Supreme Facility Management, a leading player in integrated facility management and corporate solutions, is launching its IPO with a book-built issue amounting to ₹50 crore. The IPO opens for subscription on December 11, 2024, and closes on December 13, 2024, with a tentative listing date set for December 18, 2024. The issue is entirely a fresh issue, offering 65.79 lakh shares.

Company Overview

Established in 1983 under the L. V. Shinde Group, Supreme Facility Management is a pioneer in facility management, supply chain solutions, employee transportation, corporate food services, and production support services. It emphasizes safety, sustainability, and streamlined operations to meet diverse corporate needs. Over its 40+ years of experience, the company has positioned itself as a trusted one-stop solution provider for optimizing operations and enhancing employee experiences.

Key IPO Details

• IPO Price Band: ₹72-₹76 per share

• Market Capitalization at Upper Price Band: ₹188.70 crore

• Lot Size: 1,600 shares

• Minimum Investment for Retail Investors: ₹1,21,600

• Minimum Investment for HNIs: 2 lots (₹2,43,200)

• Book-Running Lead Manager: Khandwala Securities Limited

• Registrar: KFin Technologies Limited

• Market Maker: Aftertrade Broking Private Limited

Objectives of the IPO

The proceeds from the fresh issue will be utilized for:

1. Working Capital Requirements: ₹30 crore

2. Inorganic Initiatives: ₹75 lakh

3. General Corporate Purposes

Financial Performance

Supreme Facility Management has demonstrated consistent growth over the years. Below are the financial highlights:

The company’s Return on Capital Employed (RoCE) for FY24 is 23.10%, while Return on Equity (RoE) stands at 21.29%. Pre-issue EPS is ₹4.06, and post-issue EPS is ₹3.36, with the IPO priced at a P/E ratio of 18.72x (pre-issue) and 22.65x (post-issue).

Grey Market Premium (GMP)

The Grey Market Premium (GMP) for the IPO is estimated at ₹15, indicating potential listing gains of 19.20%. However, investors are advised to focus on the company’s fundamentals rather than relying solely on GMP.

Subscription Status

As of 11:00 AM on December 12, 2024, the IPO has been subscribed 2.26 times, with strong demand from retail and institutional investors.

Allotment and Listing

The allotment date is scheduled for December 16, 2024, and investors can check their allotment status by:

1. Visiting the registrar’s website (KFin Technologies Limited).

2. Selecting Supreme Facility Management IPO from the dropdown.

3. Entering their application number, PAN, or DP Client ID.

4. Submitting the details to view their status.

Expert Review

Supreme Facility Management’s 40+ years of industry experience, coupled with its emphasis on safety, sustainability, and operational excellence, positions it as a robust investment opportunity. The company’s consistent growth in revenue and profitability, along with a strong RoE and RoCE, makes the IPO attractively priced for investors.

While the IPO’s P/E ratio of 22.65x is slightly above the industry average, the company’s strong financials and growth potential justify the valuation. Investors can consider applying for listing gains or long-term investment purposes.