Slicing into Success: The NeoPolitan Pizza and Foods Limited IPO

Table of Contents

Introduction

Welcome to a detailed slice of investment news—the NeoPolitan Pizza and Foods Limited IPO. If you’re a fan of authentic Neapolitan pizza or an investor looking for a piece of the booming food sector, you’re in the right spot. Here, we’ll explore what makes this IPO a potentially delicious investment opportunity.

1. NeoPolitan Pizza and Foods: From Dough to Decision

NeoPolitan Pizza and Foods Limited isn’t just about pizza; it’s a culinary journey founded by seasoned entrepreneur Mukund Purohit. The company aims to bring a taste of Naples to every corner of India, starting with Neapolitan-style pizzas tailored to local tastes. Over time, NeoPolitan has diversified into agricultural commodity trading, showcasing a broad revenue base.

NeoPolitan Pizza aims to grow aggressively by opening 25 new outlets. The expansion will focus on a mix of company-owned and franchise models, enabling the brand to swiftly establish its presence in new markets.

Led by Mukund Purohit, NeoPolitan has expanded beyond QSR into commodity trading. His vision is to make NeoPolitan a household name in India, known for innovation and quality in the food industry.

2. NeoPolitan Pizza IPO Details: Your Slice of the Market

IPO Dates: September 30 to October 4, 2024, for subscription. Expected listing on October 9, 2024.
Price Band: Shares are priced at ₹20 each, making it accessible for a wide range of investors.
Fund Allocation: Proceeds will be used to fuel geographic expansion, primarily opening new quick-service restaurant (QSR) outlets across India.

Here’s the NeoPolitan Pizza and Foods Limited IPO key dates in tabular form:

Event	Date
IPO Opening Date	September 30, 2024
IPO Closing Date	October 4, 2024
Basis of Allotment	October 7, 2024
Initiation of Refunds	October 8, 2024
Shares Credit to Demat Accounts	October 8, 2024
IPO Listing Date	October 9, 2024

Here is the updated table for NeoPolitan Pizza and Foods Limited IPO:

IPO Details	Information
Company Name	NeoPolitan Pizza and Foods Limited
IPO Size	₹20 crore
Fresh Issue	₹20 crore (1 crore equity shares)
Price Band	₹20 per share
Face Value	₹10 per share
Listing Exchange	NSE SME
Minimum Bid Lot	6,000 shares
Minimum Investment	₹120,000
Issue Type	Fixed Price Issue
Issue Category	SME IPO
QIB Allocation	50%
NII Allocation	15%
Retail Allocation	35%
Company Sector	Food & Beverage (QSR)

3. NeoPolitan Pizza and Foods Limited IPO Financial

Here’s the financial information for NeoPolitan Pizza and Foods Limited formatted into a clear table:

Financial Metric	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 (PAT)	₹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

Key Insights:

Revenue Growth: The company’s revenue showed a significant increase from ₹1,630.82 lakh in FY 2022 to ₹4,401.07 lakh in FY 2024, marking a 120% growth in the last fiscal year.
Profit After Tax (PAT): PAT grew from ₹18.44 lakh in FY 2022 to ₹210.72 lakh in FY 2024, indicating an 80% increase year-over-year from FY 2023 to FY 2024.
Assets: There’s a steady increase in assets from ₹1,300.94 lakh in FY 2022 to ₹2,040.5 lakh in FY 2024, reflecting growth in the company’s size and operations.
Net Worth: Net worth has risen significantly, showing the company’s financial health improving over the years.
Reserves and Surplus: This has turned from a negative figure of ₹-63.9 lakh in FY 2022 to a positive ₹492.33 lakh in FY 2024, suggesting strong profitability and retention of earnings.
Debt Reduction: Total borrowings have decreased from ₹259.45 lakh in FY 2022 to ₹59.19 lakh in FY 2024, indicating improved financial management and possibly better cash flow or funding from other sources like equity or retained earnings.

This financial overview showcases NeoPolitan Pizza and Foods Limited’s robust growth and increasing financial stability, which could be attractive to potential investors in its IPO.

