On December 18, 2024, Supreme Facility Management shares made a tepid debut on the NSE SME platform, listing at ₹75 per share, which is a 1.32% discount to the issue price of ₹76. This debut performance was below market expectations, particularly as the grey market premium (GMP) ahead of the listing had indicated a 32% premium, with shares trading at ₹24 higher than the issue price. However, the listing did not live up to these earlier expectations.

The Supreme Facility Management IPO raised a total of ₹50 crore through a book-built issue, which was entirely a fresh issue of 65.79 lakh shares. The IPO had a price band of ₹72 to ₹76 per share, and it was subscribed 27.01 times in total, indicating strong investor interest. Within this, the retail category saw the highest subscription at 42.5 times, while qualified institutional buyers (QIBs) subscribed 8.24 times their reserved portion, and non-institutional investors (NIIs) subscribed 15.7 times the portion allotted to them.

Despite the high subscription, the listing performance did not reflect the strong demand seen in the subscription figures. Market analysts had anticipated a listing premium based on the strong GMP observed before the debut, but the actual listing price was lower than expected, dampening investor sentiment to some extent.

The company has stated that it intends to use the net proceeds from the IPO for working capital requirements, inorganic growth initiatives, and general corporate purposes. This indicates that the company is looking to expand its operations and strengthen its business infrastructure, which could eventually support its long-term growth trajectory.

Supreme Facility Management is a company that provides facility management services, including housekeeping, security, and other maintenance services for a range of industries. The company aims to capitalize on the growing demand for facility management services across India, particularly as businesses look to outsource these functions to focus on core operations.

The IPO was managed by Khandwala Securities, and Kfin Technologies served as the registrar for the issue. The listing on the NSE SME platform is part of the company's efforts to raise its profile and attract more institutional and retail investors to its stock.

The underwhelming debut of Supreme Facility Management shares may prompt some investors to reassess their outlook on the stock, especially given the earlier optimistic expectations based on the grey market premium. However, the long-term potential of the company, driven by its growth strategy and the expanding facility management market, could still make it a stock worth watching.

The Upcoming IPOs in this week and coming weeks are Transrail Lighting, Mamata Machinery, DAM Capital  Sanathan Textiles, Concord Enviro, Newmalayan Steel, Ventive Hospitality, Senores Pharmaceuticals, Carraro India, Solar91 Cleantech, Unimech Aerospace, Rosmerta Digital, Indo Farm, and Avanse FinancialThe Current active IPO is Identical Brain Studios and NACDAC Infrastructure.
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