NeoPolitan Pizza IPO: A Comprehensive Guide to the Latest SME IPO
NeoPolitan Pizza and Foods Ltd is launching its SME IPO in September 2024, offering investors an opportunity to invest in a growing player within the restaurant and agricultural commodity trading sectors. Here's everything you need to know about the NeoPolitan Pizza and Foods IPO, including company details, key dates, financial performance, and more.
NeoPolitan Pizza and Foods: Company Profile and Background
Incorporated in February 2011, NeoPolitan Pizza and Foods Limited operates across two primary segments: restaurant operations and agricultural commodity trading. The company is known for its family-friendly restaurants offering a range of Neapolitan-style pizzas, as well as soups, salads, pasta, and desserts. They emphasize fresh ingredients and cater to various dietary preferences, including gluten-free and vegetarian options.
In addition to running its own outlets, NeoPolitan Pizza also operates on a franchise model, allowing for wider market reach. Beyond the restaurant business, the company trades agricultural commodities such as wheat, rice, tomatoes, and onions, focusing on sourcing high-quality products and offering them to customers at competitive prices.
Key Highlights:
- Restaurant Segment: Family-oriented, offering a wide variety of Neapolitan pizzas and other Italian cuisines.
- Agricultural Trading Segment: Engaged in trading key food commodities.
- Certifications: ISO 22000:2018 certified.
NeoPolitan Pizza and Foods IPO: Key Details and Dates
Below are the essential details for the NeoPolitan Pizza and Foods IPO:
- IPO Opening Date: September 30, 2024
- IPO Closing Date: October 4, 2024
- Allotment Finalization: October 7, 2024
- Listing Date: October 9, 2024
- Price: ₹20 per share
- Minimum Lot Size: 6,000 shares
- Minimum Investment for Retail Investors: ₹120,000 (1 lot)
- Minimum Investment for HNI: ₹240,000 (2 lots)
- Issue Size: ₹12 crore (60 lakh shares)
Objects of the Issue
The funds raised through the NeoPolitan Pizza and Foods IPO will be utilized for the following objectives:
- Expansion of the Retail Network: Establishing 16 new Quick Service Restaurants (QSRs).
- Security Deposit and Advance Rent: Securing prime locations for new outlets.
- Brokerage Charges: For leasing and property acquisition.
- Working Capital Requirements: To support operational growth and expansion.
- General Corporate Expenses: Improving overall operational efficiency.
Financial Performance and Projections
NeoPolitan Pizza and Foods has demonstrated impressive growth, particularly in the last fiscal year. Below is a snapshot of the company’s financial performance:
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
|---|---|---|---|
| Assets (₹ Lakhs) | 2,040.5 | 1,811.58 | 1,300.94 |
| Revenue (₹ Lakhs) | 4,401.07 | 2,004.61 | 1,630.82 |
| PAT (₹ Lakhs) | 210.72 | 116.8 | 18.44 |
| Net Worth (₹ Lakhs) | 1,590.86 | 1,381.61 | 807.39 |
| Reserves (₹ Lakhs) | 492.33 | 281.61 | -63.9 |
| Total Borrowing (₹ Lakhs) | 59.19 | 68.82 | 259.45 |
Between FY 2023 and FY 2024:
- Revenue increased by 120%.
- Profit after tax (PAT) grew by 80%, reflecting strong profitability.
Grey Market Premium (GMP) Analysis
The Grey Market Premium (GMP) for NeoPolitan Pizza and Foods' IPO will be available closer to the listing date. GMP is an early indicator of the demand for the IPO shares and can provide insight into investor sentiment before the official listing.
IPO Allotment Process and Timeline
The allotment process for NeoPolitan Pizza and Foods IPO will follow a standard procedure to ensure transparency for all investors. Key milestones include:
- Allotment Finalization: Expected on October 7, 2024.
- Refund Process: Refunds for unsuccessful applicants will begin by October 8, 2024.
- Listing on BSE SME: Shares are expected to list on October 9, 2024.
Investors can check their allotment status using their PAN or application number on the registrar’s website.
Risks and Opportunities
Investing in NeoPolitan Pizza and Foods Ltd comes with its own set of risks and opportunities:
- Strengths: Strong growth in revenue and profitability, diversified business model with both restaurant and agricultural trading segments.
- Weaknesses: Restaurant business can be impacted by changing consumer preferences and economic downturns.
- Opportunities: Expansion of the quick-service restaurant (QSR) network and rising demand for agricultural products.
- Threats: Competition in the foodservice industry and the impact of raw material price fluctuations.
Conclusion
The NeoPolitan Pizza and Foods IPO provides an opportunity for investors to engage with a fast-growing company in both the restaurant and agricultural sectors. With a proven track record of growth and expansion plans, the IPO is set to attract attention from retail and institutional investors alike. The IPO opens for subscription on September 30, 2024, and closes on October 4, 2024. Interested investors should carefully review the company's financials, objectives, and market position before making an investment decision.