NeoPolitan Pizza And Foods IPO Fully Subscribed On Day 2; Check GMP, Price Band And More

NeoPolitan Pizza and Foods Ltd.'s IPO that opened for subscription on Monday was fully subscribed to on Day 2. The SME IPO was subscribed 0.83 times on Day 1.

The BSE SME issue will be available for bidding till October 4. The Rs 12-crore fixed price offer consists of a fresh issue of 60 lakh shares of a face value of Rs 10 each.

The IPO price has been fixed at Rs 20 apiece. Retail investors can bid for a minimum single lot size of 6,000 shares, aggregating to an investment of Rs 1,20,000. On the other hand, High Networth Individuals can apply for 2 lots or 12,000 shares, which amounts to an investment of Rs 2,40,000.

As per the company's red herring prospectus, of the 60,00,001 shares offered - 47.5% is reserved for Non-institutional investors and 47.5% for Retail investors. The IPO offer size also includes a market maker portion of 3,00,000 shares.

The book-running lead manager for the issue is Turnaround Corporate Advisors Pvt. Bigshare Services Pvt. has been appointed as the registrar for the issue. NeoPolitan Pizza and Foods IPO market maker is MNM Stock Broking.

The IPO has been subscribed 2.74 times as of 4:49 p.m. on Tuesday

• Non-institutional Buyers: 0.43 times

• Retail Investors: 5.06 times

The subscription status will be updated at regular intervals.

The grey market premium (GMP) of NeoPolitan Pizza and Foods IPO is Rs 0 as of 12:56 p.m. on October 1, indicating a flat listing, according to Chittorgarh's unit Investorgain.

Investors should note that GMP of an IPO is not the official listing price and is just grey market estimates.

NeoPolitan Pizza and Foods IPO share allotment status is likely to be decided on October 7. After the share allotment status is decided, shares will be credited into the Demat accounts of successful bidders and refunds will be initiated for unsuccessful bidders on October 8.

NeoPolitan Pizza and Foods Ltd.'s shares will be listed on the BSE SME platform. The tentative IPO listing date is October 9.

NeoPolitan Pizza and Foods Ltd. promoters include Mukund Purohit and Arti Mukund Purohit. The promoters of the company held 72.68% stake in the company before the public issue. After the issue, the stake of the promoters will reduce to 47.03%.

NeoPolitan Pizza and Foods Ltd. was incorporated in February 2011. The company has two businesses. The company undertakes agricultural commodity trading and has a restaurant chain under the brand name 'Neopolitan Pizza'. The company's restaurant business is operated via its own restaurants and also through a franchise model.

The company plans to use the money raised via the public issue for expansion of its retail network by launching 16 new Quick Service Restaurants. The company will also use the proceeds for paying its security deposit and advance rent. A portion of the proceeds will also be used for funding brokerage charges, working capital requirements, issue expenses and general corporate purposes.

The company's total revenue for the nine-month period ended December 31, 2023, stood at Rs 30.33 crore and the company’s net profit for the same period stood at Rs 1.6 crore.

In fiscal 2023, NeoPolitan Pizza and Foods Ltd. posted total revenue of Rs 20.04 crore, a 23% year-on-year gain from Rs 16.3 crore in the preceding financial year. The company's net profit for fiscal 2023 stood at 1.16 crore, up over 533% from Rs 18.44 lakh in fiscal 2022.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.