NeoPolitan Pizza and Foods IPO
Neopolitan Pizza Ltd
₹1,20,000 /6000 sharesMinimum Investment
NeoPolitan Pizza and Foods IPO Listing Details
Listed On | Issue Price | Listing Price | Listing Gains |
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-- | ₹20.00 | ₹19.25 | -₹0.75 (3.75%) |
NeoPolitan Pizza and Foods IPO Details
Bidding Dates | Min. Investment | Lot Size | Price Range |
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30 Sep ‘24 - 4 Oct ‘24 | ₹1,20,000 | 6,000 | ₹20 - ₹20 |
Neopolitan Pizza and Foods Limited operates in two primary segments: the restaurant industry and the trading of agricultural commodities. In the restaurant business, its Quick Service Restaurant (QSR) model consists of company-owned, company-operated (COCO) outlets and franchise outlets. The primary product of this segment is its Neopolitan-style pizza, a traditional Italian dish. The company offers a menu that includes pizzas with different toppings, including gluten-free and vegetarian options.
Neopolitan Pizza and Foods is also involved in the trading of agricultural commodities, where it deals with products such as wheat, rice, tomatoes, and onions.;
Managing director
Mr. Mukund Purohit
Parent organisation
Neopolitan Pizza Ltd
Strengths & Financials of NeoPolitan Pizza and Foods
Neopolitan Pizza and Foods is ISO 22000:2018 certified for food safety management systems.
The company claims to have rebranded itself and has enhanced the traditional restaurant experience by offering a diverse menu that includes soups, exotic salads, freshly baked bread, pasta, hand-tossed pizzas, and desserts, featuring popular items like flatbread pizzas.
Neopolitan Pizza and Foods has broadened its global presence by investing in its wholly-owned subsidiary, Neoindian Pizza Inc., based in the US.
As of March 31, 2024, the company operates 21 restaurants in over 16 cities across two states and Union Territories in India.
The company claims to source its agricultural commodities directly from farmers and suppliers who practise sustainability, quality, and fair trade. This selection process ensures maximum freshness and quality, it says.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 16.29 crore in FY22 to Rs 20.03 crore in FY23 to Rs 44.00 crore in FY24, while PAT increased from Rs 0.18 crore in FY22 to Rs 1.17 crore in FY23 to Rs 2.11 crore in FY24.
The Quick Service Restaurant (QSR) segment of Neopolitan Pizza is subject to food safety and quality regulations. Any failure to comply with these standards could lead to negative publicity and a loss of customer trust.
The franchise model used in the QSR segment relies on third-party franchisees. If these franchisees fail to uphold brand standards or operate inefficiently, it could damage the company's brand image and reputation.
Neopolitan Pizza and Foods' agricultural commodity trading segment faces risks related to the supply chain. The company sources products such as wheat, rice, tomatoes, and onions from various regions, and any disruptions in the supply chain can negatively impact the company’s operations and financial performance.
A major portion of revenue generated by agricultural commodities comes from a small number of customers. The top 10 customers contributed Rs 37.36 crore (92.07%), Rs 14.23 crore (81.80%), and Rs 10.98 crore (72.67%) to revenue in FY24, FY23, and FY22, respectively. Any loss of any of these key customers, a failure to retain them, or a decrease in demand from them can adversely affect the company’s operations and financial performance.
The company's purchases of agricultural commodities are also concentrated among a few suppliers. The top 10 suppliers accounted for Rs 31.41 crore (80.87%), Rs 16.28 crore (78.50%), and Rs 10.86 crore (73.70%) of total purchases in FY24, FY23, and FY22, respectively. Loss of any of these suppliers can negatively impact the company’s business.
A large portion of sales is generated from specific geographies within Gujarat. Any adverse socio-political or economic developments in Gujarat can disrupt the company's operations, negatively affecting its sales generation capacity.
NeoPolitan Pizza and Foods Financials
*All values are in Rs. Cr
Application Details of NeoPolitan Pizza and Foods IPO
Apply as | Price band | Apply Range |
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Regular | ₹20 - 20 | ₹2 - 5 Lakh |
High Networth Individual | ₹20 - 20 | ₹2 - 5 Lakh |
For NeoPolitan Pizza and Foods IPO, eligible investors can apply as Regular.