NeoPolitan Pizza and Foods is launching an IPO with a fixed price issue of ₹12.00 crores, consisting entirely of a fresh issue of 60 lakh shares. The IPO will be open for subscription from September 30, 2024, to October 4, 2024. The allotment is expected to be finalized on October 7, 2024, and the shares are tentatively set to list on the BSE SME on October 9, 2024.
The issue price is ₹20 per share, with a minimum application lot size of 6,000 shares, requiring a minimum investment of ₹120,000 for retail investors. HNI investors must apply for at least 2 lots (12,000 shares), amounting to ₹240,000.
Turnaround Corporate Advisors Private Limited is the lead manager for the IPO, with Bigshare Services Pvt Ltd acting as the registrar. Mnm Stock Broking will serve as the market maker.
Below are the details of NeoPolitan Pizza and Foods IPO Details, Timeline, Lot Size, Anchor Investor, and Promoter Holding.
Track All IPOs opening and closing today on our comprehensive list of IPO Watchlist 2024!
NeoPolitan Pizza and Foods IPO Details
| IPO Date | September 30, 2024 to October 4, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price | ₹20 per share |
| Lot Size | 6000 Shares |
| Total Issue Size | 6,000,000 shares (aggregating up to ₹12.00 Cr) |
| Fresh Issue | 6,000,000 shares (aggregating up to ₹12.00 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share holding pre issue | 11,000,000 |
| Share holding post issue | 17,000,000 |
| Market Maker portion | 300,000 shares |
NeoPolitan Pizza and Foods IPO Timeline
| IPO Open Date | Monday, September 30, 2024 |
| IPO Close Date | Friday, October 4, 2024 |
| Basis of Allotment | Monday, October 7, 2024 |
| Initiation of Refunds | Tuesday, October 8, 2024 |
| Credit of Shares to Demat | Tuesday, October 8, 2024 |
| Listing Date | Wednesday, October 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on October 4, 2024 |
NeoPolitan Pizza and Foods IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 6000 | ₹120,000 |
| Retail (Max) | 1 | 6000 | ₹120,000 |
| HNI (Min) | 2 | 12,000 | ₹240,000 |
NeoPolitan Pizza and Foods IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| Anchor Investor Shares Offered | – |
| Market Maker Shares Offered | 3,00,000 (5%) |
| Other Shares Offered | 28,50,000 (47.5%) |
| Retail Shares Offered | 28,50,000 (47.5%) |
| Total Shares Offered | 60,00,001 (100%) |
NeoPolitan Pizza and Foods IPO Financial Information
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | |||||||||||||||||||||||||||
| Assets | 2,040.5 | 1,811.58 | 1,300.94 | |||||||||||||||||||||||||||
| Revenue | 4,401.07 | 2,004.61 | 1,630.82 | |||||||||||||||||||||||||||
| Profit After Tax | 210.72 | 116.8 | 18.44 | |||||||||||||||||||||||||||
| Net Worth | 1,590.86 | 1,381.61 | 807.39 | |||||||||||||||||||||||||||
| Reserves and Surplus | 492.33 | 281.61 | -63.9 | |||||||||||||||||||||||||||
| Total Borrowing | 59.19 | 68.82 | 259.45 | |||||||||||||||||||||||||||
| Amount in ₹ Lakhs | ||||||||||||||||||||||||||||||
NeoPolitan Pizza and Foods IPO Review
NPFL began in 2011 under the name JRM Fertilizer Pvt. Ltd., but rebranded in 2012 to align with its expansion into the food industry. After going public in 2014 and listing on NSE’s Institutional Trading Platform, the company voluntarily delisted in 2018 due to the lack of tangible benefits and high compliance costs. NPFL operates in two main segments: the restaurant business and agricultural commodity trading. In the restaurant segment, the company offers Neopolitan-style pizzas, with a family-friendly and kid-oriented model, and has embraced a buffet concept, providing a wide range of Italian-inspired dishes. Additionally, NPFL sources and sells high-quality agricultural products like wheat and tomatoes. Their strategy revolves around maintaining high standards in both their food and trading segments.
NPFL has made significant strides in expanding globally, including investing in its U.S. subsidiary, Neoindian Pizza Inc. This investment highlights their ambition to tap into international markets. Domestically, as of March 2024, the company operates 21 restaurants across India and plans to add 25 new quick-service restaurants (QSRs) using IPO funds. Their workforce includes 33 employees.
The upcoming IPO aims to raise ₹12 crore by offering 6 million equity shares at ₹20 each, representing 35.29% of the post-IPO capital. The funds will be allocated to new QSRs, security deposits, brokerage fees, working capital, and general corporate purposes. The post-IPO market capitalization is estimated at ₹34 crore. The company has shown steady financial growth with total income rising from ₹16.31 crore in FY22 to ₹44.01 crore in FY24, and profits growing from ₹0.18 crore to ₹2.11 crore over the same period.
However, while the company’s financial performance is improving, the issue appears fully priced at a P/E ratio of 16.13 for FY24 and 28.99 for FY23. Investors should also be aware of the highly competitive environment NPFL operates in. The company has not paid any dividends yet but may adopt a dividend policy post-listing based on performance. Given the IPO’s pricing and the company’s track record, long-term investors might consider moderate allocations to this offering for future growth.