Supreme Facility Management Limited is set to launch its initial public offering (IPO) from December 11 to December 13, 2024, aiming to raise approximately ₹50 crores. The IPO will consist of 6,579,200 equity shares priced between ₹72 and ₹76 each, with a face value of ₹10 per share. As a leading provider of integrated facility management services in India, the company offers a comprehensive range of solutions, including staffing, cleaning, and maintenance services tailored for various industries.
₹25
₹76
₹75
Expert Opinions
Market sentiment for the Supreme Facility Management IPO is optimistic, reflecting the increasing demand for professional facility management services in India. Company strengths include a solid financial performance, with revenues of ₹356.95 crores and a profit of ₹7.42 crores for FY24, indicating effective operational management. However, risks and challenges involve intense competition in the facility management sector and potential economic fluctuations that could impact client spending.
The valuation analysis places the IPO price between ₹72 and ₹76 per share, which appears reasonable given the company’s earnings per share of ₹4.06 and return on net worth of 21.29%. From a long-term investment perspective, Supreme Facility Management is well-positioned to grow as businesses increasingly outsource these services to enhance operational efficiency, making it a relevant consideration for investors looking for exposure in the expanding service sector.
Investor Considerations
Investors considering the Supreme Facility Management IPO should analyze several crucial factors. Company performance and fundamentals are solid, with FY24 revenues of ₹355.39 crores and a net profit of ₹8.33 crores, indicating a consistent growth trajectory in the facility management sector. The sector outlook is favorable, driven by increasing demand for integrated facility management services as businesses seek to outsource non-core functions.
The IPO valuation is set between ₹72 and ₹76 per share, which appears reasonable given the company’s return on net worth of 21.29% and a debt-to-equity ratio of 2.49. Growth prospects are promising, with plans for expansion into new markets and enhanced service offerings. However, risk factors include intense competition from established players and potential economic fluctuations that could impact client budgets. A long-term investment horizon is advisable, as Supreme Facility Management is well-positioned to capitalize on the growing trend of outsourcing facility management services in India.
| Date | GMP | Trend |
|---|---|---|
| 17 Dec 2024 12.12 | ₹25 | --- |
| 16 Dec 2024 17.54 | ₹25 | --- |
| 15 Dec 2024 13.25 | ₹25 | --- |
| 14 Dec 2024 16.35 | ₹25 | --- |
| 13 Dec 2024 11.23 | ₹25 | --- |
| 12 Dec 2024 12.34 | ₹25 | --- |
| 11 Dec 2024 11.00 | ₹25 | Up |
| 10 Dec 2024 11.15 | ₹00 | --- |
| 09 Dec 2024 16.53 | ₹00 | --- |
| 06 Dec 2024 17.51 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Supreme Facility Management’s listing performance. While the GMP of ₹25 predicted a significant premium of 32.89% over the issue price, the stock actually listed at a slight discount of 1.32%. With a substantial prediction error of 25.74%, the GMP not only failed to predict the magnitude but also misread the direction of the listing movement, demonstrating its unreliability as a price predictor in this case.
Supreme Facility Management IPO Current GMP is ₹25.
Supreme Facility Management IPO Expected Returns is 32.90%.
Supreme Facility Management IPO estimated listing price is ₹101.