SME · BSESubscribed: 31.73×
Neopolitan Pizza and Foods Limited

Neopolitan Pizza and Foods Limited

Neopolitan Pizza and Foods Limited(NPFL)

Total Shares

60,00,000

Issue Size

₹12.00 Cr

Price Band

20 – ₹20

Lot Size

6000 shares

Min. Investment

1,20,000

Max. Investment

1,20,000

Open Date

30 Sep, 2024

Close Date

04 Oct, 2024

Allotment

07 Oct, 2024

Listing

09 Oct, 2024

Announced

30 Sep, 2024

Opening Date

30 Sep, 2024

Closing Date

04 Oct, 2024

Basis of Allotment

07 Oct, 2024

Initiation of Refunds

08 Oct, 2024

Credit of Shares

08 Oct, 2024

Listing Date

09 Oct, 2024

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About Neopolitan Pizza and Foods Limited IPO

Incorporated in February 2011, Neopolitan Pizza And Foods Limited has two segments: restaurant operations and agricultural commodity trading. 

The company owns and operates restaurants and also operates through a franchise model. It specializes in Neapolitan-style pizza made with fresh ingredients and offers a variety of toppings, including gluten-free and vegetarian options.

Neapolitan Pizza is ISO 22000:2018 certified and offers a variety of soups, salads, bread, pasta,

Neopolitan Pizza and Foods Limited IPO Share Price and Issue Size

Issue Breakdown

Total Issue60,00,000 shares₹12.00 Cr
Fresh Issue60,00,000 shares₹12.00 Cr
Offer for Sale0 shares

Shareholding

Pre-Issue1,10,00,000
Post-Issue1,70,00,000

Dilution: 54.5% increase in shares

Neopolitan Pizza and Foods Limited IPO Financials Health

Neopolitan Pizza and Foods Limited IPO Lot Size

ApplicationLotsSharesAmount
HNI Minimum2120002,40,000
Retail Minimum160001,20,000
Retail Maximum160001,20,000

(All values in CR)

Neopolitan Pizza and Foods Limited IPO Valuation

MetricValue
Debt/Equity0.04
EPS Post IPO1.24
EPS Pre IPO1.92
P/E Post IPO16.14
P/E Pre IPO10.44
PAT Margin (%)4.75
ROCE17.17%
ROE13.23%
RoNW13.15%

(All values in CR)

Strength & Risk of Neopolitan Pizza and Foods Limited IPO

+Strengths

1. Established and proven track record.

2. Leveraging the experience of our Promoters.

3. Experienced management team and a motivated and efficient work force.

4. Cordial relations with our customers.

5. Quality Assurance & Control.

!Risks

1. The COVID-19 pandemic, or a similar public health threat, could adversely affect its business, financial condition, and results of operations.

2. The QSR segment is particularly sensitive to changes in the economy, and any economic downturn could result in decreased customer spending on dining out. Similarly, fluctuations in the market prices of agricultural commodities could impact its trading segment's profitability and financial performance.

3. Its promoter/director had been disqualified as a Director in the past.

4. Its Promoter Mr. Mukund Purohit and Mrs. Arti Mukund Purohit was director of a company which has been struck off.

5. The Company previously got listed on Emerge ITP Platform of National Stock Exchange of India Limited (NSE) and the same stood voluntarily delisted.

6. The QSR and agricultural commodities trading industries are highly competitive, with numerous well-established players in the market. The company faces intense competition from local and international competitors, and any failures to compete effectively could have a negative impact on its financial performance.

7. Its QSR segment is subject to food safety and quality regulations, and any failures to comply with these regulations could result in legal penalties, negative publicity, and loss of customer trust. Similarly, any quality issues with the agricultural commodities traded could lead to reputational damage and financial losses.

8. Its franchise model for the company QSR segment involves partnering with third-party franchisees, and any failures by these franchisees to maintain brand standards or operate effectively could damage its brand image and reputation.

9. Neopolitan Pizza And Foods Limited's agricultural commodity trading segment is subject to several risks associated with its supply chain. The company sources various agricultural commodities such as wheat, rice, tomatoes, onions, and other products from different regions, and any disruption in the supply chain could have a significant impact on its operations and financial performance.

10. The Company had negative cash flow in recent fiscals, details of which are given below. Sustained negative cash flow could adversely impact its business, financial condition and results of operations.

