Supreme Facility Management IPO Day 1: NSE SME issue fully subscribed on high retail demand; check price band and more

Supreme Facility Management Ltd’s initial public offering (IPO) was fully subscribed on the first day of the bidding on Wednesday, December 11.

The integrated facility management and support services provider’s IPO attracted bids for more than 1.07 crore shares against 62.49 lakh shares on offer, leading to an overall subscription of 1.72 times.

The retail investors showed the highest demand on the first day of subscription by applying for over 85.72 lakh shares compared to 28.12 lakh shares on offer. The retail category was booked 3.04 times. The Non-Institutional Investors (NIIs) placed bids for 15.6 lakh shares compared to 28.11 lakh shares reserved for the category. The NIIs segment was subscribed 55%. The Qualified Institutional Buyers (QIBs) also fully subscribed their quota by applying for 6.62 lakh shares against the 6.25 lakh shares.

Supreme Facility Management IPO details

The ₹50-crore IPO of Supreme Facility Management comprises a fresh issue of 65.79 lakh shares and no offer-for-sale (OFS) component. The IPO price band has been fixed at ₹72 to ₹76 per share.

The lot size is 1,600 shares for retail investors, requiring a minimum investment of ₹1,21,600.

Promoter and promoter group entities hold a 97.29 % stake in the company (pre-IPO) and public shareholders have a 2.71% stake in the company.

Khandwala Securities Ltd is the book-running lead manager of the IPO. Kfin Technologies Limited is the IPO registrar and Aftertrade Broking is the market maker of the offer.

Supreme Facility Management IPO listing date

Supreme Facility Management IPO is open for subscription from December 11 to December 13.

The company has proposed to finalise the share allotment status on Monday, December 16. The refunds and credit of shares to Demat accounts will be initiated on December 17.

The company has proposed to list shares on the NSE SME platform on Wednesday, December 18.

Use of IPO proceeds

The integrated facility services provider has proposed ₹30 crore of the IPO proceeds to fund its working capital requirements in FY 2025 and FY 2026.

As of June 30, 2024, its consolidated outstanding debts stood at ₹31.53 crore.

About Supreme Facility Management

Supreme Facility Management provides integrated facility management services and other support services in the B2B segment.

Its facility management service portfolio broadly includes soft services such as housekeeping and cleaning services, hard services such as maintenance, repair, overhaul and performance management of electrical, plumbing and maintenance services and staffing services where it supplies the workforce with various support services.

The company reported revenue of ₹356.95 crore for the fiscal ended on March 31, 2024, against ₹330.78 crore in the preceding financial year.

Its profit after tax in FY24 stood at ₹8.33 crore against ₹5.89 crore in FY23.