NeoPolitan Pizza and Foods Limited is launching its IPO with a fixed price issue worth ₹12 crore. This offering is entirely a fresh issue of 60 lakh shares, each priced at ₹20. The company operates in two main segments: restaurant operations and agricultural commodity trading.
The IPO opens for subscription on September 30, 2024, and closes on October 4, 2024. Investors can apply for a minimum lot size of 6,000 shares, requiring a minimum investment of ₹1,20,000 for retail investors. High Net-Worth Individuals (HNIs) must invest in a minimum of 12,000 shares, amounting to ₹2,40,000.
The allotment date is expected to be finalised on October 7, 2024, and the listing on the BSE SME is scheduled for October 9, 2024. Turnaround Corporate Advisors Private Limited is acting as the book running lead manager, with Bigshare Services Pvt Ltd serving as the registrar for the issue. Mnm Stock Broking will be the market maker for the NeoPolitan Pizza and Foods IPO.
Industry Outlook:
- India's agricultural sector is projected to grow to US$ 24 billion by 2025. It plays a crucial role in the nation's economy, contributing 18.3% of India's GDP in 2022-23.
- The Indian food processing industry, accounting for 32% of the country’s total food market, is poised for significant growth. By 2025, the processed food market is expected to reach US$ 470 billion.
NeoPolitan Pizza and Foods IPO Objectives
The company plans to allocate the net proceeds from the issuance to the following purposes:
- Utilise funds for opening 16 new Quick Service Restaurants (QSR) to broaden its presence.
- Funds will be allocated to secure deposits and pay advance rent for new restaurant locations.
- A portion of the funds will cover brokerage costs related to the new retail outlets.
- Allocate funds toward meeting the company’s working capital needs.
- The remaining funds will be allocated towards general corporate purposes.
About NeoPolitan Pizza and Foods Limited
NeoPolitan Pizza and Foods Limited, originally incorporated as JRM Fertilizer Private Limited in 2011, transitioned into the food industry under the name Neopolitan Pizza Private Limited in 2012. The company’s core business is built around offering Italian-style Neopolitan pizzas, tailored to Indian tastes. Its menu has expanded from a single pizza option to a full range of Italian fusion dishes, including soups, salads, pasta, and desserts.
The company's popular "All You Can Eat" buffet concept appeals to families and children, making it a unique player in the Indian quick-service restaurant (QSR) sector. The company also engages in agricultural commodity trading, dealing in products like wheat, rice, and vegetables. This dual business model allows NeoPolitan Pizza and Foods Limited to diversify its revenue streams by leveraging its food industry expertise.
In 2024, the company rebranded as Neopolitan Pizza and Foods Limited and continues to grow domestically and internationally. It has expanded into the USA through its subsidiary, Neoindian Pizza Inc., aiming to capture emerging global markets. Led by promoters Mukund and Arti Mukund Purohit, the company continues to evolve, combining expertise in both the QSR and agricultural sectors.
Peer Details
According to RHP, the following are the listed peers of NeoPolitan Pizza and Foods Limited:
- Restaurant Brands Asia Limited
- Barbeque-Nation Hospitality Limited
How To Check the Allotment Status of the NeoPolitan Pizza and Foods Limited IPO?
A: Steps to check IPO allotment status on Angel One’s app:
- Log in to the Angel One app.
- Go to the IPO Section and then to IPO Orders.
- Select the individual IPO that you had applied for and check the allotment status.
- Angel One will notify you of your IPO allotment status via push notification and email.
How To Aapply for NeoPolitan Pizza and Foods IPO Online?
- Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
- Locate the IPO Section: Navigate to the 'IPO' section on the platform.
- Select IPO: Find and select the NeoPolitan Pizza and Foods IPO from the list of open IPOs.
- Enter the Lot Size: Specify the number of lots you want to bid for.
- Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
- Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.
Contact Details of NeoPolitan Pizza and Foods IPO
Registered office: 434 & 435, SWC Hub, Opp. Rajpath Complex, Vasna Bhayli Road, Vadodara – 391410, Gujarat, India
Phone: +91 95740 00428
E-mail: csneo@neopolitanpizza.in
Financial Performance of NeoPolitan Pizza and Foods Limited
| Particulars | Year ending on March 31, 2024 | Year ending on March 31, 2023 | Year ending on March 31, 2022 |
|---|---|---|---|
| Revenue from Operation (in ₹ lakh) | 4400.36 | 2003.54 | 1629.57 |
| Profit After Tax (PAT) (in ₹ lakh) | 209.25 | 116.80 | 18.44 |
| Current Ratio (x) | 3.92 | 4.49 | 4.39 |
| Net Worth (in ₹ lakh) | 1590.86 | 1381.61 | 807.39 |
| EBITDA (in ₹ lakh) | 323.82 | 225.63 | 92.45 |
| Return on Equity (%) | 13.23 | 8.45 | 2.28 |
| Return on Capital Employed (RoCE) (%) | 17.06 | 12.66 | 4.65 |
| Earnings Per Share (in ₹) | 1.90 | 1.34 | 0.51 |
Know before investing
Strengths
6Authentic Neopolitan-style pizza offers a unique product in India.
Diverse menu caters to various tastes, including vegetarian and vegan options.
Strong brand identity drives customer loyalty and repeat business.
Franchise model allows rapid expansion with low capital investment.
Technology-driven operations enhance customer experience and efficiency.
Synergy between restaurants and agricultural trading boosts brand and reach.
Risks
6Economic downturns may reduce consumer spending on dining out.
Fluctuations in agricultural commodity prices could affect profitability.
Franchisees failing to maintain standards could harm brand reputation.
Intense competition in QSR and trading may impact market share.
Failure to comply with food safety regulations could lead to penalties.
Pandemics or similar public health crises can severely disrupt operations.
