About the Company:
Neopolitan Pizza Ltd is a fast food chain offering customers a single item to a full-fledged menu as well as Unlimited Fusion Italian Pizza Meal
Company operates in two segments, namely the restaurant business and the trading of agricultural commodities. In the restaurant business, the company owns and operates its own restaurants as well as operates through a franchise model.
The company offers Neopolitan-style pizza, which is a traditional Italian pizza made with fresh ingredients. The menu includes a variety of toppings, and the company offers gluten-free and vegetarian options.
The brand was named “Neopolitan Pizza” a name derived from little village of Italy where Pizza originated. The concept continued to thrive after adopting the Unlimited Buffet idea “ALL YOU CAN EAT”.
Neopolitan Pizza is ISO 22000:2018 Certified company. The newly re-designed and rebranded Neopolitan Pizza concept pushes the limits of the regular restaurant experience by offering a variety of Soup, Exotic Salads, freshly baked Bread, Pasta, Hand Tossed Pizza and Dessert including such popular items as flat bread pizzas and many more.
The concept of Neopolitan Pizza is very family oriented and kid friendly.
In addition to the restaurant business, Neopolitan Pizza Limited also engages in the trading of agricultural commodities. The company deals in products such as wheat, rice, tomatoes, onions, and other such products.
Company’s History:
Neopolitan Pizza specializes in take-out and delivery of pizza made from the freshest and top-quality ingredients. Company’s franchisee’s follow the same strict guidelines when preparing any Neopolitan Pizza products, thus guaranteeing consistent quality across all outlets.
With the vision of providing quality food with a quick and efficient service at a very affordable price, the group of Indo Canadian Entrepreneurs, led by Mr. Mukund Purohit plans to open ‘Neopolitan Pizza’ outlet at Multiple locations across India.
The choice of the menu and the needed supply chain has already been built for an easy multi location/cities scale up in form of Company stores and the franchisee network.
Promoters Background:
Promoters of the company, Mukund Purohit and Arti Mukund Purohit have more than 15 years of experience in Quick Service Restaurants (QSR) Industry as well as Food & Beverages industry and with their innovative business ideas, in-depth knowledge and excellent management skills, our company has served our customers proficiently.
Company operates under the following segments:
- Trading of Agriculture Commodities.
- Quick Service Restaurants (QSR).
Trading of Agriculture Commodities.
The trading segment of the business aims to source high-quality agricultural products from trusted suppliers and sell them to customers at competitive prices.
The company’s strategy is to leverage its expertise in the food industry to offer a unique and high-quality dining experience to its customers while also diversifying its revenue streams by engaging in commodity trading.
The company’s focus on sourcing high-quality ingredients for its pizza also applies to its trading business, where the company aims to ensure that its products meet strict quality standards.
Company has adequate storage capacity of 4,000 sq.ft. for storage of agricultural commodities which is well connected with Road Network.
Quick Service Restaurants (QSR).
Neopolitan Pizza, offer a wide range of selection to cater to the different taste preferences of our customers, across all our owned restaurants and franchises.
As of December 31, 2023, Company had 19 Restaurants located in more than 16 cities, spread across 2 states and union territories in India. Company opened our first restaurant in February’ 2012.
Revenue generated from our Restaurants represented 2.19%, 7.25%, 13.16%, and 8.40% of our revenue from operations in Fiscals 2021, 2022, 2023 and for the period ended December 31, 2023 respectively.
Company’s Revenue from Trading of Agriculture Commodities & Restaurants:(in Lakhs)
Company operates Quick Service Restaurants (QSR) in two distinct models catering to different customer needs i.e.
(1) Dining Restaurant.
(2) Express Restaurant.
Dining Restaurant: The Dining Restaurant model offers a spacious environment suitable for larger gatherings and provides an unlimited Italian buffet experience. In Dining Restaurant, the minimum carpet area ranges from 1,000 sq.ft. and above and seating capacity more than 50 customers.
Express Restaurant: The Express Restaurant model focuses on a smaller space with limited seating, perfect for individuals or smaller groups looking for a quick and customizable dining experience. In Express Restaurant, the minimum carpet area ranges from 250 sq.ft. to 1000 sq.ft. and seating capacity ranging from 10 to 50 customers.
