Supreme Facility Management Limited IPO

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They are an integrated business services provider specializing in Integrated Facility Management (IFM) and Support Services, catering to diverse industries. Their focus is on delivering annuity-based B2B services, enabling long-term customer relationships, cost efficiency, and cross-selling opportunities.

Service Portfolio:

i. Integrated Facility Management (IFM) Services:
a. Soft Services: Housekeeping, cleaning, sanitizing, pest control, horticulture, and facade cleaning.
b. Hard Services: Maintenance, repair, overhaul, and performance management of electrical, plumbing, and other systems.
c. Staffing Services: Supplying workforce for various support functions.

ii. Support Services:
a. Employee Transportation (ET): Providing transportation solutions for client employees.
b. Corporate Food Solution Services (CFSS): Catering services for corporate clients.
c. Supply Chain Management (SCM): Third-party logistics (3PL) solutions for clients.
d. Production Support Services (PSS): Workforce supply for manufacturing, material handling, and maintenance.

Operational Highlights:

i. B2B Services:
a. Annuity-based model ensures recurring revenue streams.
b. Services integrate seamlessly into clients’ core business operations, enhancing efficiency and value creation.

ii. Cross-Selling Potential: Opportunities to up-sell and cross-sell additional services, increasing client wallet share.

iii. Asset-Light Business:
a. Except for employee transportation, minimal fixed asset deployment is required.
b. Corporate Food Solutions involves minimal raw materials, ensuring independence from commodity price fluctuations.

Growth and Vision:

They have experienced strong growth over the years by being a trusted partner to their clients, offering essential services that form a critical component of their operations. Their commitment to efficiency and adaptability positions them for sustained expansion and value creation in the B2B services sector.

Objects of the Supreme Facility Management Limited IPO:

The Company proposes to utilise the Net Proceeds towards funding the following object: i. Funding their working capital requirements ii. Pursuing inorganic initiatives iii. General corporate purposes.
DRHP of Supreme Facility Management Limited IPO
RHP of Supreme Facility Management Limited IPO

Supreme Facility Management Limited IPO Details:

Open Date: Dec 11 2024
Close Date: Dec 13 2024
Total Shares: 6,579,200
Face Value: ₹ 10 Per Equity Share
Issue Size: 50.00 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 72 - 76 Per Equity Share
Listing At: NSE Emerge
Listing Date: Dec 18 2024

Promoters And Management:

Rajendra Lalsaheb Shinde, a Promoter and Managing Director of the Company, holds a Bachelor's in Commerce from the University of Poona (1994). With over 16 years of experience in Integrated Facility Management, Catering, Transportation, and allied industries, he has also been associated with ventures like Supreme Motion Pictures Pvt. Ltd., Trimurty Utility Services Pvt. Ltd., and Supreme Infracity and Realty LLP. He oversees the company’s daily operations. Lalasaheb Vitthalrao Shinde, a Promoter and Whole-time Director of the Company, holds a Doctor of Philosophy (Honoris Causa) from the Open International University (2017). With over 19 years of experience in Warehousing and Integrated Facility Management industries, he is also associated with ventures like Supreme Motion Pictures Pvt. Ltd., Trimurty Utility Services Pvt. Ltd., and Supreme Holidays (India) Pvt. Ltd. He oversees the company’s daily operations. Amol Sharad Shingate, Executive Director and CEO of the Company, holds a Bachelor's in Commerce from Bharti Vidyapeeth Deemed University (2004) and certifications in Organizational Leadership (Harvard Square, 2022) and Strategy Management (IIM Indore, 2023). With over 18 years of experience, he joined the company in 2013 as Finance Head and became Executive Director in September 2021. Previously, he served as Executive-Administration at Syntel Ltd. (2006-2007) and Associate Manager-Facilities Management at Infosys BPO Ltd. (2007-2012).

Financials of Supreme Facility Management Limited IPO:

In Cr.
Particulars June 30 2024 FY 24 FY23  FY22
Revenue 99.07 355.38 329.58 236.01
EBITDA 8.78 28.71 24.28 17.46
EBITDA Margins 8.87% 8.08% 7.37% 7.40
PAT 2.40 7.41 5.54 3.88
PAT Margins 2.43% 2.09% 1.68% 1.64%
CFOA(OCF) (2.19) 24.42 5.07 4.21
Cash Conversion Ratio (OCF/EBITDA) Negative 85.05% 20.88% 24.11%
D/E Ratio 3.04 2.49 2.89 2.33

Comparison With Peers:

As per RHP no listed peers of the company but Company IFM segment can be compared with listed peers like:
  1. Krystal Integrated Services
  2. Updater Services

Recommendation on Supreme Facility Management Limited IPO:

Review and Recommendation of Supreme Facility Management IPO by team IZ is 4/10.
 

Lead Manager of Supreme Facility Management Limited IPO:

  1. Khandwala Securities Limited

Registrar of Supreme Facility Management Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Supreme Facility Management Limited A-120, Jai Ganesh Vision, Akurdi, Pune 411035 Phone: +91 9637811000 Email: compliance@supremefacility.com Website: https://supremefacility.com/

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