The Supreme Facility Management IPO(SFML IPO) is set to open from December 11, 2024, to December 13, 2024, giving investors the chance to participate in the public offering of one of India’s leading integrated facility management providers. With a diverse portfolio of services spanning across multiple industries, Supreme Facility Management offers a compelling growth story. In this blog, we’ll explore the IPO details, company background, financial performance, and investment insights to help you decide if this IPO is right for you.
About Supreme Facility Management
Founded in 2005, Supreme Facility Management has established itself as a reliable service provider in the integrated facility management (IFM) industry. The company specializes in soft services such as housekeeping, cleaning, disinfection, pest control, facade cleaning, and horticulture. Additionally, it offers hard services like electrical, plumbing, and maintenance management.
The company has expanded its portfolio to include staffing solutions for workforce management, employee transportation, corporate catering, and third-party logistics (3PL) for supply chain management. This diverse range of services makes Supreme Facility Management a one-stop solution for businesses in need of operational support and facilities management.
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Supreme Facility Management IPO Details
- IPO Opening Date: December 11, 2024
- IPO Closing Date: December 13, 2024
- Price Band: ₹72 to ₹76 per share
- Face Value: ₹10 per share
- Lot Size: 1,600 shares
- Issue Size: ₹50.00 Cr
- Listing Date: December 18, 2024
- Listing At: NSE SME
- Issue Type: Book Built Issue IPO
The Supreme Facility Management IPO (SFML IPO) consists of 6,579,200 shares with a total issue size of ₹50.00 Cr. This is a fresh issue of shares, aimed at raising capital for the company’s business growth and expansion plans.
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Company’s Financial Overview
The company has shown steady growth in terms of revenue and profit over the past few years. Here’s a look at the key financials of Supreme Facility Management:
Revenue (in Rs. Cr)
- 2022: ₹236
- 2023: ₹330
- 2024: ₹355
Profit (in Rs. Cr)
- 2022: ₹4.26
- 2023: ₹5.89
- 2024: ₹8.33
Total Assets (in Rs. Cr)
- 2022: ₹115
- 2023: ₹148
- 2024: ₹176
The financials reflect consistent growth, with the company successfully increasing its revenue and profitability over the last few years. This positive trend positions Supreme Facility Management as a potentially strong player in the growing facility management sector.
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Promoter and Shareholding Details
The company’s promoters are Lalasaheb Vitthalrao Shinde, Rajendra Lalasaheb Shinde, and Manisha Rajendra Shinde. The shareholding structure before and after the IPO is as follows:
- Shareholding Pre-IPO: 97.29%
- Shareholding Post-IPO: 71.51%
The post-IPO reduction in the promoters’ shareholding indicates a dilution of control, which could be a sign of the company’s intention to widen its investor base and raise capital for future growth.
IPO Lot Size and Application Details
Investors interested in the Supreme Facility Management IPO can apply for a minimum of 1,600 shares, with a total investment of ₹121,600 at the lower price band. The breakdown of the lot size and investment amounts is as follows:
| Investor Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,600 | ₹121,600 |
| Retail (Max) | 1 | 1,600 | ₹121,600 |
| HNI (Min) | 2 | 3,200 | ₹243,200 |
Given the high lot size, this IPO is more suited for high-net-worth individuals (HNIs) or institutional investors, with a minimum investment requirement of ₹121,600.
Key Performance Indicators (KPIs)
The market capitalization of Supreme Facility Management after the IPO is estimated at ₹188.7 Cr. Here are some critical KPIs to consider:
- ROCE (Return on Capital Employed): 23.10%
- Debt/Equity Ratio: 2.49
- RoNW (Return on Net Worth): 21.29%
- P/BV (Price to Book Value): 3.98
- PAT Margin: 2.09%
While the company boasts a high ROCE and RoNW, its relatively high debt-equity ratio could be a concern for some investors. The company’s PAT margin is also modest, which reflects its operational costs.
Supreme Facility Management IPO Registrar
For any queries related to the IPO, investors can contact the Registrar, Kfin Technologies Limited:
- Phone: 04067162222, 04079611000
- Email: sfml.ipo@kfintech.com
- Website: Kfintech IPO Status
Why Invest in Supreme Facility Management IPO?
Supreme Facility Management’s IPO presents an attractive investment opportunity for those looking to tap into the growing facility management sector. The company has a solid track record of revenue and profit growth, along with a wide array of integrated services catering to various industries. However, investors should be mindful of its high debt-to-equity ratio, which could affect its ability to manage debt levels in the future.
If you are an investor with an appetite for growth and willing to consider the associated risks, this IPO may provide a unique opportunity to benefit from India’s expanding service industry.
Conclusion
The Supreme Facility Management IPO offers a promising opportunity to invest in a company with strong growth potential in the integrated facility management industry. With an attractive business model and consistent growth in revenue and profit, Supreme Facility Management is well-positioned to capture market share in the sector. However, investors should conduct thorough research and carefully assess their risk tolerance before investing.
FAQs on Supreme Facility Management IPO
1. What is the price range for the Supreme Facility Management IPO?
The price range for the Supreme Facility Management IPO is ₹72 to ₹76 per share.
2. What is the lot size for the IPO?
The lot size is 1,600 shares, with a minimum investment of ₹121,600.
3. When is the IPO opening and closing?
The IPO opens on December 11, 2024 and closes on December 13, 2024.
4. When will the shares be listed?
The shares will be listed on December 18, 2024.
5. What is the market capitalization of Supreme Facility Management?
The market capitalization post-IPO is expected to be ₹188.7 Cr.
6. How can I apply for the Supreme Facility Management IPO?
Investors can apply for the IPO via ASBA through their bank or trading account.
7. Who are the promoters of Supreme Facility Management?
The promoters are Lalasaheb Vitthalrao Shinde, Rajendra Lalasaheb Shinde, and Manisha Rajendra Shinde.
8. What are the key KPIs for Supreme Facility Management?
The key KPIs include a ROCE of 23.10%, a debt-equity ratio of 2.49, and a RoNW of 21.29%.