Neopolitan Pizza, known for its take-out and delivery services, specializes in crafting delicious pizzas using top-quality ingredients. Established with a vision to cater to the food needs of customers, the company also engages in the trading of agricultural commodities, including wheat, rice, tomatoes, and onions. With a commitment to quality and service, Neopolitan Pizza is set to launch its IPO to raise funds for expansion.

The Neopolitan Pizza IPO is a fixed price issue amounting to ₹12 crores, consisting entirely of a fresh issue of 60 lakh shares. The subscription period for this IPO opens on September 30, 2024, and will close on October 4, 2024. Investors can look forward to the allotment being finalized on October 7, 2024, with shares listed on the BSE SME on October 9, 2024.

The share price for the Neopolitan Pizza IPO is set at ₹20 per share, with a minimum lot size of 6,000 shares. This means retail investors will need to invest a minimum of ₹1,20,000, while High-Net-Worth Individuals (HNIs) will be required to purchase a minimum of two lots, amounting to ₹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. MNM Stock Broking Private Limited is the sole market maker for Neopolitan Pizza.

As of September 30, 2024, the Grey Market Premium (GMP) for Neopolitan Pizza is expected to be ₹0, indicating a cautious market sentiment based on the company's financial performance. It's important to note that no real trading occurs based on the GMP, and potential investors should be aware that it solely reflects the unorganized demand and supply of shares.

Real-time updates on the live subscription status of the Neopolitan Pizza IPO reveal that it has been subscribed 0.79 times on its first day of the subscription period. Investors can monitor this status at the BSE for the most accurate information.

To check the allotment status, investors can follow these steps:

Visit 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 check your allotment status.

The proceeds from this IPO will be utilized for several key objectives:

₹708 lakhs for the expansion of their retail network by launching 16 new Quick Service Restaurants (QSR).

₹26 lakhs for security deposits and advance rent.

₹13 lakhs for brokerage charges.

₹352 lakhs to meet working capital requirements.

₹71 lakhs for general corporate purposes.

The promoters, Mukund Purohit and Arti Mukund Purohit, bring over 15 years of experience in the Quick Service Restaurants (QSR) industry and the food and beverage sector. Their expertise and innovative business strategies have driven the company’s growth and customer satisfaction.

Financially, Neopolitan Pizza has shown impressive growth, with revenue in FY2024 reaching ₹4,401.07 lakhs, a significant increase from ₹2,004.61 lakhs in FY2023 and ₹1,630.82 lakhs in FY2022. The company's EBITDA figures reflect this upward trend, with ₹323.82 lakhs in FY2024 compared to ₹225.93 lakhs in FY2023 and ₹92.76 lakhs in FY2022. The Profit After Tax has also grown, showing a strong fiscal health with ₹210.72 lakhs in FY2024.

For investors considering the Neopolitan Pizza and 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 stands at 10.41x, while the post-issue P/E ratio is 16.26x, against an industry P/E ratio of 48.97x. The ROCE for FY24 is 17.06%, and the ROAE is 14.08%, indicating a fairly priced IPO based on market standards.

Given the financial performance and valuation of the IPO, we recommend that risky investors approach the Neopolitan Pizza and Foods Limited IPO with caution. It may be more suitable for investors looking for longer-term growth rather than immediate listing gains.

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