Supreme Facility Management
Book Building issueSMENSE₹50 Cr issue
-1.32%
Listing gain over issue price
Issue size
₹50 Cr
1 lot at cut-off
₹1,21,600
Lot size
1,600shares
Open
11 Dec 2024
Close
13 Dec 2024
Allotment
16 Dec 2024
Listing
18 Dec 2024
Listing performance
Issue price
₹76
Listed at
₹75
Listing-day close
₹71.25
Latest price
₹18.45
Close on 23 Oct 2026
Listing gain
-1.32%
Return since issue
-75.72%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 11 Dec 2024 – 13 Dec 2024
- Listing date
- 18 Dec 2024
- Face value
- ₹10 per share
- Issue price
- ₹76 per share
- Lot size
- 1,600 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹50 Cr
- Market cap at offer price
- ₹189 Cr
- Promoter holding
- 97.29% → 71.51% pre-issue → post-issue
- ISIN
- INE0U6N01014
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Khandwala Securities Ltd.
- Registered office
- A-120, Jai Ganesh Vision, Akurdi, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 3,29,600 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹76
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,21,600 |
| S-HNI (min) | 2 | 3,200 | ₹2,43,200 |
| S-HNI (max) | 8 | 12,800 | ₹9,72,800 |
| B-HNI (min) | 9 | 14,400 | ₹10,94,400 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
₹76 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.06 | 3.88 |
| P/E (×) | 18.72 | 19.59 |
| Price to book (×) | 3.98 | — |
| Market cap | — | ₹189 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 21.29%
- ROCE
- 23.10%
- Debt / equity
- 2.49
- PAT margin
- 2.09%
- NAV per share
- ₹19.08
- Price to book
- 3.98
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Supreme Facility Management
Supreme Facility Management Limited, incorporated on May 19, 2005 and converted to a public limited company on March 1, 2024, is an integrated business services provider. The company offers IFM services (soft services like housekeeping, cleaning, disinfecting, pest control, and facade cleaning; hard services including maintenance and repair of electrical, plumbing systems; and staffing services) and Support Services (Employee Transportation, Corporate Food Solution Services, Supply Chain Management/3PL, and Production Support Services) to customers across multiple sectors. The company operates through subsidiaries including Trimurty Utility Services Private Limited, Everdew Engineering Private Limited, and Ialpha Mobility Solutions Private Limited. As of September 30, 2024, the company employs 10,935 personnel, with 10,798 billable and 137 unbillable employees.
Company Analysis
from RHPSupreme Facility Management Limited provides integrated facility management services and support services including housekeeping, cleaning, staffing, employee transportation, corporate food solutions, and supply chain management to industries across multiple sectors.
Supreme Facility Management Limited, incorporated on May 19, 2005 and converted to a public limited company on March 1, 2024, is an integrated business services provider. The company offers IFM services (soft services like housekeeping, cleaning, disinfecting, pest control, and facade cleaning; hard services including maintenance and repair of electrical, plumbing systems; and staffing services) and Support Services (Employee Transportation, Corporate Food Solution Services, Supply Chain Management/3PL, and Production Support Services) to customers across multiple sectors. The company operates through subsidiaries including Trimurty Utility Services Private Limited, Everdew Engineering Private Limited, and Ialpha Mobility Solutions Private Limited. As of September 30, 2024, the company employs 10,935 personnel, with 10,798 billable and 137 unbillable employees.
Integrated Facility ManagementBusiness ServicesStaffing and Manpower ServicesTransportation ServicesSupply Chain ManagementFood Services
Objects of the Issue
- Funding working capital requirements ₹3,000.00 lakhs p.23
- Pursuing inorganic initiatives ₹750.00 lakhs p.23
- General corporate purposes p.23
- Funding our working capital requirements ₹3,000.00 lakhs p.86
- Pursuing inorganic initiatives ₹750.00 lakhs p.89
- General corporate purposes [●] p.91
- General corporate purposes p.287
Issue Structure
- Total Issue
- Up to ₹[●] lakhs
- Fresh Issue
- 65,79,200 Equity Shares aggregating up to ₹[●] lakhs
- Offer for Sale
- Nil
- Price Band
- ₹72 to ₹76 per Equity Share
- Lot Size
- 1,600 Equity Shares and in multiples of 1,600 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
Revenue generation through provision of integrated facility management services and support services on a contract basis, typically through short-term work orders and contracts with one-year periods. The company earns revenue from soft FM services (housekeeping, cleaning, sanitization), hard FM services (maintenance and repair), staffing services, employee transportation services, corporate food solutions, supply chain management/3PL services, and production support services.
