Neopolitan Pizza is known for its take-out and delivery services, specializing in pizza made from fresh, high-quality ingredients. Additionally, the company is involved in the trading of agricultural commodities, dealing with products such as wheat, rice, tomatoes, and onions. This dual focus enhances its market presence in both the food and agricultural sectors.

The upcoming Neopolitan Pizza IPO comprises a Fixed Price Issue amounting to ₹12.00 Crores, offering 60.00 lakh shares. The subscription period is set to open on September 30, 2024, and will close on October 04, 2024. Investors can expect the allotment to be finalized around October 07, 2024, with shares listed on the BSE SME on or about October 09, 2024.

The share price for the Neopolitan Pizza IPO is set at ₹20 per equity share, requiring retail investors to invest a minimum of ₹1,20,000 for one lot of 6,000 shares. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,40,000 for 2 lots (12,000 shares).

TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED is the book-running lead manager for this IPO, while BIGSHARE SERVICES PRIVATE LIMITED serves as the registrar. MNM Stock Broking Private Limited is the sole market maker for this issue.

Live Subscription Status

As of 11:40 AM on October 01, 2024, the live subscription status for the Neopolitan Pizza IPO shows that it has been subscribed 1.52 times on its second day of the subscription period. Investors can check the real-time subscription status on the BSE website.

Allotment Date and Procedure

The allotment date for the Neopolitan Pizza IPO is scheduled for October 07, 2024. Investors can check their allotment status through the following steps:

Visit the IPO allotment status page.

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

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

Submit the information to view your allotment status.

Objectives of the IPO

Proceeds from the Fresh Issue will be utilized for several strategic objectives:

₹708.00 Lakhs for expanding the 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.

Financial Performance Overview

Neopolitan Pizza has shown significant financial growth over recent years. In Fiscal 2024, the company's revenue reached ₹4401.07 Lakhs, compared to ₹2004.61 Lakhs in Fiscal 2023 and ₹1630.82 Lakhs in Fiscal 2022. The EBITDA figures were ₹323.82 Lakhs, ₹225.93 Lakhs, and ₹92.76 Lakhs for the respective years, while the Profit After Tax stood at ₹210.72 Lakhs, ₹116.80 Lakhs, and ₹18.44 Lakhs, indicating robust profitability growth.

The company 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 is 10.41x, and the post-issue P/E ratio is 16.26x, compared to the industry average of 48.97x. The company's Return on Capital Employed (ROCE) for FY24 is 17.06%, and the Return on Equity (ROE) is 14.08%, indicating a reasonably priced IPO.

Investment Recommendation

The Grey Market Premium (GMP) for Neopolitan Pizza shows potential listing gains of 0%. Considering the financial performance and valuation metrics, we recommend that risky investors avoid the Neopolitan Pizza and Foods Limited IPO for both listing gains and long-term investment purposes.

In conclusion, prospective investors should conduct thorough research and assess market conditions before considering engagement with the Neopolitan Pizza IPO. 

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