Supreme Facility Management makes muted debut, shares list at 1.3% discount to IPO price

Supreme Facility Management Ltd made a muted stock market debut on Wednesday, December 18, with its shares listing nearly flat on the NSE SME platform.

The stock of the integrated facility management services provider opened at ₹75 apiece, down 1.31% compared to the initial public offering (IPO) price of ₹76 per share. After listing at a discount, shares of Supreme Facility Management declined as much as 5% to hit the lower circuit limit at ₹71.25 apiece on the NSE.

Within the initial 15 minutes of trade 12.91 crore shares changed hands on the stock exchange, while the trading value stood at ₹9.53 crore. The company’s market capitalisation stood at ₹176.91 crore.

As the minimum lot size per application was 1,600 shares, the investors who were allotted at least a single lot in the IPO subscription would have faced losses of ₹1,600 (₹1 x 1,600) after the listing of the shares at a discount.

Supreme Facility Management IPO details

The ₹50-crore initial public offering (IPO) of Supreme Facility Management saw strong investor interest during the three-day subscription period from December 11 to December 13. The IPO was subscribed more than 27 times.

The NSE SME IPO received bids for 16.91 crore shares against the 62.49 lakh shares available. The retail portion was subscribed over 42 times, while the Non-Institutional Investors’ (NIIs) category was booked 15.7 times. The Qualified Institutional Buyers (QIBs) booked their quota 8.24 times.

The IPO price band was fixed at ₹72 to ₹76 per share. For the retail investors, the minimum lot size per application was 1,600 shares, aggregating to an investment of ₹1,21,600.

About Supreme Facility Management

Supreme Facility Management plans to utilise the IPO funds to support the company’s growth and operational needs. A portion will be allocated towards funding working capital requirements. The company aims to pursue inorganic growth opportunities, for which a part of the proceeds will be used. In addition, funds will also be used for general corporate purposes.

Supreme Facility Management, established in 2005, provides a range of integrated facility management (IFM) and support services across sectors. Its IFM offerings include housekeeping, cleaning, pest control, horticulture, facade cleaning and essential maintenance services like plumbing and electrical repairs. The company also offers staffing solutions for support functions, along with services such as employee transportation, corporate catering, supply chain management and production support.

Based in Pune, Supreme Facility Management serves clients in industries such as manufacturing, healthcare, retail, automobile, engineering, fashion and technology.

For the financial year ending March 31, 2024, Supreme Facility Management reported revenue from operations of ₹355.38 crore, compared to ₹329.58 crore recorded in the previous financial year. The company’s profit after tax in FY 2023-24 stood at ₹8.33 crore, up from ₹5.89 crore in FY 2022-23.