NeoPolitan Pizza and Foods Limited is coming up with an IPO with a fresh issue of 60,00,000 shares worth INR 12.00 crores. The company aims to expand the network by launching 16 QSRs, to provide for security deposit, advance rent and brokerage charges, to fund the working capital requirement, and fund for general corporate purposes.

NeoPolitan Pizza and Foods IPO – Important Dates

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NeoPolitan Pizza and Foods Limited IPO  – Company Profile 

Neopolitan Pizza And Foods Limited operates in two segments, namely the restaurant business and the trading of agricultural commodities. In the restaurant business, the company owns and operates its own restaurants as well as operates through a franchise model. The company offers Neopolitan-style pizza, which is a traditional Italian pizza made with fresh ingredients.

The company deals in products such as wheat, rice, tomatoes, onions, and other such products. The trading segment of the business aims to source high-quality agricultural products from trusted suppliers and sell them to customers at competitive prices. 

Further, Neopolitan Pizza And Foods Limited has strategically expanded its global footprint through an investment of $87,500 in its wholly-owned subsidiary Neoindian Pizza Inc. located in the USA.

Promoters of the company, Mukund Purohit and Arti Mukund Purohit have more than 15 years of experience in the Quick Service Restaurants (QSR) Industry as well as the Food & Beverages industry and with their innovative business ideas, in-depth knowledge, and excellent management skills, the company has served the customers proficiently

NeoPolitan Pizza and Foods Ltd IPO Fundamental Analysis 

NeoPolitan Pizza and Foods has demonstrated significant growth in both revenue and profitability, with a marked improvement in EPS and RoNW over the years. The increase in equity, stable liability levels, and rising NAV per share further underline its strengthening financial health.

Revenue and Expenses:

• Revenue has grown from ₹1,629.57 lakhs in 2022 to ₹4,400.36 lakhs in 2024, representing a significant increase.
• Expenses also increased, from ₹1,538.15 lakhs in 2022 to ₹4,075.12 lakhs in 2024, but the growth in revenue has outpaced the rise in expenses, which is a positive indicator.

Profit and EPS:

• Profit after tax improved significantly from ₹18.44 lakhs in 2022 to ₹210.72 lakhs in 2024, showing the company’s ability to convert revenue into profit.
• Diluted EPS has risen from ₹0.51 in 2022 to ₹1.92 in 2024, indicating increasing earnings per share, which is a favorable trend for shareholders.

Equity and Return on Net Worth (RoNW):

• Equity increased from ₹807.39 lakhs in 2022 to ₹1,592.33 lakhs in 2024, showing growth in shareholder capital.
• RoNW has improved from 2.28% in 2022 to 13.15% in 2024, suggesting better returns for equity holders as profitability rises.

NAV per Equity Share:

• NAV per share has steadily increased from ₹9.27 in 2022 to ₹14.46 in 2024, reflecting a rise in the company’s net asset value per share and enhanced shareholder value.

Assets and Liabilities:

• Total assets have grown from ₹1,300.94 lakhs in 2022 to ₹2,040.50 lakhs in 2024, indicating expansion in the company’s asset base.
• Total liabilities have remained relatively stable, increasing only slightly from ₹493.55 lakhs in 2022 to ₹448.17 lakhs in 2024, which suggests prudent management of financial obligations.

NeoPolitan Pizza and Foods IPO Financial Analysis

NeoPolitan Pizza and Foods Limited IPO Peer Comparison

Neopolitan Pizza and Foods Limited has a face value of ₹10, a P/E ratio of 10.51, EPS of ₹1.90, and RoNW of 13.15%. Restaurant Brands Asia Ltd and Barbeque-Nation Hospitality Ltd show negative EPS and RoNW.

NeoPolitan Pizza and Foods Ltd IPO Objective

The main objective of NeoPolitan Pizza and Foods IPO is to use funds for 16 new Neapolitan Pizza restaurants (INR 7.08 crores), security deposits and rent (INR 0.26 crores), brokerage (INR 0.13 crores), working capital (INR 3.52 crores), and general purposes.

1. To start 16 new quick service restaurant: To promote the brand further and meet the need for the growth as the market expands, the company intends to open 16 Quick Service Restaurants (QSR) for the brand ‘NEOPOLITAN PIZZA’ on Company Owned Company Operated (COCO) model. For the said purpose the company plans to utilise INR 7.08 crores. 

