NeoPolitan Pizza And Foods Shares Hit 5% Upper Circuit After Listing At Discount On BSE SME

Shares of NeoPolitan Pizza and Foods Ltd. made a tepid debut on the exchanges, listing at a discount over the issue price. However, the stock gained momentum after the weak listing and hit 5% upper circuit at Rs 20.21 apiece.

NeoPolitan Pizza and Foods stock listed at Rs 19.25 on BSE SME, marking a 3.75% discount over the IPO's issue price of Rs 20.

Investors allotted a single lot of 6,000 shares of NeoPolitan Pizza and Foods Ltd. would have incurred a loss of Rs 4,500 against an investment of Rs 1,20,000 at the time of listing.

The stock, however, gained momentum after the weak listing and hit 5% upper circuit at Rs 20.21 apiece.

The listing price was lower than the grey market premium on the IPO. NeoPolitan Pizza IPO GMP was Rs 0 over the issue price just before the listing, according to InvestorGain.

Investors must note that the GMP of an IPO does not indicate its official price and is a speculative estimate.

NeoPolitan Pizza IPO opened for bidding between Sept. 30 and Oct. 4 and received a decent response from investors. The IPO got subscribed 32.72 times over the four days of bidding. Retail individual investors bid for 42.62 times the shares allocated for them, while the issue was subscribed 20.72 times in the Others category.

The offer was an entirely fresh issue of over 60 lakh shares worth Rs 12 crore. NeoPolitan Pizza IPO was a fixed price issue offering of shares at Rs 20 apiece.

The share allotment of the IPO was finalised on Oct. 7. Bigshare Services Pvt. was the registrar for the issue, while Turnaround Corporate Advisors Pvt. was its book-running lead manager.

The company will use the net proceeds from the issue to open 16 new quick-service restaurants, it said. Further, the money via the IPO will be used to pay the security deposit and advance rent for the company’s stores. The funds will also be used to pay brokerage charges.

A portion of the funds will also be used for working capital requirements and general corporate purposes.

NeoPolitan Pizza and Foods Ltd. is engaged in restaurant operations and agricultural commodity trading. It operates its restaurants through the franchise model, selling Neapolitan-style pizza made with fresh ingredients.

Established in 2011, the company made its expansion in the US by opening a wholly-owned subsidiary, Neoindian Pizza Inc., with an investment of $87,500.

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.