Business Segments
Soft services such as housekeeping and cleaning services, disinfecting and sanitizing services, pest control, horticulture, and facade cleaning; hard service such as maintenance, repair, overhaul and performance management of electrical, plumbing and maintenance services; and staffing service where the company supplies workforce for various support services.
Provision of transportation services for the employees of the company's clients.
Provision of Third-party logistics (3PL) service for clients.
Offering of catering services for employees of corporate clients.
Supplying workforce to manufacturing companies for production, material handling, and maintenance.
Provision of soft services including housekeeping, disinfection, sanitation, landscaping, and hard services including HVAC maintenance, MEP maintenance, fire safety systems, and other engineering services
Provides corporate catering and food services to corporate clients
Provision of production support services and staffing services to manufacturing and industrial clients
Provides soft services (housekeeping and cleaning services, disinfecting and sanitizing services, pest control, horticulture, facade cleaning), hard services (maintenance, repair, overhaul and performance management of electrical, plumbing, HVAC systems, power equipment, pumps, sewage treatment plants, fire safety systems, waste management systems, technical cleaning), and staffing services.
Provides transportation solutions for corporate clients to facilitate the commuting needs of their employees. Owns 430 buses with seating capacity of 13-55 seats and maintains 98 hired vehicles as of September 30, 2024. Services include shuttle services (regularly scheduled shuttles), private car services (on-demand rides), and bus services (larger-scale transportation solutions).
Provides production outsourcing activity where specific tasks or processes are outsourced to the company while the client maintains control. The company ensures productivity and quality of the product based on client drawings. All infrastructure including material, consumables, utilities are provided by the client. Produces heat exchangers, pressure condensers, power turbines, oil field pumps, agricultural and industrial pumps, and boiler panels.
Provides catering services for employees of corporate clients. Services include cafeteria and dining facilities, on-site and off-site catering for meetings and events, and accommodation of dietary needs to support employee satisfaction and well-being.
Provides third-party warehousing management, inplant logistics, and value-added services to various industry and ecommerce clients. Services include inventory management, order fulfillment, warehouse layout optimization, technology integration, labor management, transportation management, quality control, material flow management, packaging, labeling, kitting, assembly, quality inspection, and product customization.
Soft services including housekeeping, sanitation, landscaping and gardening; hard services including mechanical, electrical and plumbing services and façade cleaning
Transportation services for employees
Production support and warehouse management services
Provides mechanized housekeeping, integrated facility management, gardening, industrial canteen operations, manpower supply, and employee transportation
SWOT Analysis
Strengths
- • Integrated service portfolio across multiple facility management and support service segments(p.22)
- • Growing IFM market with strong CAGR and outsourcing trend in India(p.22)
- • Established operational presence with significant scale of workforce(p.33)
- • Geographic diversification with dominant presence in Maharashtra and expansion to other states(p.33)
- • Comprehensive service portfolio across facility management, employee transportation, and food services(p.95)
- • Longstanding customer relationships with recurring revenue across diverse sectors(p.95)
- • Wide geographic presence with large, efficient workforce and strong training capabilities(p.95)
- • Track record of strong financial performance with scalable business model(p.95)
- • Promoter expertise and industry knowledge(p.95)
- • Diverse portfolio of integrated services across multiple sectors(p.124)
- • Strong customer retention and recurring annuity-based revenue model(p.125)
- • Wide geographic presence with 168 client locations and in-house recruitment capabilities(p.125)
- • Asset-light business model with limited capital intensity(p.118)
- • Highly experienced promoter team with 64 years combined industry experience(p.127)
