Supreme Facility Management, a leader in integrated facility management, supply chain solutions, employee transportation, and corporate food solutions, has over 40 years of experience. Established in 1983 under the L. V. Shinde Group, the company excels in providing production support services, optimizing operations through its Operational Excellence programs. Their focus on safety and sustainability makes them a one-stop solution provider, enhancing the employee experience for corporate clients.

Supreme Facility Management IPO Details

The Supreme Facility Management IPO is a Book Built Issue of ₹50 Crores, consisting entirely of a Fresh Issue of 65.79 Lakh Shares. The IPO opens on December 11, 2024, and closes on December 13, 2024. The price band is set between ₹72 and ₹76 per equity share, with a lot size of 1,600 shares. Retail investors are required to invest a minimum of ₹1,21,600, while High-Net-Worth Individuals (HNIs) need to invest at least 2 lots (3,200 shares), totaling ₹2,43,200.

At the upper end of the IPO price range, the Market Capitalisation of the company will be ₹188.70 Crores. The allotment is expected to be finalized on December 16, 2024, with shares listing on the NSE SME on December 18, 2024.

Grey Market Premium (GMP) and Subscription Status

As of December 13, 2024, the Supreme Facility Management IPO has been subscribed 25.71 times on its final day of the subscription period. The Grey Market Premium (GMP) is currently ₹15, indicating a potential 19.20% gain on listing. The expected listing price is ₹91, based on the GMP trend.

It’s important to note that GMP is speculative and should be considered for informational purposes only. The actual price discovery happens after the shares list on the stock exchange.

Financial Performance & Valuation

Supreme Facility Management has shown solid growth, with revenues rising from ₹23,668.80 Lakh in FY22 to ₹35,695.39 Lakh in FY23. Their EBITDA also improved from ₹1,784.99 Lakh in FY22 to ₹2,962.90 Lakh in FY23. The profit after tax (PAT) for FY24 reached ₹272.08 Lakh, up from ₹426.47 Lakh in FY22. The company’s pre-issue P/E ratio stands at 18.72x, while the post-issue P/E ratio is 22.65x, making the IPO fairly priced.

The company boasts strong ROCE and RoE for FY24 at 23.10% and 21.29%, respectively, signaling efficient use of capital.

Objectives of the Supreme Facility Management IPO

The proceeds from the Fresh Issue will be utilized for the following purposes:

1. ₹30,00 Lakh for funding working capital requirements.
2. ₹75,00 Lakh for pursuing inorganic growth initiatives.
3. For general corporate purposes.

Investment Recommendation

Given the solid financial performance, attractive valuation, and potential listing gains indicated by the GMP, we recommend investors to apply for the Supreme Facility Management IPO, both for listing gains and long-term investment.

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