENGTHS
1. QSR Segment
2. Agricultural Commodity Trading Segment

NEOPOLITAN PIZZA AND FOODS LIMITED STRATEGIES
1. Focus on Quality
2. Expand their Footprint
3. Strengthen their Brand Identity
4. Innovate their Menu
5. Embrace Technology
6. Build Strong Relationships

NEOPOLITAN PIZZA AND FOODS LIMITED RISK FACTORS & CONCERNS
1. The QSR segment is particularly sensitive to changes in the economy, and any economic downturn could result in decreased customer spending on dining out.
2. The Company previously got listed on Emerge ITP Platform of National Stock Exchange of India Limited (NSE) and the same stood voluntarily delisted.
3. Neopolitan Pizza And Foods Limited's agricultural commodity trading segment is subject to several risks associated with its supply chain.
4. Neopolitan Pizza And Foods Limited operates in the QSR and agricultural commodities trading industries, both of which are highly regulated.
5. Neopolitan Pizza And Foods Limited is a company that relies heavily on technology, from online ordering systems to supply chain management.
6. Wage increases in India may reduce their profit margins.
7. They generate majority portion of sales from their operations in certain geographical regions within Gujarat.
8. Their new food products may not be successful which could have an adverse impact on the business, results of operations and future prospects.

Neopolitan Pizza and Foods Limited Financial Information (Restated Consolidated)

Amount in (₹ in Lakh)

Period Ended Mar 31, 2024 Mar 31, 2023 Mar 31, 2022
Reserve of Surplus 492.33 281.61 -63.90
Total Assets 2040.50 1811.58 1300.94
Total Borrowings 59.19 68.82 259.45
Fixed Assets 198.28 238.37 276.59
Cash 9.06 22.64 4.24
Net Borrowing 50.13 46.18 255.21
Revenue 4401.07 2004.61 1630.82
EBITDA 323.82 225.93 92.76
PAT 210.72 116.80 18.44
EPS 1.92 1.34 0.51

Note 1:- RoAE & ROCE calculation in KPI is based on 31st Mar, 2024 Data, given in RHP.
Note 2:- Pre EPS and Post EPS calculation in KPI is based (PAT) on 31st Mar, 2024 Data, given in RHP.
Note 3:- RoNW calculation in KPI is based on 31st Mar, Data, given in RHP.
Note 4:- Price to Book Value calculation in KPI is based on Cap Price after Offer, given in RHP.

Key Performance Indicator

KPI Values
EPS Pre IPO (Rs.) ₹1.92
EPS Post IPO (Rs.) ₹1.23
P/E Pre IPO 10.41
P/E Post IPO 16.26
ROE 14.08% (RoAE)
ROCE 17.06%
P/BV 1.17
Debt/Equity 0.04
RoNW 13.15%

Neopolitan Pizza and Foods Limited IPO Peer Comparison

Company Name EPS ROCE ROE P/E (x) P/Bv Debt/Equity RoNW (%)
Neopolitan Pizza and Foods Limited ₹1.23 17.06% 14.08% (RoAE) 16.26 1.17 0.04 13.15%
Restaurant Brands Asia Limited ₹-4.37 -4.68% -30.0% - 8.83 2.28 -30.0%
Barbeque-Nation Hospitality Limited ₹-3.58 5.67% -2.82% - 6.35 1.74 -2.82%
Neopolitan Pizza and Foods Limited Contact Details

NEOPOLITAN PIZZA AND FOODS LIMITED

434 & 435, SWC Hub, Opp. Rajpath Complex, Vasna Bhayli Road, Vadodara – 391410, Gujarat, India
Contact Person Manish Kumar Arora
Telephone +91 95740 00428
Email Id : csneo@neopolitanpizza.in
Website : https://www.neopolitanpizza.in/

Neopolitan Pizza and Foods IPO Registrar and Lead Manager(s)

Registrar : BIGSHARE SERVICES PRIVATE LIMITED
Contact Person Mr. Swapnil Kate
Telephone 022-62638200
Email Id : ipo@bigshareonline.com
Website : https://www.bigshareonline.com/

Lead Manager : TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED
Contact Person Mr. Heemadri Mukerjea
Telephone : +91 -11-45510390, +91-11 41395590
Email Id : info@tcagroup.in
Website : https://tcagroup.in/

Neopolitan Pizza and Foods IPO Review

Neopolitan Pizza specializes in take-out and delivery of pizza made from the freshest and top-quality ingredients and it also engages in the trading of agricultural commodities. The company deals in products such as wheat, rice, tomatoes, onions, and other such products.

Promoters of the company, Mukund Purohit and Arti Mukund Purohit have more than 15 years of experience in Quick Service Restaurants (QSR) Industry as well as Food & Beverages industry and with their innovative business ideas, in-depth knowledge and excellent management skills, the company has served their customers proficiently.

Financially, Revenue in Fiscal 2024, Fiscal 2023 and Fiscal 2022 was ₹4401.07 Lakhs, ₹2004.61 Lakhs and ₹1630.82 Lakhs, respectively. The EBITDA for the Fiscals 2024, 2023 and 2022 were 323.82 Lakhs, 225.93 Lakhs and 92.76 Lakhs respectively. The Profit after Tax for the Fiscals 2024, 2023 and 2022 were 210.72 Lakhs, 116.80 Lakhs and 18.44 Lakhs respectively. This indicates steady growth in financial performance.

For the Neopolitan Pizza anad Foods IPO, the company is issuing shares at a pre-issue EPS of ₹1.92 and a post-issue EPS of ₹1.23. The pre-issue P/E ratio is 10.41x, while the post-issue P/E ratio is 16.26x against the Industry P/E ratio is 48.97x. The company's ROCE for FY24 is 17.06% and RoAE for FY24 is 14.08%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Neopolitan Pizza and Foods showing potential listing gains of 0%. Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Avoid to the Neopolitan Pizza and Foods Limited IPO for Listing gain or long term investment purposes.

Disclaimer: The information provided in this IPO review is for educational and informational purposes only and should not be construed as financial advice or an offer to buy or sell securities. The review must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. Nothing in this document should be construed as investment advice. The content is based on publicly available information and market perceptions as of the date of publication and is subject to change. Neither the author nor the website is responsible for any losses or damages arising from the use of this information. 

About the Author
CA Abhay Kumar (Also known as CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms during the training period. He is good at Technical analysis and Fundamental Analysis and uses both Technical and Fundamental analysis along with five other important factors that affect the movement of the Market namely Global Market Analysis, Upcoming Event Analysis, Institutional Money Analysis, Derivative Data Analysis, and Emotions and Sentiment of Traders and Investors in his Framework called - Technical Fundamental GUIDE to find the winning Trades.
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