Supreme Facility Management IPO: Date, Price, GMP, and Details

Supreme Facility Management IPO-Complete Overview

Supreme Facility Management IPO under the SME IPO category is a book-built issue of Rs.50 crore by Supreme Facility Management Limited, incorporated in 2005, it offers integrated facility management services such as cleaning and disinfecting, staffing, and corporate food solutions in service to other businesses.

It comprises 2 divisions: Integrated Facilities Management and Support Services.

Integrated Facilities Management includes:

Soft Services: Incorporating housekeeping and cleaning, disinfecting and sanitizing, pest control, gardening, and exterior building cleaning.

Hard Services: Services associated with electrical, plumbing, or maintenance, as well as power equipment management such as generators and UPS systems.

Staffing Solutions: Providing human resources for different support services, based upon client demands.

Support Services include:

ET Services generally provide employee transportation solutions but are primarily oriented towards corporate clients working to satisfy their employee commuting needs, meeting with the onboard transportation for their designated place of pick up and drop off. Shuttle and Bus service also belong to this segment.

Production Support Service: A way of outsourcing where specific tasks or processes are handed over to external entities or contractors while maintaining overall control of the production style.

Corporate Food Service Segment: The delivery of food and allied services within the business premises itself. These services pertain to and serve the dining requirements of employees, blue-collar workers, clients, and guests on the corporate premises. It comprises catering, cafeteria management, vending service, and event planning.

These services are directed towards businesses and are widely yearly. Once a client avails of any service, revenue can be kept flowing in for a lengthy period of time. These services commonly integrate people, processes, and technology while building and delivering service.

Supreme Facility Management IPO Overview

This Supreme Facility Management IPO date is 11 December 2024, and its ‘initial public offering’ will end on 13 December 2024. 

The Rs.50 crore new SME IPO comprises a wholly fresh issue of 65.79 lac Shares.

This upcoming IPO date is on December 11, 2024. Supreme Facility Management IPO Price is Rs.72 to Rs.76 for each Share. 

The expected IPO listing date is Wednesday, 18 December 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue grew by 7.91% and PAT increased by 33.8% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in lac)

 

Service-wise Revenue Breakdown  

(Amount in lac)

 

Product-wise Revenue Breakdown  

(Amount in lac)

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Meeting their working capital needs

• Taking part in inorganic projects

• General corporate purposes.

Peers of Supreme Facility Management Ltd.

 There are no listed companies in India that are engaged in the same or similar business of comparable size.

Evaluation

The Supreme Facility Management Limited IPO share price is Rs.72 to Rs.76 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.06 from the last year, the resulting P/E ratio is 18.72x.

Considering the weighted EPS of Rs.3.40 for the last three years, the P/E ratio is 22.35x.

Comparative Analysis With Listed Peers

No listed peers, hence no comparison is possible.

 

IPO's Strengths 

• Heavy portfolio

• Years of long-scale relationships with customers from a variety of sectors whose business always recurs

• Wide presence with a big and efficient workforce coupled with strong recruitment capabilities

• Technology-driven approach in running the company now and into the future

• Highly experienced Management team. 

 

IPO’s Weaknesses

• Long-term contracts are relied upon to stabilize revenues.

• Limited territorial presence as compared to bigger competitors.

• Vulnerable to fluctuations in demand for such services-support services.

• Labor costs are inflated by continuity rather large health fieldwork force on an ongoing basis.

• Some outsourced services for the company are those for which they depend on third-party contractors. 

 

Supreme Facility Management IPO GMP Today

Supreme Facility Management IPO GMP is Rs.0 as of 10 December 2024. With a price of Rs.76 per Share, the expected Supreme Facility IPO listing price is Rs.76 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from December 11 to December 13, 2024, with allotment on December 16, refund initiation on December 17, and listing on December 18, 2024.

 

Supreme Facility IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 6,579,200 Shares (Rs.50 Cr).

Supreme Facility Management IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1600 Shares) amounting to Rs.1,21,600 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (3200 Shares) amounting to Rs.2,43,200.

 

IPO Reservation (% of Net Issue)

 

 

 

Promoters And Management of Supreme Facility Management Ltd.

• Lalasaheb Vitthalrao Shinde

• Rajendra Lalasaheb Shinde

• Manisha Rajendra Shinde.

 

 

IPO Lead Managers

• Khandwala Securities Limited.
  
  

Dividend Policy

The company has not declared any dividends in any financial year.

Conclusion

The Supreme Facility Management IPO allows investment in a growing facility management company with a diversified service portfolio and management with a wealth of expertise. The company enjoys good features such as recurrent revenues and technology-driven operations, but, on the other hand, it struggles somewhat with dependency on long-term contracts and third-party contractors. Before making any investments, investors need to take a good look at the financials and risks involved. 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

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