NeoPolitan Pizza and Foods IPO: Issue Price at ₹20 per Share

Incorporated in February 2011, Neopolitan Pizza And Foods Limited operates in two segments: restaurant operations and agricultural commodity trading. The company owns and operates restaurants and also operates through a franchise model, specialising in Neapolitan-style pizza. As of 31st March 2024, the company operated 21 restaurants in over 16 cities, spanning 2 states and union territories in India. Neopolitan Pizza is ISO 22000:2018 certified and offers a variety of soups, salads, bread, pasta, hand-tossed pizza, and desserts.

The Objectives of the Issue

NeoPolitan Pizza and Foods Limited intends to utilise the Net Proceeds from the Issue towards the following objectives:

• Expansion of the Retail Network by launching 16 new Quick Service Restaurants
• Security Deposit and Advance Rent
• Brokerage Charges
• Working Capital Requirements
• General Corporate Expenses

Highlights of NeoPolitan Pizza and Foods IPO

NeoPolitan Pizza and Foods IPO is set to launch with a fixed price issue of ₹12.00 crores. The issue is entirely fresh. Here are the key details of the IPO:

• The IPO opens for subscription on 30th September 2024 and closes on 4th October 2024.
• The allotment is expected to be finalised on 7th October 2024.
• Refunds will be initiated on 8th October 2024.
• Credit of shares to Demat accounts is also expected on 8th October 2024.
• The company will tentatively list on BSE SME on 9th October 2024.
• The issue price is fixed at ₹20 per share.
• The fresh issue comprises 60 lakh shares, aggregating to ₹12.00 crores.
• The minimum lot size for the application is 6000 shares.
• Retail investors need to invest a minimum of ₹120,000.
• The minimum investment for HNI is 2 lots (12,000 shares), amounting to ₹240,000.
• Turnaround Corporate Advisors Private Limited is the book-running lead manager for the IPO.
• Bigshare Services Pvt Ltd serves as the registrar.
• Mnm Stock Broking is the market maker for the IPO.

NeoPolitan Pizza and Foods IPO- Key Dates

The cut-off time for UPI mandate confirmation is 5:00 PM on 4th October 2024. This deadline is crucial for investors to ensure their applications are processed successfully. Investors are advised to complete their applications well before this deadline to avoid any last-minute technical issues or delays.

NeoPolitan Pizza and Foods IPO Issue Details/Capital History

NeoPolitan Pizza and Foods IPO is scheduled from 30th September to 4th October 2024, with a fixed price of ₹20 per share and a face value of ₹10. The total issue size is 60,00,000 shares, raising up to ₹12.00 crores through a fresh issue. The IPO will be listed on BSE SME. The pre-issue shareholding is 1,10,00,000 shares.

NeoPolitan Pizza and Foods IPO Allocation & Minimum Investment Lot Size

The IPO shares are allocated across different investor categories as follows:

Investors can place bids for a minimum of 6000 shares, with additional bids required in multiples of this figure. The table below illustrates the minimum and maximum investment amounts for retail investors and HNIs, expressed in shares and monetary values.

SWOT Analysis: NeoPolitan Pizza and Foods Ltd

Strengths:

• Authentic Neapolitan-style pizza made using traditional techniques and ingredients
• Diverse menu catering to different tastes and dietary preferences
• Strong brand identity across outlets and marketing channels
• Use of technology in operations, including online ordering and delivery tracking

Weaknesses:

• Limited geographical presence (2 states and union territories)
• Dependence on agricultural commodities for both restaurant and trading segments

Opportunities:

• Expansion of retail network through new Quick Service Restaurants
• Growing demand for authentic international cuisine in India
• Potential for further international expansion (existing subsidiary in USA)

Threats:

• Intense competition in the quick-service restaurant sector
• Fluctuations in agricultural commodity prices
• Economic slowdowns affecting discretionary spending on dining out

Financial Highlights: NeoPolitan Pizza and Foods Ltd

Below are the consolidated financial results for the Fiscal years FY24, FY23, and FY22:

NeoPolitan Pizza and Foods Limited has shown strong growth in recent years. The company's revenue increased by 120% and profit after tax (PAT) rose by 80% between the financial year ending on 31st March 2024 and 31st March 2023.

Assets have shown steady growth, increasing from ₹1,300.94 lakhs in FY22 to ₹2,040.5 lakhs in FY24, representing a growth of about 56.8% over two years.

Revenue has grown substantially, rising from ₹1,630.82 lakhs in FY22 to ₹4,401.07 lakhs in FY24, marking an impressive increase of 169.9% over two years.

The company's profitability has improved significantly. Profit After Tax increased from ₹18.44 lakhs in FY22 to ₹210.72 lakhs in FY24, representing a substantial growth of 1,043% over two years.

Net Worth has shown strong growth, increasing from ₹807.39 lakhs in FY22 to ₹1,590.86 lakhs in FY24, a growth of about 97% over two years.

Total Borrowings have decreased significantly from ₹259.45 lakhs in FY22 to ₹59.19 lakhs in FY24, which represents a decrease of about 77.2% over two years. This substantial reduction in borrowings, coupled with increasing profitability, suggests improving financial health.

The company's financial performance shows a trend of strong revenue growth and significantly improving profitability. The substantial increase in Net Worth and a significant decrease in borrowings indicate a strengthening financial position. Investors should consider these positive trends along with the company's growth strategy and the evolving quick-service restaurant sector when evaluating the IPO.