The Supreme Facility Management IPO opens for subscription on December 11, 2024, and will close on December 13, 2024. The issue is entirely a fresh issue of 65.79 lakh shares, with a total value of ₹50.00 crores. The price band for the IPO is set between ₹72 and ₹76 per share. Retail investors can apply for a minimum lot size of 1,600 shares, amounting to a minimum investment of ₹121,600. For High Net-Worth Individuals (HNIs), the minimum application is for 2 lots (3,200 shares), totaling ₹243,200. The allotment of shares will be finalized by Monday, December 16, 2024, and the IPO is expected to list on NSE SME on Wednesday, December 18, 2024.
About Supreme Facility Management IPO
Supreme Facility Management Limited, established in 2005, provides integrated facility management and support services to businesses. Their services are divided into two segments: Integrated Facilities Management (including housekeeping, cleaning, sanitizing, pest control, electrical, plumbing, and staffing) and Support Services (employee transportation, production support, and corporate food services).
The company offers B2B solutions, typically through long-term contracts, ensuring recurring revenue. With a workforce of 10,935 employees, Supreme Facility Management has experienced strong growth, including a 7.91% increase in revenue and a 33.8% rise in profit after tax (PAT). The company’s competitive strengths include a diverse service portfolio, strong customer relationships, and a focus on technology and innovation.
Supreme Facility Management IPO Details
| Particulars | Details |
|---|---|
| IPO Opening Date | December 11, 2024 |
| IPO Closing Date | December 13, 2024 |
| Listing Date | December 18, 2024 (Tentative) |
| Face Value | ₹10 per share |
| Price Band | ₹72 to ₹76 per share |
| Lot Size | 1,600 shares |
| Total Issue Size | 6,579,200 shares (aggregating up to ₹50.00 Cr) |
| Fresh Issue | 6,579,200 shares (aggregating up to ₹50.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Shareholding Pre-Issue | 18,250,000 shares |
| Shareholding Post-Issue | 24,829,200 shares |
| Market Maker Portion | 329,600 shares |
| Minimum Investment for Retail Investors | ₹121,600 (for 1 lot) |
| Minimum Investment for HNIs | ₹243,200 (for 2 lots) |
Supreme Facility Management IPO Dates
| Particulars | Details |
|---|---|
| IPO Opening Date | Wednesday, December 11, 2024 |
| IPO Closing Date | Friday, December 13, 2024 |
| Basis of Allotment | Monday, December 16, 2024 |
| Initiation of Refunds | Tuesday, December 17, 2024 |
| Credit of Shares to Demat Account | Tuesday, December 17, 2024 |
| Listing Date | Wednesday, December 18, 2024 |
| Cut-off Time for UPI Mandate Confirmation | 5:00 PM on December 13, 2024 |
Supreme Facility Management IPO Lot Size Details
Investors can apply for a minimum of 1 lot, which consists of 1,600 shares, and can apply for additional lots in multiples of 1,600 shares. Below is the table showing the minimum and maximum investment amounts for retail investors and High Net-Worth Individuals (HNIs):
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,600 | ₹121,600 |
| Retail (Max) | 1 | 1,600 | ₹121,600 |
| HNI (Min) | 2 | 3,200 | ₹243,200 |
Supreme Facility Management IPO Promoter Holding Details
The promoters of Supreme Facility Management Limited include Lalasaheb Vitthalrao Shinde, Rajendra Lalasaheb Shinde, and Manisha Rajendra Shinde. Below is the table showing the pre-issue and post-issue shareholding details of the promoters:
| Particulars | Shareholding (%) |
|---|---|
| Shareholding Pre-Issue | 97.29% |
| Shareholding Post-Issue | 71.51% |
Additional Information:
- Pre-Issue Shareholding: Before the IPO, the promoters held a significant majority stake of 97.29% in the company.
- Post-Issue Shareholding: After the IPO, the promoter’s stake will be diluted to 71.51% due to the fresh issue of shares.
Supreme Facility Management IPO: Financial Performance Overview
Supreme Facility Management has shown consistent growth in its financial performance over the past few years. The company has reported an increase in both revenue and profit in the last financial year, demonstrating strong operational performance. Below is a snapshot of the company’s key financial figures for the past few years:
| Period Ended | Revenue (₹ Crores) | Expense (₹ Crores) | Profit After Tax (₹ Crores) | Assets (₹ Crores) |
|---|---|---|---|---|
| 2022 | ₹236.69 | ₹230.92 | ₹3.88 | ₹115.34 |
| 2023 | ₹330.78 | ₹323.50 | ₹5.54 | ₹147.72 |
| 2024 | ₹356.95 | ₹346.02 | ₹7.42 | ₹175.52 |
| June 2024 (Half Year) | ₹99.33 | ₹95.73 | ₹2.41 | ₹203.22 |
Key Highlights:
- Revenue Growth: The company’s revenue grew significantly from ₹236.69 crores in 2022 to ₹356.95 crores in 2024, showing an increase of 50.74% over the two years.
- Profit Growth: The Profit After Tax (PAT) also showed a steady rise, from ₹3.88 crores in 2022 to ₹7.42 crores in 2024, marking an improvement of 92.71%.
- Assets Increase: The total assets of the company have grown from ₹115.34 crores in 2022 to ₹175.52 crores in 2024.
- Strong Performance in 2024: For the first half of the financial year 2024 (ending June), the company reported a revenue of ₹99.33 crores and a profit of ₹2.41 crores, indicating a healthy performance trajectory.
