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

The Neopolitan Pizza IPO, a Fixed Price Issue amounting to ₹12.00 Crores, consists entirely of a Fresh Issue of 60.00 Lakh Shares.

IPO Subscription Period: Opens on September 30, 2024, and closes on October 4, 2024.

Allotment Date: Expected on or about October 7, 2024.

Tentative Listing Date: Shares will be listed on the BSE SME on or about October 9, 2024.

Pricing and Investment Requirements

The share price for the Neopolitan Pizza IPO is set at ₹20 per share, with a minimum lot size of 6,000 shares.

Minimum investment for Retail Investors: ₹1,20,000.

Minimum investment for High-Net-Worth Individuals (HNIs): 2 lots (12,000 shares), amounting to ₹2,40,000.

TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED is the book-running lead manager, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar for the issue. MNM Stock Broking Private Limited acts as the sole Market Maker for Neopolitan Pizza.

Live Subscription Status

As of 6:00 PM on October 4, 2024, the live subscription status for Neopolitan Pizza and Foods Limited IPO shows a subscription rate of 30.14 times on the final day of the subscription period. Investors can check the live subscription status on the BSE website for real-time updates.

How to Check Allotment Status

The allotment date for the Neopolitan Pizza IPO is set for October 7, 2024. Investors can check their allotment status by following these steps:

Navigate to the IPO allotment status page.

Select Neopolitan Pizza and Foods Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit the details to view your allotment status.

Objectives of the IPO

The proceeds from the Fresh Issue will be allocated towards several key objectives:

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

₹26.00 Lakhs for security deposit and advance rent.

₹13.00 Lakhs for brokerage charges.

₹352.00 Lakhs to meet working capital requirements.

₹71.00 Lakhs for general corporate purposes.

Company Overview

Neopolitan Pizza and Foods Limited operates primarily in two segments: the restaurant business and the trading of agricultural commodities. In the restaurant sector, they own and operate their outlets and also franchise their model. They offer Neopolitan-style pizza, which is characterized by its use of fresh ingredients and a variety of toppings, including gluten-free and vegetarian options.

The company’s agricultural commodity trading segment sources high-quality products from reliable suppliers, aiming to provide competitive prices to customers. Neopolitan Pizza’s strategic approach allows it to diversify its revenue streams effectively.

Agricultural Sector Overview

India's agriculture sector plays a pivotal role in the economy, serving as a primary livelihood source for about 55% of its population. With the largest area planted to wheat, rice, and cotton, India is a leading global agricultural player.

The sector's potential for growth is significant. Consumer spending is projected to grow post-pandemic, and the Indian food industry is set for expansion, particularly within the food processing segment. As per estimates, the Indian agricultural sector is expected to reach US$ 24 billion by 2025, with robust growth in exports.

Quick Service Restaurant (QSR) Industry Insights

The Indian food services market is anticipated to grow from US$ 41.1 billion in 2022 to US$ 79.65 billion by 2028, with a CAGR of 11.19%. The QSR sector specifically is projected to grow significantly, with expectations of an increase in demand and penetration, fueled by favorable demographics and urbanization trends.

According to ICRA, the QSR sector in India is set for a 20-25% growth in the current fiscal year, driven by market expansion and changing consumer preferences. Major players in the sector are expected to invest heavily in new store openings, indicating strong market confidence.

Competitive Strengths of Neopolitan Pizza and Foods Limited

Diverse Segment Focus: Operating in both the QSR and agricultural commodity trading segments.

Quality Assurance: Commitment to quality across all franchise outlets.

Robust Supply Chain: Strong relationships with suppliers ensuring high-quality ingredients.

Strategic Initiatives

Quality Focus: Emphasizing high-quality ingredients and consistency across outlets.

Expansion Plans: Aggressive growth strategy to increase the number of QSRs.

Brand Strengthening: Efforts to build a strong brand identity.

Menu Innovation: Continuous development of new and diverse menu options.

Technological Adoption: Embracing technology for operational efficiency.

Relationship Management: Building strong partnerships within the industry.

Risk Factors

Economic Sensitivity: The QSR segment is vulnerable to economic downturns affecting consumer spending.

Past Delisting: Previous listing on the NSE Emerge ITP platform may raise concerns.

Supply Chain Risks: Commodity trading exposes the company to supply chain vulnerabilities.

Regulatory Challenges: Operating in highly regulated industries can pose compliance risks.

Technological Dependence: Heavy reliance on technology for operations and customer engagement.

Geographical Concentration: A significant portion of sales from specific regions may affect overall performance.

Product Acceptance: New food offerings may not always meet consumer expectations.

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