- • Strong revenue and profitability growth trajectory(p.128)
- • Technology integration across operations including SAP and emerging automation platforms(p.127)
- • Standardized recruitment, training and deployment processes enabling scalability(p.125)
- • Diverse customer base across multiple industries reducing economic cycle vulnerability(p.242)
- • Long-standing customer relationships with five of top 10 customers retained for over 5 years(p.242)
- • Large workforce of 10,935 employees enabling scale and service delivery(p.242)
- • Comprehensive range of customized service offerings across soft and hard services(p.242)
- • Revenue growth trajectory from ₹23,601.13 Lakhs (FY 2022) to ₹35,538.67 Lakhs (FY 2024)(p.242)
Weaknesses
- • High debt-to-equity ratio above 2:1 limiting financial flexibility(p.35)
- • Heavy concentration of revenues in top few customers creating customer risk(p.35)
- • Negative operating cash flow in recent quarter indicating working capital stress(p.37)
- • High employee attrition ratio of 30% affecting operational continuity and costs(p.35)
- • Recurring delays in payment of statutory dues (GST, ESIC, PF) indicating compliance issues(p.44)
- • One subsidiary incurred losses indicating integration or operational challenges(p.47)
- • High leverage with debt-equity ratio of 3.04, indicating significant financial risk(p.97)
- • Dependence on a concentrated customer base with majority corporate clients(p.89)
- • Significant long-term borrowings creating debt servicing obligations(p.60)
- • Low net profit margin of 2.43% indicating limited profitability relative to revenue(p.97)
- • High customer concentration with top 10 customers accounting for 59.57% of revenue(p.134)
- • High debt-to-equity ratio of 3.04x indicating significant leverage(p.128)
- • High employee attrition ratio of 30% affecting operational continuity(p.125)
- • Geographic concentration with 81.81% of revenue from Maharashtra(p.134)
- • IAlpha Mobility Solutions showing losses with negative PAT of Rs 0.29 lakhs in Q1 FY25(p.134)
- • Modestly low net profit margins of 2.43% indicating thin profitability(p.128)
- • Negative operating cash flow for Q1 FY 2025 of ₹(219.87) Lakhs despite positive EBITDA(p.249)
- • High financial leverage with total borrowings of ₹11,319.05 Lakhs as of June 30, 2024(p.213)
- • Significant increase in trade receivables from ₹8,062.15 Lakhs (FY 2023) to ₹10,812.21 Lakhs (Q1 FY 2025)(p.184)
- • Manpower-intensive business requiring continuous recruitment and training(p.242)
- • Multiple outstanding litigations involving labour disputes and motor accident claims(p.243)
- • Dependence on personal guarantees from promoters for secured borrowings(p.216)
- • Tax demands against promoters(p.258)
- • Concentration of trade payables among other creditors(p.258)
- • Contract labour licensing expiries in near term(p.261)
Opportunities
- • Expansion of outsourced FM market share from 39% to projected 50% by 2029(p.22)
- • Inorganic growth through strategic acquisitions in niche segments and new geographies(p.36)
- • Expansion beyond Maharashtra into underserved geographies with limited presence(p.33)
- • Utilization of IPO proceeds for working capital and strategic acquisitions(p.23)
- • Indian IFM market expected to grow from ₹90,000 crore (2023) to ₹1,90,000 crore (2029) at 36.12% CAGR(p.110)
- • Increasing shift from single-service to integrated facility management service models(p.110)
- • Government's 100+ Smart Cities development plan driving infrastructure creation and facility management demand(p.110)
- • Growing corporate office presence in Asia-Pacific expected to increase employee transportation services demand(p.112)
- • Indian warehousing and logistics market projected to grow from 307.4 million sq ft (H1 2022) to 500 million sq ft by 2025(p.114)
- • Indian food service market expected to reach USD 79.65 billion by 2028, growing at 11.19% CAGR(p.116)
- • Expansion into higher-margin service segments and emerging verticals(p.131)
- • Growth through strategic acquisitions of complementary high-margin businesses(p.131)
- • Deepening wallet share from existing customers through cross-selling(p.130)
- • Leverage technology and automation to improve operating margins(p.132)
- • Geographic expansion into underserved regions with untapped market potential(p.131)
- • Growth in organized facilities management consolidation benefiting large players(p.131)
- • Expansion of service offerings to new geographies and business verticals(p.243)