2. To meet the security deposit, advance rent and brokerage charges:  The company plans to utilise INR 0.26 crores for security deposit and advance rent purpose and INR 0.13 crores for brokerage charges. 

3. To meet the working capital requirement: With additional outlets, the working capital requirement of the company will also increase. Hence the company plans to utilise INR 3.52 crores for the said purpose. 

4. General Corporate Purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations. 

NeoPolitan Pizza and Foods IPO Risks And Challenges

NeoPolitan Pizza and Foods faces relating to COVID-19 pandemic or similar health threats which could negatively impact the business and financial results. The QSR sector is sensitive to economic changes, and downturns may reduce dining out. Intense competition in QSR and agricultural commodities trading poses additional risks.

1. The COVID-19 pandemic, or a similar public health threat, could adversely affect the 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. 

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

4. 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 failure to compete effectively could have a negative impact on the financial performance.

NeoPolitan Pizza and Foods Ltd IPO – Industry & Market Potential

According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. India’s agricultural and processed food products exports stood at US$ 43.37 billion in FY23 (April 2022-January 2023). 

According to a report, the market for food services in India is predicted to increase from US$ 41.1 billion in 2022 to US$ 79.65 billion by 2028, with a CAGR of 11.19%. The country’s restaurant and food service market is split into two segments, with the unorganised segment holding the lion’s share of the market, according to the report, which also noted that the organised sector expanded rapidly between 2014 and 2020. The market for quick service restaurants (QSRs) in the country is predicted to be worth US$ 690.21 million in 2022 and US$ 1069.3 million in 2027, rising at a CAGR of 9.15%, according to the report’s additional findings.

NeoPolitan Pizza and Foods Limited IPO – Type of Offer

NeoPolitan Pizza and Foods Limited is launching an IPO with a fresh issue of 60,00,000 shares valued at INR 12.00 crores. The company intends to expand its network by opening 16 Quick Service Restaurants (QSRs), cover security deposits, advance rent, brokerage charges, and support working capital requirements and general corporate purposes.

NeoPolitan Pizza and Foods  IPO Offer Size

The offer size is 60,00,000 shares worth INR 12.00 crores for NeoPolitan Pizza and Foods Limited’s IPO. The company aims to expand its network by launching 16 Quick Service Restaurants (QSRs), cover security deposits, advance rent, brokerage charges, and support working capital and general corporate purposes.

NeoPolitan Pizza and Foods  Limited IPO Allotment Structure

NeoPolitan Pizza and Foods Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 300,000 shares for Market Makers. 

• Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.

• Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs. 

• Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 300,000 shares for this purpose. 

Read more about NeoPolitan Pizza and Foods  IPO Allotment Status

How to apply for the NeoPolitan Pizza and Foods  IPO?

To apply for the NeoPolitan Pizza and Foods Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the NeoPolitan Pizza and Foods Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the NeoPolitan Pizza and Foods Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How do you check NeoPolitan Pizza and Foods IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the NeoPolitan Pizza and Foods Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the NeoPolitan Pizza and Foods Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the NeoPolitan Pizza and Foods Limited IPO:

● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the NeoPolitan Pizza and Foods Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

NeoPolitan Pizza and Foods Ltd IPO Offer Registrar

The registrar for the NeoPolitan Pizza and Foods Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Bigshare Services Private Limited

S6-2, 6th Floor, Pinnacle Business Park, 

Andheri (East) Mumbai – 400093.

Telephone: +91 22 6263 8200;

Email: [email protected]

Website: www.bigshareonline.com

 NeoPolitan Pizza and Foods IPO  – FAQs

1. What is the allotment date of the NeoPolitan Pizza and Foods IPO? 

The allotment date of the NeoPolitan Pizza and Foods Limited IPO is October 7, 2024. 

2. What is the price band of the NeoPolitan Pizza and Foods IPO? 

The price band of the issue is INR 20 per share. 

3. What is the size of the NeoPolitan Pizza and Foods IPO? 

The offer size is 60,00,000 shares worth INR 12.00 crores for NeoPolitan Pizza and Foods Limited’s IPO. The company aims to expand its network by launching 16 Quick Service Restaurants (QSRs), cover security deposits, advance rent, brokerage charges, and support working capital and general corporate purposes.

4. What is the listing date of the NeoPolitan Pizza and Foods IPO? 

The listing date of NeoPolitan Pizza and Foods Limited’s IPO is October 9, 2024.