Company Operates Restaurants on the following Models:
- Company owned Company Operated Restaurants (COCO). (1 restaurant)
- Franchisee Owned Company Operated Restaurants (FOCO). (1 restaurant)
- Franchisee Owned Franchisee Operated Restaurants (FOFO).(17 restaurants)
Company Owned Company Operated Outlets (COCO):
The restaurants are managed, financed and controlled directly by the Company and its personnel. As on date, Company has 1 (one) Company Owned Company Operated (COCO) Restaurants.
COCO restaurants are those restaurants which are completely owned by Company and also operated by company. Here, company finalises a location, executes rent agreement, all the interior work is done on company’s expense.
All the sales are booked under company and all the expenses of the restaurants are also paid by the company also like rent, salary, light bill, etc.
Franchisee Owned Company Operated Outlets (FOCO):
There are franchise stores that are managed and funded by the Company. Out of these, the Company directly pays the lease rentals for the stores.
The Company bears the expenses such as salary of the staff, electricity bill, municipal taxes, other expenditures for operating the outlets. The Franchisee charges a fixed commission based on the sales.
Franchisee Owned Franchisee Operated Stores (FOFO):
Most of the Franchise stores of the Company are Franchisee operated. The Company and Franchisee enters into agreement which is subject to renewal based on Franchisee performance and other factors.
The Franchisee provides Franchisee Fee (one time), Royalty (monthly), Billing Software (one time) to the company and operates the store at its own cost. The Franchisee bears all the costs and expenditure, and pays royalty at a fixed rate.
Franchisee Owned Franchisee Operated Stores (FOFO) Store Locations:
The table below sets out the geographical spread of our QSRs, as on December 31, 2023:
Break-up of Revenue from Restaurants: (in Lakhs)
Competitive Strengths of Company’s QSR Segment:
Neopolitan Pizza Limited is a Quick Service Restaurant (QSR) with a presence in India through both owned restaurants and franchise model. Below are some of its competitive strengths:
Authenticity: Neopolitan Pizza Limited is known for its authentic Neopolitan-style pizza, which is made using traditional techniques and ingredients. This sets it apart from other pizza chains in India, which often offer more localized variations of pizza.
Menu diversity: While pizza is the main offering at Neopolitan Pizza Limited, the menu is diverse enough to cater to different tastes and dietary preferences. The menu includes vegetarian and vegan options, as well as salads, pasta, burger, sandwiches, and desserts.
Strong branding: Neopolitan Pizza Limited has built a strong brand identity through consistent branding across all its outlets and marketing channels. This has helped to create a sense of trust and familiarity among customers, which in turn drives repeat business.
Efficient operations: The company has developed efficient systems and processes for food preparation, ordering, and delivery. This allows it to provide quick and reliable service, even during peak hours.
Management Team:
- Mr. Mukund Purohit (Designation: Managing Director & Chief Financial Officer)
- Mr. Ashvin Chandel (Designation: Executive Director)
Objectives of the Issue:
Fresh Issue: (Rs. Will be Updated)
- Expansion of our Retail Network by launching 16 new Quick Service Restaurants (QSR).
- Security Deposit and Advance Rent.
- Brokerage Charges.
- To meet Working Capital Requirements.
- To meet the Issue Expenses.
- General Corporate Purposes.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Expansion of our Retail Network by launching 25 new Quick Service Restaurants (QSR) | 7.08 cr |
| Security Deposit and Advance Rent | 0.26 cr |
| Brokerage Charges | 0.13 cr |
| Working Capital Requirements | 3.52 cr |
| General Corporate Expenses | 0.71 cr |
| Issue Related Expenses | 0.30 cr |
| Net Proceeds | 12.0 cr |
The proposed Schedule of Implementation of 16 new QSRs is as follows:
The 16 new QSR are planned to be opened in the folloging Locations: (COCO model):
15 Stores in Gujarat , Vastrapur, Gurukul (Ahmedabad), Varachha, Parle Point,Vesu (Surat), Manjalpur, Nizampura, Gotri Road (Vadodara), Kalavad Road (Rajkot), Near Azad Chowk (Ambaji), Hill Drive Road, Bharat Nagar Road (Bhavnagar), Zadeshwar Road (Bharuch), Bilesware At. (Somnath), Tinbatti Chowk (Dwarka) and 1 store in Goumukh Road, Mount Abu (Rajasthan).
Peer Group Comparison:
- We believe that none of the listed companies in India offer products or services across the various business segments in which Neopolitan Pizza Ltd operates. Hence a strict comparison is not possible.
Positives for the Company:
Company plans to Expand the Footprint.
