NeoPolitan Pizza and Foods Ltd. made a noteworthy entrance on the BSE SME, with shares initially listing at Rs 19.25, reflecting a 3.75% discount from its IPO issue price of Rs 20. Despite this subdued start, the stock gained traction, climbing to Rs 20.21, ultimately hitting a 5% upper circuit. Investors who acquired a single lot of 6,000 shares faced an initial loss of Rs 4,500 against an investment of Rs 1,20,000 at the time of listing.

NeoPolitan Pizza specializes in delivering high-quality pizza made from fresh ingredients while also engaging in the trading of agricultural commodities. The company handles products like wheat, rice, tomatoes, and onions, establishing a diverse operational footprint.

The IPO for NeoPolitan Pizza amounted to ₹12.00 crores, consisting entirely of a fresh issue of 60.00 lakh shares. The subscription period for the IPO ran from September 30, 2024, to October 04, 2024, with allotment expected to be finalized on October 07, 2024, and shares listed on the BSE SME on October 09, 2024.

Investors had to meet a minimum investment of ₹1,20,000, acquiring a minimum lot size of 6,000 shares, while High-Net-Worth Individuals (HNIs) were required to invest a minimum of ₹2,40,000 for two lots (12,000 shares).

The book-running lead manager for the IPO is TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED, with BIGSHARE SERVICES PRIVATE LIMITED serving as the registrar. MNM Stock Broking Private Limited is the sole market maker for NeoPolitan Pizza.

NeoPolitan Pizza and Foods Limited IPO Grey Market Premium

The Grey Market Premium (GMP) for NeoPolitan Pizza shares is currently pegged at ₹0, which reflects the financial performance and uncertain trading conditions surrounding the IPO. The GMP, which varies based on demand and supply, is shared for educational purposes only and does not typically influence official market prices.

IPO Subscription Status

As of 06:00 PM on October 04, 2024, the NeoPolitan Pizza IPO recorded a robust subscription rate of 30.14 times on its final day, indicating strong investor interest.

Allotment Process

The allotment date for the NeoPolitan Pizza IPO is October 07, 2024. Investors can check their allotment status by visiting the registrar's website and providing necessary details like the application number, PAN, or DP Client ID.

Objectives of the IPO

The proceeds from the NeoPolitan Pizza fresh issue will be allocated as follows:

₹708.00 Lakhs for the expansion of their retail network by launching 16 new Quick Service Restaurants (QSR).

₹26.00 Lakhs for security deposits and advance rent.

₹13.00 Lakhs for brokerage charges.

₹352.00 Lakhs for working capital requirements.

₹71.00 Lakhs for general corporate purposes.

Financial Performance and Analysis

NeoPolitan Pizza has demonstrated steady financial growth over the past three fiscal years, with revenues increasing from ₹1,630.82 lakhs in FY2022 to ₹4,401.07 lakhs in FY2024. The company's EBITDA also showed positive growth, rising to ₹323.82 lakhs in FY2024, alongside a profit after tax of ₹210.72 lakhs.

For the IPO, NeoPolitan Pizza is issuing shares with a pre-issue EPS of ₹1.92 and a post-issue EPS of ₹1.23. The pre-issue P/E ratio stands at 10.41x, while the post-issue P/E ratio is 16.26x, compared to the industry average of 48.97x. The company boasts a ROCE of 17.06% and a RoAE of 14.08%, suggesting a fair pricing of the IPO.

Considering the financial performance and current market conditions, investors are advised to approach the NeoPolitan Pizza and Foods Limited IPO with caution, as the GMP indicates limited potential for immediate listing gains.

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