4. NeoPolitan Pizza and Foods Limited IPO GMP and Subscription

GMP (Grey Market Premium): There hasn’t been a specific figure mentioned directly for NeoPolitan Pizza and Foods Limited IPO till now. However, for other recent SMEs, GMPs have been mentioned with high variability, suggesting that GMPs can be misleading or manipulated, especially for SMEs. For instance, other SMEs like BikeWo GreenTech had a high GMP but listed at a discount, indicating potential unreliability in using GMP as a sole indicator for investment decisions.
Subscription: While there’s no direct mention of NeoPolitan’s subscription status, the context from other IPOs indicates that high subscription rates do not always translate to listing gains. For instance, Kalana Ispat had a 74x subscription in the retail category but listed at a significant discount.

From these insights:

GMP for NeoPolitan Pizza and Foods: Given the lack of specific data on NeoPolitan’s GMP, if there were any GMP figures floating around, they should be taken with caution. The sentiment around other SME IPOs suggests skepticism towards high GMPs, indicating that even if NeoPolitan had a high GMP, it might not reflect its true listing performance.
Subscription Status: While not directly covered for NeoPolitan, the general discussion shows that even heavily subscribed IPOs can list at discounts, suggesting that the subscription level of NeoPolitan’s IPO might not be a direct indicator of its listing success.

In summary, while there’s no direct quote or specific data point about NeoPolitan Pizza and Foods Limited’s IPO GMP or subscription specifics, the broader discussion highlights a cautious approach towards such metrics for SME IPOs, advising potential investors to look beyond GMP and high subscription rates for a more informed investment decision.

5. NeoPolitan Pizza and Foods Limited IPO EPS and PE Ratio

Based on the information provided from various sources, here’s the data on NeoPolitan Pizza and Foods Limited’s IPO concerning EPS (Earnings Per Share) and PE (Price to Earnings) Ratio:

EPS: While specific figures for EPS directly from NeoPolitan Pizza and Foods Limited’s IPO documentation or financial statements post-IPO aren’t provided, we can infer from the financial growth that if we take the Profit After Tax (PAT) for the fiscal year ending March 2024, which was ₹210.72 lakh and divide it by the number of shares post-IPO (assuming all new shares are issued), we get an idea of the EPS. However, exact calculation without the precise number of shares post-IPO isn’t possible here.
PE Ratio: The PE ratio for NeoPolitan Pizza and Foods IPO was mentioned as 10.44 in a comparison with Nexxus Petro Industries IPO. This ratio is calculated by dividing the issue price by the EPS. Given the issue price of ₹20 per share, if we reverse calculate an approximate EPS:
EPS=Issue PricePE Ratio=2010.44≈₹1.92This implies an estimated EPS of approximately ₹1.92 based on the PE ratio provided.

From this:

EPS Calculation: If we take the profit after tax from the latest financial year and assume it’s reflective of what might be expected in the future (which isn’t entirely accurate for forward-looking EPS but gives a rough estimate), the real EPS might differ based on actual shares issued, but this calculation gives an approximate baseline.
PE Ratio Insight: A PE ratio of 10.44 indicates that investors are paying ₹10.44 for every rupee of earnings. This ratio is relatively moderate, suggesting that while there’s optimism about growth (given the company’s expansion plans), the market isn’t overly exuberant about the future earnings potential compared to some other SME IPOs or high-growth tech companies where PE ratios might be significantly higher.

Remember, these figures are based on assumptions and the information provided. The actual EPS post-IPO could differ due to various factors including the number of shares issued, changes in earnings, or adjustments in financial statements post-IPO. The PE ratio, while a good indicator for valuation, should be taken in context with industry averages, growth prospects, and macroeconomic conditions at the time of the IPO for a more nuanced analysis.

8. Risks and Considerations for Investors

Like any investment, this IPO comes with risks, including operational challenges and broader economic factors that could impact consumer spending. Potential investors should weigh these risks against the company’s strategic plans for growth and expansion.

9. How to Invest in NeoPolitan Pizza IPO

Interested investors can follow standard procedures to apply for the IPO. Stay tuned for allotment dates, and get ready for the excitement of listing day!

10. Conclusion: Is NeoPolitan Pizza IPO a Slice Worth Considering?

NeoPolitan Pizza IPO offers more than just an investment in a food chain; it’s an opportunity to invest in a growing culinary identity in India. With ambitious expansion plans and a unique market position, it could be a flavorful addition to your portfolio.

Call to Action

Before making any decisions, be sure to do your due diligence. Research thoroughly, consult with a financial advisor, and perhaps enjoy a NeoPolitan pizza while you mull over this investment opportunity. Don’t forget to share your thoughts and experiences in the comments below!