Neopolitan Pizza and Foods Limited IPO Subscription Status

Investor CategorySubscription (times)Shares OfferedShares bid forTotal Amount (Rs Cr.)
HNI20.8328,50,0005,93,58,000118.72
Market Maker1.003,00,0003,00,0000.6
Retail42.6228,50,00012,14,76,000242.95
Total31.7357,00,00018,08,34,000361.67

Neopolitan Pizza and Foods Limited IPO GMP

00.0%

Last updated 27 Sep, 2024 · Source: aggregated grey-market dealers

DateIPO PriceGMPSub2 SaudaEst. ListingEst. ProfitUpdated
27 Sep, 202420₹0--₹20 (0.00%)-27 Sep, 2024
30 Sep, 202420₹0--₹20 (0.00%)-30 Sep, 2024
01 Oct, 202420₹0--₹20 (0.00%)-01 Oct, 2024
03 Oct, 202420₹0--₹20 (0.00%)-03 Oct, 2024
04 Oct, 202420₹0--₹20 (0.00%)-04 Oct, 2024
06 Oct, 202420₹0--₹20 (0.00%)-06 Oct, 2024
07 Oct, 202420₹0--₹20 (0.00%)-07 Oct, 2024

Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.

How to Apply for Neopolitan Pizza and Foods Limited IPO

1

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2

Go to IPO Section

Find Neopolitan Pizza and Foods Limited under the IPO section. Select it and enter your bid details — choose lot size and price (cut-off price recommended).

3

Enter UPI ID and Submit

Provide your UPI ID linked to your bank account and submit the application.

4

Approve Mandate on UPI App

Open your UPI app (Google Pay, PhonePe, Paytm, BHIM) and approve the IPO payment request.

5

Application Confirmed

Your funds will be blocked in your account until the IPO allotment process is completed.

NeoPolitan Pizza and Foods Limited IPO

Overview of NeoPolitan Pizza and Foods Limited IPO

NeoPolitan Pizza and Foods Limited is launching an initial public offering (IPO) with the aim of raising funds to support its expansion. This well-known food company is primarily recognized for bringing a fusion of traditional Italian pizzas with an Indian twist. NeoPolitan has a strong presence in the food and beverage industry, offering investors an opportunity to participate in its growth.

Key IPO Details:

  • Total Issue Size: 60,00,000 equity shares at ?20 per share.
  • Total Fund Raised: ?1,200.00 Lakhs.
  • Face Value: ?10 per share, with an issue price of ?20 (2x the face value).
  • Listing: BSE SME Platform.
  • Issue Opens: September 30, 2024.
  • Issue Closes: October 04, 2024.

Pros and Cons of NeoPolitan Pizza and Foods Limited IPO

Pros

  1. Established Brand Presence: NeoPolitan Pizza has a recognized brand in the food industry, offering a fusion of Indian and Italian flavors.
  2. Expansion Opportunity: Proceeds from the IPO will be used to scale operations and grow in new markets.
  3. IPO Focused on Retail Investors: A minimum of 50% of the shares are reserved for retail investors, offering a solid opportunity for individual investors.
  4. Experienced Leadership: Led by Mr. Mukund Purohit and Mrs. Arti Mukund Purohit, who have extensive experience in the food and restaurant industry.

Cons

  1. First-Time Public Offering: Since this is the company’s first IPO, it lacks a public market track record, which could pose a risk to new investors.
  2. SME Platform Listing: Listing on the SME platform could mean less liquidity and lower trading volumes compared to main board listings.
  3. Industry-Specific Risks: The food and beverage industry faces operational challenges like fluctuating ingredient costs, competition, and changes in consumer preferences.
  4. Volatility Concerns: As with any first-time public offering, market prices may experience volatility after listing, and the sustainability of high trading activity is uncertain.

Risk Factors

Market Uncertainty

As a first-time issuer, there is no assurance of sustained trading in NeoPolitan Pizza’s shares. The stock might face initial volatility, making it important for investors to proceed cautiously.

Industry Challenges

The food and beverage industry is subject to shifts in consumer preferences, competition, and rising costs, which can impact profitability. Additionally, the company’s future growth hinges on its ability to maintain quality while expanding.

Investment Considerations

Ideal for Long-Term and Retail Investors

This IPO is best suited for retail investors with an appetite for risk who are looking for long-term growth in the food and restaurant sector. With the brand’s growing recognition, there is potential for solid returns, but investors must also be prepared for market fluctuations.

Conclusion

The NeoPolitan Pizza and Foods Limited IPO offers a chance for investors to tap into India’s growing food and beverage market. With a well-established brand and plans for expansion, the company presents an attractive opportunity. However, risks related to market volatility and industry-specific challenges should be carefully considered.

FAQs About Neopolitan Pizza And Foods Limited Ipo

NeoPolitan Pizza and Foods Limited IPO will open on 30 Sep, 2024 and close on 04 Oct, 2024. Investors must apply within this period to participate.

The NeoPolitan Pizza and Foods Limited IPO price band is set between ₹20.00 and ₹20.00 per share. The minimum lot size is 6000, requiring an investment of at least ₹120000.00.

The NeoPolitan Pizza and Foods Limited IPO shares are expected to be listed on 09 Oct, 2024, subject to regulatory approvals and final allotment.

You can track your NeoPolitan Pizza and Foods Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID

The NeoPolitan Pizza and Foods Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.