Neopolitan Pizza, known for its specialty in take-out and delivery of pizzas made from the freshest and top-quality ingredients, is also involved in the trading of agricultural commodities. The company has a diverse product portfolio, dealing in essential items such as wheat, rice, tomatoes, onions, and more.

The IPO for Neopolitan Pizza is a Fixed Price Issue totaling ₹12.00 crores, entirely consisting of a Fresh Issue of 60.00 lakh shares. The subscription period for this IPO runs from September 30, 2024, to October 04, 2024, with the allotment expected to be finalized on October 07, 2024. Following this, the shares are tentatively set to be listed on the BSE SME by October 09, 2024.

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

The book-running lead manager for this IPO is TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED, 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.

As of October 04, 2024, the live subscription status indicated that the Neopolitan Pizza IPO was subscribed 30.14 times on its final day, reflecting robust interest from the market. Investors keen to check their allotment status can do so through a straightforward process involving the registrar’s website.

The funds raised from the IPO will be utilized for several objectives, including:

₹708.00 lakhs for expanding 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 to meet working capital requirements.

₹71.00 lakhs for general corporate purposes.

Neopolitan Pizza is helmed by promoters Mukund Purohit and Arti Mukund Purohit, who bring over 15 years of experience in the Quick Service Restaurants (QSR) and Food & Beverages industries. Their innovative business strategies, in-depth knowledge, and effective management have allowed the company to serve its customers proficiently.

From a financial standpoint, Neopolitan Pizza has shown significant growth over the years. The company’s revenue for Fiscal 2024 reached ₹4,401.07 lakhs, compared to ₹2,004.61 lakhs in Fiscal 2023 and ₹1,630.82 lakhs in Fiscal 2022. The EBITDA for these years was ₹323.82 lakhs, ₹225.93 lakhs, and ₹92.76 lakhs, respectively. The Profit After Tax (PAT) figures also reflect this upward trend, with profits climbing to ₹210.72 lakhs in FY2024, up from ₹116.80 lakhs in FY2023 and ₹18.44 lakhs in FY2022.

For the Neopolitan Pizza IPO, the company has set 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’s ROCE for FY24 is 17.06%, and ROAE stands at 14.08%, indicating that the IPO is reasonably priced.

However, it's essential to note that the Grey Market Premium (GMP) for Neopolitan Pizza and Foods currently indicates 0% potential listing gains. Given the company's financial performance and IPO valuation, it is advisable for risk-sensitive investors to exercise caution and consider avoiding the Neopolitan Pizza IPO for immediate listing gains or long-term investments.

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