- Currently company has total 20 outlets (COCO, FOCO & FOFO) and has plans to continue to expand the presence in India by opening new company-owned outlets and partnering with more franchisees.
- Company will prioritize locations that are strategic and have high footfall, while also ensuring that quality and customer service are maintained. Company will work closely with franchisees to ensure that they are equipped with the necessary training, tools, and support to operate their outlets effectively.
Company Plans to Enter Frozen Pizza Segment.
- Currently Neopolitan Pizza has not entered into the frozen pizza segment and the same is in trial stage.
- Company shall offer a range of frozen pizzas that cater to different tastes and preferences. The company can leverage its expertise in making authentic Neopolitan pizzas to create frozen pizza options that are unique and differentiated from competitors.
- To succeed in the frozen pizza segment, company will need to establish a strong distribution network that can reach customers across India.
Expansion of Retail Network by launching Exclusive Brand Outlets.
- To promote the brand further and meet the need for the growth as the market expands, company intends to open 25 Quick Service Restaurants (QSR) for our brand ‘NEOPOLITAN PIZZA’ on Company Owned Company Operated (COCO) model which shall be operational by September’ 2024.
- The premises for the proposed new restaurants are expected to be taken on a lease basis.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 31st Dec 23 |
|---|---|---|---|---|
| Revenue | 6.70 | 16.30 | 20.04 | 30.33 |
| Net Profit | 0.11 | 0.18 | 1.16 | 1.60 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | Coming Soon |
| Issue Closes on | Coming Soon |
| Issue Price | Will be Updated |
| Face Value | Will be Updated |
| Retail Category Allocation | Will be Updated |
| Minimum Lot | Will be Updated |
| Minimum Investment | Will be Updated |
| Issue Constitutes | Will be Updated |
| Issue Size | Will be Updated |
| Market Cap | Will be Updated |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | Will be Updated |
| Equity Shares Offered (OFS) | Will be Updated |
| Total Equity Shares Offered (Fresh + OFS) | Will be Updated |
| Equity Shares Prior to the Issue | Will be Updated |
| Equity Shares after the Issue | Will be Updated |
Important Dates:
| Finalization of Basis of Allotment | Will be Updated |
| Initiation of Refunds | Will be Updated |
| Credit of Equity Shares: | Will be Updated |
| Listing Date: | Will be Updated |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 1.34 | Will be Updated | 8.45% | 12.56 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Neopolitan Pizza Ltd stands as a distinctive fast-food chain, offering patrons a spectrum ranging from a single signature item to an extensive fusion Italian menu. Its operational domain spans two segments: the restaurant business and the trading of agricultural commodities. While the Restaurant business includes both self-owned and franchised outlets, the Trading business dominates the revenue stream, constituting approximately 98% of the company’s earnings.
Presently, the company faces a disparity in revenue generation between its Company-Owned Company-Operated (COCO) and Franchisee-Owned Franchisee-Operated (FOFO) outlets. While COCO outlets yield a commendable average yearly revenue of approximately 1 crore, FOFO outlets lag significantly with an average yearly revenue of only Rs. 2 lakhs, posing challenges to operational profitability for franchisees. In a strategic move to bolster its restaurant business, Neopolitan Pizza Ltd intends to utilize IPO funds to open 16 additional COCO outlets. This endeavor holds promise for enhanced revenue streams in the future. However, the success of this expansion venture remains pivotal to the company’s trajectory. Given the inherent risks associated with the venture, prospective investors are advised to assess their risk appetite judiciously. While the IPO presents an opportunity for risk-taking investors, others may opt to observe the company’s performance over subsequent quarters before considering investment. |
| Company Contact Info: |
|---|
| Neopolitan Pizza Limited 434 & 435, SWC Hub, Opp. Rajpath Complex, Vasna Bhayli Road, Vadodara – 391410, Gujarat, India. Contact No: +91 95740 00428 Email ID: csneo@neopolitanpizza.in Website: www.neopolitanpizza.in |
| Registrar to the Issue: |
|---|
| BIGSHARE SERVICES PRIVATE LIMITED Office No S62, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East), Mumbai 400093 Telephone : 022 62638200 Email : ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| TURNAROUND CORPORATE ADVISORS PRIVATE LIMITED 714, Vishwadeep Bulding, Plot No. 4, District Centre, Janak Puri, New Delhi 110058 Telephone: +91 11 45510390, Email: info@tcagroup.in Website: https://tcagroup.in |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