Supreme Facility Management IPO Valuation Metrics – FY2024
The following table provides key valuation metrics for Supreme Facility Management for FY2024, helping investors gauge the company’s financial health and performance:
| KPI | Values |
|---|---|
| Return on Equity (ROE) | 21.29% |
| Return on Capital Employed (ROCE) | 23.10% |
| EBITDA Margin | 8.08% |
| Profit After Tax (PAT) Margin | 2.09% |
| Debt to Equity Ratio | 2.49 |
| Earning Per Share (EPS) | ₹4.06 (Basic) |
| Price/Earning (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 21.29% |
| Net Asset Value (NAV) | ₹19.08 |
Key Insights:
ROE and RoNW: Both Return on Equity (ROE) and Return on Net Worth (RoNW) stand strong at 21.29%, indicating efficient use of shareholders’ equity and capital to generate profits.
ROCE: Return on Capital Employed (ROCE) is robust at 23.10%, showcasing the company’s effective use of its capital to generate operating profits.
EBITDA Margin: The company has an EBITDA margin of 8.08%, reflecting healthy operational efficiency.
PAT Margin: The Profit After Tax (PAT) margin is 2.09%, indicating the profitability after all expenses.
Debt to Equity Ratio: With a Debt to Equity ratio of 2.49, the company has a relatively high debt load compared to its equity, which could be a point to watch for future financial stability.
EPS: The Earning Per Share (EPS) stands at ₹4.06, which shows the earnings available to shareholders for each share.
NAV: The Net Asset Value (NAV) is ₹19.08 per share, offering a valuable measure of the company’s assets relative to its share price.
Supreme Facility Management IPO: Objects of the Issue
| Objective | Details |
|---|---|
| Funding Working Capital Requirements | The company intends to use a portion of the proceeds to meet its working capital needs, ensuring smooth operational continuity and business growth. |
| Pursuing Inorganic Initiatives | The company plans to utilize funds for exploring inorganic growth opportunities, including potential acquisitions and partnerships to expand its service portfolio and market presence. |
| General Corporate Purposes | A part of the funds will be allocated for general corporate purposes, enhancing the company’s overall financial stability and flexibility. |
Overview:
Supreme Facility Management IPO’s proceeds will support essential growth initiatives, from bolstering working capital for day-to-day operations to pursuing strategic acquisitions for long-term expansion. The general corporate purposes will provide the company with financial flexibility for future opportunities.
Supreme Facility Management IPO Registrar
- KFin Technologies Limited
- Phone: 04067162222, 04079611000
- Email:Â sfml.ipo@kfintech.com
- Website:Â https://kosmic.kfintech.com/ipostatus/
Company Address
- Supreme Facility Management Limited
- A-120,
- Jai Ganesh Vision,
- Akurdi, Pune 411035
- Phone: +91 9637811000
- Email:Â compliance@supremefacility.com
- Website:Â https://supremefacility.com/
Conclusion
The Supreme Facility Management IPO offers an opportunity to invest in a growing company with a diverse range of facility management services. With strong financials and plans for expansion, the IPO could appeal to investors looking for growth in the services sector. However, investors should consider the company’s debt levels and competitive landscape before making a decision. At the offered price band of ₹72 to ₹76 per share, this IPO presents potential for long-term growth, but due diligence is advised.
Supreme Facility Management IPO FAQs
What is the Supreme Facility Management IPO?
The Supreme Facility Management IPO is an initial public offering through which Supreme Facility Management Ltd. plans to raise up to ₹50 crore by issuing 6,579,200 fresh shares at a price band of ₹72 to ₹76 per share.
What is the IPO opening and closing date?
The IPO opens on December 11, 2024 and closes on December 13, 2024.
What is the price band for the IPO?
The price band for the Supreme Facility Management IPO is set between ₹72 to ₹76 per share.
What is the lot size for the IPO?
The minimum lot size is 1,600 shares, and the minimum investment required for retail investors is ₹121,600.
What are the objectives of the IPO?
The funds raised from the IPO will be used for:
- Funding working capital requirements
- Pursuing inorganic initiatives (such as acquisitions)
- General corporate purposes
When will the shares be credited to my Demat account?
The shares will be credited to the Demat account on December 17, 2024.
When will the IPO be listed on the stock exchange?
The Supreme Facility Management IPO is expected to be listed on the NSE SME on December 18, 2024.
What is the minimum investment required for retail investors?
The minimum investment for retail investors is ₹121,600, which covers 1 lot of 1,600 shares.
What is the company’s financial performance?
In FY2024, the company reported revenue of ₹356.95 crores and a profit after tax (PAT) of ₹7.42 crores, showing a consistent growth trajectory.
Who are the promoters of Supreme Facility Management?
The promoters of Supreme Facility Management are Lalasaheb Vitthalrao Shinde, Rajendra Lalasaheb Shinde, and Manisha Rajendra Shinde.
Is the IPO only for retail investors?
No, the IPO is open to both retail investors and High Net-Worth Individuals (HNIs), with different lot sizes and investment amounts.
What is the shareholding pattern post-issue?
Post-issue, the promoters’ stake will reduce to 71.51% from 97.29% pre-issue.
Can I apply for the IPO through UPI?
Yes, you can apply for the IPO through UPI, and the cut-off time for UPI mandate confirmation is 5 PM on December 13, 2024.
What is the company’s business model?
Supreme Facility Management offers integrated facility management services including housekeeping, cleaning, sanitization, staffing, employee transport, and corporate food services to businesses across various sectors.