Neopolitan Pizza shares list at nearly 4% discount at ₹19.2 on the BSE SME platform; check details

Shares of small and medium enterprise (SME) Neopolitan Pizza and Foods Ltd. made a muted trading debut on Wednesday, October 9. The stock listed at a nearly 4% discount on the BSE SME platform.

The stock opened at ₹19.25 apiece, down 3.75%, compared to its initial public offering (IPO) price of ₹20 apiece. After listing at a discount, the share price corrected by another 5% to hit the lower circuit at ₹18.29 levels, but later recovered to trade 5% above the opening price at ₹20.21 apiece on the BSE.

As the minimum bid quantity to apply for the Neopolitan Pizza and Foods IPO was 6,000 shares, successful bidders who were allotted shares in the primary issue were sitting on listing losses of ₹4,500 (₹0.75 x 6,000) per lot as soon as the stock started trading on exchanges.

Neopolitan Pizza and Foods IPO details

The subscription for the ₹12-crore Neopolitan Pizza and Foods IPO started from September 30 and went on till October 4. The public offer was subscribed by almost 33 times during the four-day bidding period, with the company receiving bids for 18.65 crore shares compared with 57 lakh shares on offer.

The retail investors’ category was subscribed almost 43 times, while the non-institutional investors’ (NII) portion was overbid by nearly 21 times.

The Neopolitan Pizza and Foods IPO was a fixed-price issue made up entirely of a fresh issuance of 60 lakh shares of face value of ₹10 each, with no offer-for-sale (OFS) component.

Shares in the NeoPolitan Pizza and Foods IPO were offered at a price of ₹20 per share in a lot size of 6,000 units.

The company had said that it proposed to utilise the funds raised through the issue towards expansion of the retail network by launching 16 new quick service restaurants (QSRs). A portion of the funds raised would be used to pay security deposit and advance rent and brokerage charges, while some part of the proceeds would go towards working capital requirements and for general corporate expenses.

Incorporated in 2012, Neopolitan Pizza and Foods started in Gujarat and then expanded across India. The company has two segments: restaurant operations and agricultural commodity trading.

Neopolitan Pizza operates its own restaurants as well as those opened through the franchise model. It specialises in Neapolitan-style pizza made with fresh ingredients and offers a variety of toppings, including gluten-free and vegetarian options.

The company also trades agricultural commodities such as wheat, rice, tomatoes and onions.

During the financial year 2023-24, Neopolitan Pizza’s revenue increased by 120% to ₹44 crore compared with ₹20 crore in the previous financial year 2022-23. Profit after tax (PAT) surged 80% to ₹ 2.1 crore in FY24 from ₹1.17 crore in FY23.