Supreme Power Equipment
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Dec 2023 – 26 Dec 2023
- Listing date
- 29 Dec 2023
- Face value
- ₹10 per share
- Issue price
- ₹65 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹46.67 Cr
- Market cap at offer price
- ₹162 Cr
- Promoter holding
- 79.37% → 56.56% pre-issue → post-issue
- ISIN
- INE0QHG01026
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Narnolia Financial Services Ltd.
- Registered office
- 55, SIDCO Industrial Estates, Thirumazhisai Thirumushi, Poonamallee, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 18,70,000 | — | — |
| Market maker | 9,32,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹65
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,30,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,60,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,10,000 |
| B-HNI (min) | 8 | 16,000 | ₹10,40,000 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.08 | — |
| P/E (×) | 10.69 | — |
| Market cap | — | ₹162 Cr |
Key performance indicators
- Return on net worth
- 59.88%
- ROCE
- 83.01%
- Debt / equity
- 0.45
- PAT margin
- 13.89%
- NAV per share
- ₹45.62
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Supreme Power Equipment
Incorporated on June 21, 2005 as Supreme Power Equipment Private Limited and converted into a public limited company (renamed Supreme Power Equipment Limited) effective September 18, 2023, SPEL is engaged in the manufacturing, up-gradation and refurbishment of transformers ranging from Power, Generator, Windmill, Distribution, Isolation, Solar, Energy Efficient, Converter and Rectifier Transformers. It operates one owned manufacturing facility of 17,876 sq. ft. at SIDCO Industrial Estate, Thirumazhisai, Tiruvallur (Chennai), Tamil Nadu with an installed plant & machinery capacity of 2,500 MVA, is ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified, holds a BIS licence, and its transformers are type tested by CPRI up to 25 MVA/110 kV class. The company earns revenue predominantly by winning government tenders (approximately 60–80% of revenue, mainly from Tamil Nadu utilities TANGEDCO and TANTRANSCO) and from direct orders of private entities; it sourced ~99.8–100% of revenue from India (with small exports to Singapore, Nigeria and UAE in FY23). Standalone revenue from operations was Rs. 7,553.03 Lakhs in FY2023 (vs Rs. 4,660.47 Lakhs in FY2022) with PAT of Rs. 1,082.29 Lakhs; consolidated FY2023 revenue was Rs. 9,975.94 Lakhs with PAT of Rs. 1,107.88 Lakhs. Through this IPO of 71,80,000 fresh equity shares (no offer for sale), it proposes to fund Rs. 2,413.30 Lakhs of capital expenditure — principally setting up a second factory on owned land at Kannur village, Thiruvallur with machinery to manufacture transformers up to 160 MVA (versus current capability up to 25 MVA) to enhance eligibility for larger government tenders — along with Rs. 1,105.00 Lakhs of working capital, general corporate purposes and issue expenses.
Company Analysis
from RHPSupreme Power Equipment Limited is a Tamil Nadu-based manufacturer, up-grader and refurbisher of power, distribution, generator, windmill, solar, furnace and other specialty transformers, operating in India's electrical equipment and power sector.
Incorporated on June 21, 2005 as Supreme Power Equipment Private Limited and converted into a public limited company (renamed Supreme Power Equipment Limited) effective September 18, 2023, SPEL is engaged in the manufacturing, up-gradation and refurbishment of transformers ranging from Power, Generator, Windmill, Distribution, Isolation, Solar, Energy Efficient, Converter and Rectifier Transformers. It operates one owned manufacturing facility of 17,876 sq. ft. at SIDCO Industrial Estate, Thirumazhisai, Tiruvallur (Chennai), Tamil Nadu with an installed plant & machinery capacity of 2,500 MVA, is ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certified, holds a BIS licence, and its transformers are type tested by CPRI up to 25 MVA/110 kV class. The company earns revenue predominantly by winning government tenders (approximately 60–80% of revenue, mainly from Tamil Nadu utilities TANGEDCO and TANTRANSCO) and from direct orders of private entities; it sourced ~99.8–100% of revenue from India (with small exports to Singapore, Nigeria and UAE in FY23). Standalone revenue from operations was Rs. 7,553.03 Lakhs in FY2023 (vs Rs. 4,660.47 Lakhs in FY2022) with PAT of Rs. 1,082.29 Lakhs; consolidated FY2023 revenue was Rs. 9,975.94 Lakhs with PAT of Rs. 1,107.88 Lakhs. Through this IPO of 71,80,000 fresh equity shares (no offer for sale), it proposes to fund Rs. 2,413.30 Lakhs of capital expenditure — principally setting up a second factory on owned land at Kannur village, Thiruvallur with machinery to manufacture transformers up to 160 MVA (versus current capability up to 25 MVA) to enhance eligibility for larger government tenders — along with Rs. 1,105.00 Lakhs of working capital, general corporate purposes and issue expenses.
