Neopolitan Pizza and Foods
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 30 Sep 2024 – 04 Oct 2024
- Listing date
- 09 Oct 2024
- Face value
- ₹1 per share
- Issue price
- ₹20 per share
- Lot size
- 6,000 shares
- Issue type
- Fixed Price issue
- Listing at
- BSE
- Total issue size
- ₹12 Cr
- Market cap at offer price
- ₹34 Cr
- Promoter holding
- 72.68% → 47.03% pre-issue → post-issue
- ISIN
- INE471R01019
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Turnaround Corporate Advisors Pvt.Ltd.
- Registered office
- 434 & 435, SWC Hub, Opp.Rajpath Complex, Vasna Bhayli Road, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 3,00,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹20
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 12,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 48,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 54,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 1.92 | 1.24 |
| P/E (×) | 10.42 | 16.13 |
| Market cap | — | ₹34 Cr |
Key performance indicators
- Return on net worth
- 13.15%
- ROCE
- 17.17%
- Debt / equity
- 0.04
- PAT margin
- 4.75%
- NAV per share
- ₹14.46
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Neopolitan Pizza and Foods
Neopolitan Pizza Limited was originally incorporated as 'JRM Fertilizer Private Limited' on February 5, 2011, renamed to 'Neopolitan Pizza Private Limited' in June 2012, and converted to a public limited company in October 2014. It was listed on the NSE Emerge ITP Platform on November 3, 2014 and voluntarily delisted effective June 7, 2018. The company operates in two segments: (1) a restaurant business under the brand 'NEOPOLITAN PIZZA' offering unlimited Italian buffet meals, pizzas, pasta, salads and desserts through three models — Company Owned Company Operated (COCO), Franchisee Owned Company Operated (FOCO), and Franchisee Owned Franchisee Operated (FOFO); and (2) trading of agricultural commodities including cereals, pulses, grains, fruits and vegetables sourced directly from farmers and suppliers. As of December 31, 2023, it had 19 restaurants across Gujarat and Bihar. The company generates revenue primarily from restaurant food sales, franchise fees and royalties, and margins on commodity trading. It is ISO 22000:2018 certified and plans to expand its retail network by opening new QSRs across Gujarat using IPO proceeds.
Company Analysis
from DRHPNeopolitan Pizza Limited is a quick service restaurant chain that owns, operates and franchises Neapolitan-style pizza outlets across India, while simultaneously trading in agricultural commodities such as cereals, pulses, grains, fruits and vegetables.
Neopolitan Pizza Limited was originally incorporated as 'JRM Fertilizer Private Limited' on February 5, 2011, renamed to 'Neopolitan Pizza Private Limited' in June 2012, and converted to a public limited company in October 2014. It was listed on the NSE Emerge ITP Platform on November 3, 2014 and voluntarily delisted effective June 7, 2018. The company operates in two segments: (1) a restaurant business under the brand 'NEOPOLITAN PIZZA' offering unlimited Italian buffet meals, pizzas, pasta, salads and desserts through three models — Company Owned Company Operated (COCO), Franchisee Owned Company Operated (FOCO), and Franchisee Owned Franchisee Operated (FOFO); and (2) trading of agricultural commodities including cereals, pulses, grains, fruits and vegetables sourced directly from farmers and suppliers. As of December 31, 2023, it had 19 restaurants across Gujarat and Bihar. The company generates revenue primarily from restaurant food sales, franchise fees and royalties, and margins on commodity trading. It is ISO 22000:2018 certified and plans to expand its retail network by opening new QSRs across Gujarat using IPO proceeds.
Objects of the Issue
- Expansion of Retail Network by launching new Quick Service Restaurants (QSR) Rs. 708.00 Lakhs p.77
- Security Deposit and Advance Rent Rs. 26.00 Lakhs p.77
- Brokerage Charges Rs. 13.00 Lakhs p.77
- Working Capital Requirements Rs. 352.00 Lakhs p.77
- General Corporate Expenses Rs. 71.00 Lakhs p.77
- Issue Related Expenses Rs. 30.00 Lakhs p.77
Issue Structure
- Total Issue
- Rs. 1,200.00 Lakhs (60,00,000 Equity Shares of Rs. 10 each at Rs. 20 per share)
- Fresh Issue
- Rs. 1,200.00 Lakhs
- Offer for Sale
- NIL
- Price Band
- Fixed Price of Rs. 20/- per Equity Share
- Lot Size
- Minimum 6,000 Equity Shares
- Face Value
- Rs. 10/- per Equity Share
Business Model
Revenue is earned from: (a) direct food sales at company-owned restaurants (COCO model); (b) fixed commission on sales at franchisee-owned company-operated stores (FOCO model); (c) one-time franchise fees, monthly royalties and billing software charges from franchisee-operated stores (FOFO model); and (d) margins from sourcing and selling agricultural commodities (cereals, pulses, grains, fruits and vegetables) to B2B customers.
Business Segments
SWOT Analysis
- • Authentic Neopolitan-style pizza differentiates the brand from other pizza chains(p.120)
- • Asset-light FOFO franchise model enables rapid expansion (18 franchises)(p.120)
- • Diverse menu catering to varied tastes and dietary preferences(p.120)
- • Strong, consistent brand identity driving repeat business(p.120)
- • Promoters with over 15 years of QSR and F&B industry experience(p.113)
- • ISO 22000:2018 food-safety certification(p.113)
- • Direct sourcing of quality agricultural commodities from farmers/suppliers(p.121)
- • High customer concentration in agri-commodity trading (top 10 customers = 89.39% of segment revenue in 9M FY24)(p.30)
- • Supplier concentration with no long-term supply contracts (top 10 suppliers = 82.48% of purchases)(p.30)
- • Company trademark registered in the promoter's name, not the company's(p.31)
- • Promoter was previously disqualified as a director under Section 164(2)(p.32)
- • Negative operating cash flows in recent fiscals(p.37)
- • Unsecured related-party loans of Rs 47.97 lakh recallable at any time(p.38)
- • High trade receivables at 37.32% of total assets(p.38)
- • Geographic concentration of revenues within Gujarat(p.35)
- • Expansion of retail network via 16 new company-owned QSRs funded by IPO proceeds(p.122)
- • Entry into the growing frozen pizza segment(p.126)
- • International expansion through wholly-owned US subsidiary Neoindian Pizza Inc.(p.114)
- • Industry tailwind: QSR chain market growing at 23% CAGR (FY20-25)(p.112)
- • Menu innovation beyond core Neopolitan-style pizzas(p.123)
- • Diversification of agri-commodity product range to widen customer base(p.123)
- • Geographic expansion of agri-commodity trading into new markets(p.124)
- • Intense competition in both QSR and agri-commodity trading industries(p.26)
- • QSR sales sensitive to economic downturns and discretionary spending(p.26)
- • Volatility in agricultural commodity prices affecting trading profitability(p.26)
- • Potential new fast-food taxes/regulation driven by health concerns(p.33)
- • Pandemic/public-health disruptions to restaurant operations(p.25)
- • Weather/pest-driven supply shortages raising input costs(p.27)
- • Rising wage costs in India pressuring margins(p.34)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mukund Purohit | Promoter | 72.09% | 46.65% |
| Arti Mukund Purohit | Promoter | 0.58% | 0.38% |
Leadership
Auto-extracted from the company's DRHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official DRHP before relying on it.