NeoPolitan Pizza and Foods Limited IPO

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Neopolitan Pizza and Foods Limited got listed on the Emerge Institutional Trading Platform (ITP) of the National Stock Exchange of India Limited (NSE) on November 3, 2014. However, after a strategic review, the company determined that remaining listed on the NSE’s ITP platform did not provide significant tangible advantages to shareholders or investors. The costs associated with compliance and the financial burden of adhering to multiple regulations prompted the company to seek voluntary delisting.

On May 31, 2018, the company received approval from NSE for voluntary delisting, with trading activities ceasing on June 6, 2018. As of June 14, 2018, the company was fully delisted from NSE’s ITP platform.

Business Segments

Today, Neopolitan Pizza and Foods Limited operates in two distinct business segments:
i. Restaurant Business
ii. Trading of Agricultural Commodities

Unique Value Proposition

Neopolitan Pizza and Foods Limited has successfully carved out a niche for itself in the competitive Indian food and beverage industry. By blending traditional Italian recipes with local tastes, it has positioned itself as a brand that resonates with the Indian consumer. The strategic use of the franchise model has allowed the company to scale its operations without heavy capital investment, driving profitability.

In the restaurant business, their commitment to using fresh ingredients and offering dietary-inclusive options such as gluten-free and vegetarian pizzas has widened their appeal. The company’s ability to adapt to the unique demands of the Indian market, while maintaining the essence of Neopolitan pizza, sets them apart from competitors.

On the commodity trading front, the company has established a second line of business, leveraging its expertise and market knowledge in agricultural commodities. This diversification reduces the risk associated with the highly competitive food and restaurant industry and opens up additional growth opportunities.

Conclusion

Neopolitan Pizza and Foods Limited has evolved from a small private company into a publicly listed entity with a diversified business model. With its strong presence in the restaurant sector and its growing involvement in agricultural commodities trading, the company is well-positioned for continued growth in the future. The combination of its successful franchise model, innovative product offerings, and strategic diversification will likely continue to drive its success in the competitive Indian market.

Objects of the NeoPolitan Pizza and Foods Limited IPO:

The company proposes to utilize the funds being raised through this Issue towards the objects mentioned below. i. Expansion of the Retail Network by launching 16 new Quick Service Restaurants ii. Security Deposit and Advance Rent iii. Brokerage Charges iv. Working Capital Requirements v. General Corporate Expenses

NeoPolitan Pizza and Foods Limited IPO Details:

Open Date: Sep 30 2024
Close Date: Oct 04 2024
Total Shares: 6,000,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 12.00 Cr.
Lot Size: 6000 Shares
Issue Price: ₹ 20 Per Equity Share
Listing At: BSE SME
Listing Date: Oct 09 2024

Promoters And Management:

Mr. Mukund Purohit, 53, is the Promoter, CFO, and Managing Director of the company. He is an Indo-Canadian entrepreneur with ventures in the pizza chain and film production industries. He holds leadership roles such as President of Baroda Management Association, mentor for startups, and president of Vcare Project Management Consultant Inc (Canada). He has also advised the governments of Saskatchewan and New Brunswick and serves on multiple Indo-Canadian business councils. Notably, he was a consultant for the first potash deal between India and Canada. Mr. Ashvin Chandel, 53, is the Executive Director of the company with over 30 years of experience in business. His expertise includes strategic business management, financial risk assessment, budget management, and global business development. Known for leading cross-functional teams and improving quality with cost efficiency, his passion for food has been instrumental in giving Neopolitan Pizza new wings. Mrs. Arti Mukund Purohit, 50, is the Promoter and Executive Director of the company with over 25 years of diverse experience, including 20+ years in the food and beverage industry. She leads procurement for strategic food categories, develops new recipes, and manages commodity hedging strategies to ensure supply stability and improve restaurant profitability in both India and North America.

Financials of NeoPolitan Pizza and Foods Limited IPO:

Particulars ( In Lakhs )
2022
2023
2024
Revenue from Operations 1,630 2,004 4,400
Other Income 1 1 1
Total Revenue 1,631 2,005 4,401
Purchases 1,479 2,119 3,968
Change in Inventories 0 -417 -10
Employees Benefit Expenses 22 34 63
Other Expenses 37 43 55
EBITDA 93 226 326
OPM (%) 5.68% 11.27% 7.41%
Depreciation & Amortisation 43 42 42
EBIT 50 184 284
Finance Cost 19 30 0.2
PBT 31 154 284
Tax 13 37 73
PAT 18 117 211
NPM (%) 1.13% 5.83% 4.79%
No.of Shares 170 170 170
EPS 0.10 0.68 1.23

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Neopolitan Pizza and Foods Limited 44 2 1.23 16.1 20 34
Restaurant Brands Asia Ltd 2,437 -237 -4.39 N/A 111 5,518
Barbeque-Nation Hospitality Ltd 1,255 -11 -3.43 N/A 639 2,497
* All the data is as per FY24.

Lead Manager of NeoPolitan Pizza and Foods Limited IPO:

  1. Turnaround Corporate Advisors Private Limited

Registrar of NeoPolitan Pizza and Foods Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

NeoPolitan Pizza and Foods Limited 434 & 435, SWC Hub Opp. Rajpath Complex, Vasna Bhayli Road Vadodara � 391410 Phone: +91 95740 00428 Email: csneo@neopolitanpizza.in Website: https://www.neopolitanpizza.in/

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