Objects of the Issue
- Capital expenditure – setting up a second factory on owned land at Kannur Village, Thiruvallur Taluk (5 Acres 95 Cents) and acquiring plant & machinery (building construction, impulse voltage test system, winding machines/formers, VPD & drying systems, cranes, DG set, etc.) to manufacture transformers with capacities up to 160 MVA and enhance eligibility for government tenders Rs. 2,413.30 Lakhs p.77
- Working capital requirement Rs. 1,105.00 Lakhs p.80
- General corporate purposes (not exceeding 25% of Gross Proceeds) p.85
- Issue expenses (issue management fees, underwriting fees, registrar fees, legal advisor fees, printing/distribution, advertising, depository charges and listing fees; Rs. 67.05 Lakhs already incurred as of December 15, 2023) p.86
Issue Structure
- Total Issue
- Up to 71,80,000 Equity Shares of Rs. 10/- each aggregating to Rs. [●] Lakhs (constituting 28.73% of post-issue paid-up capital; Net Issue of 62,48,000 shares after Market Maker Reservation of 9,32,000 shares constituting 25.00%)
- Fresh Issue
- 71,80,000 Equity Shares of face value Rs. 10/- each fully paid-up
- Offer for Sale
- NIL
- Price Band
- Floor Price of Rs. 61/- per Equity Share to Cap Price of Rs. 65/- per Equity Share (Floor/Cap being 6.1x and 6.5x of face value)
- Lot Size
- 2000 Equity Shares and in multiples of 2000 Equity Shares thereafter
- Face Value
- Rs. 10/- each
Business Model
Revenue comes from designing, manufacturing, testing and supplying transformers (plus refurbishment/upgradation services), secured mainly through government tenders — approximately 60–80% of revenue per the risk factors — supplemented by direct purchase orders from private entities; raw materials (CRGO steel, copper, press board, oil, etc.) are procured order-by-order without long-term supplier contracts.
Business Segments
SWOT Analysis
- • Established government-tender franchise with PSU/utility clients(p.125)
- • Experienced promoter-led management team(p.125)
- • Wide product portfolio across manufacturing and refurbishment segments(p.126)
- • Well-equipped owned manufacturing facility with in-house testing(p.126)
- • Stage-wise quality assurance processes(p.126)
- • Cordial long-standing customer and supplier relationships driving repeat orders(p.126)
- • Customized, efficiency-focused transformer engineering(p.126)
- • High customer concentration - top 10 customers contributed 75.38%-87.92% of standalone revenue(p.29)
- • Dependence on government tenders for approximately 60-80% of revenue(p.28)
- • Geographic concentration - entire revenue sourced from Tamil Nadu(p.29)
- • Low capacity utilization (7.70% in FY22, 9.81% in FY21, 30.33% in FY23)(p.30)
- • Promoter named as accused in a CBI economic-offences criminal case(p.25)
- • Significant and rising working capital requirement(p.29)
- • Negative cash flows from investing and financing activities(p.28)
- • No long-term contracts with suppliers(p.27)
- • Capitalizing on growing power-infrastructure demand(p.128)
- • Expanding geographic reach within India and internationally(p.127)
- • New factory enabling transformers up to 160 MVA and broader government-tender eligibility(p.77)
- • Global transformer market growing at 7.2% CAGR (USD 54 bn in 2022 to >$109 bn by 2032)(p.107)
- • Indian electrical equipment market expected to reach US$72 billion by 2025(p.110)
- • Indian transformers market slated for strong growth on power/infrastructure investment(p.113)
- • Growing renewable-energy base supports windmill/solar transformer demand(p.108)
- • Intense competition with no entry barriers(p.33)
- • Technological disruption in transformer manufacturing(p.31)
- • Outbreaks of contagious diseases such as COVID-19(p.39)
- • Adverse changes in government policy(p.39)
- • Slowdown in Indian economic growth(p.39)
- • High inflation increasing costs(p.39)
- • Currency fluctuation risk under exchange-control regulations(p.36)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Vee Rajmohan | Promoter / Chairman & Managing Director | 43.44% | 31.50% |
| K V Pradeep Kumar | Promoter / Whole Time Director | 28.78% | 20.87% |
| Ms. R Sasikala | Promoter Group | 5.55% | 4.02% |
| Ms. Savita Pradeep | Promoter Group | 1.59% | 1.15% |
Leadership
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.