- • Deepening relationships with existing customers through customized solutions(p.243)
- • Market consolidation opportunity in fragmented integrated facilities management industry(p.243)
- • Recent acquisition of 45% stake in Trimurty Utility Services Private Limited(p.242)
- • Expansion into additional states via GST registration(p.259)
- • ISO certification demonstrating service quality credentials(p.264)
- • FSSAI licenses supporting canteen and food service expansion(p.261)
- • Subsidiary operational capabilities in facility services(p.264)
Threats
- • Intense competition from organized and unorganized competitors with pricing pressure(p.42)
- • Manpower intensive business vulnerable to labor law changes and employee cost inflation(p.34)
- • Dependence on short-term work orders with no long-term contract assurance(p.31)
- • Regulatory risks from stringent compliance requirements and license renewals(p.41)
- • Vehicle emission norm compliance risks affecting Employee Transportation Services fleet(p.48)
- • Economic cyclicality and global economic downturn affecting corporate facility spending(p.52)
- • Uncertainty from pending government approvals and regulatory clearances(p.41)
- • Highly competitive IFM market with presence of large domestic and international companies(p.111)
- • High attrition rate and difficulty retaining skilled workforce, especially in soft services(p.111)
- • Lack of availability of technical and non-technical labor affecting industry operations(p.111)
- • Increasing inflation and labor costs forcing customers to shift from long-term to medium-term contracts(p.111)
- • Global economic slowdown reducing growth forecasts and investment in India and regional economies(p.108)
- • Price sensitivity of customers creating preference for non-compliant FM companies(p.111)
- • Intense competition from both established and fragmented small-scale operators(p.138)
- • Dependence on labor-intensive workforce vulnerable to wage inflation and availability(p.127)
- • Regulatory complexity across multiple Indian states and labor legislation(p.139)
- • Exposure to Contract Labour Act compliance and associated regulatory risks(p.139)
- • Customer concentration risk with potential contract non-renewal or termination(p.130)
- • Highly competitive market with 400-500 operators and some competitors having greater financial resources(p.243)
- • Risk of customers utilizing internal workforce or independent contractors instead of external services(p.243)
- • Complex labour regulatory environment with frequent changes in minimum wage and employee benefits(p.243)
- • Vulnerability to slowdown in customer demand affecting revenue and operations(p.243)
- • Pricing pressure and competitive pressure on talent acquisition and retention(p.243)
- • Dependence on third-party vendors for service delivery(p.244)
- • Regulatory change risk via contract labour licensing(p.261)
- • Dependence on renewal of pollution control consent(p.261)
- • Factory license renewal requirement(p.261)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Lalasaheb Vitthalrao Shinde | Promoter | 49.98% | 36.73% |
| Rajendra Lalasaheb Shinde | Promoter | 47.28% | 34.76% |
| Manisha Rajendra Shinde | Promoter | 0.01% | 0.01% |
| Lalasaheb Vitthalrao Shinde | Promoter | 49.98% | 36.73% |
| Rajendra Lalasaheb Shinde | Promoter | 47.28% | 34.76% |
| Manisha Rajendra Shinde | Promoter | 0.01% | 0.01% |
| Kashmira Rajendra Shinde | Promoter Group | 0.01% | 0.01% |
| Sumant Rajendra Shinde | Promoter Group | 0.01% | 0.01% |
| Lalasaheb Vitthalrao Shinde | Promoter | 49.98% | — |
| Rajendra Lalasaheb Shinde | Promoter | 47.28% | — |
| Manisha Rajendra Shinde | Promoter Group | 0.01% | — |
| Rajendra Shinde | Promoter/Managing Director | — | — |
| Lalasaheb Shinde | Promoter/Chairman | — | — |
| Lalasaheb Vitthalrao Shinde | Promoter | — | — |
| Rajendra Lalasaheb Shinde | Promoter | — | — |
Leadership
Rajendra Lalasaheb Shinde · Managing Director
Amol Sharad Shingate · Chief Executive Officer
Nikhilesh Ratanlal Loya · Chief Financial Officer
Varsha Sahbani · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Supreme Facility Management IPO FAQs
What is the lot size of Supreme Facility Management IPO?
The minimum lot size of Supreme Facility Management IPO is 1,600 shares. One lot costs ₹1,21,600 at the cut-off price.
When does Supreme Facility Management IPO open and close?
Supreme Facility Management IPO opened for subscription on 11 Dec 2024 and closed on 13 Dec 2024.
What is the listing date of Supreme Facility Management IPO?
Supreme Facility Management IPO listed on 18 Dec 2024.