Supreme Facility Management Ltd IPO

The IPO opens on 11 Dec 2024 & closes on 13 Dec 2024.

Supreme Facility Management Limited was incorporated on May 19, 2005 as Supreme Facility Management Private Limited', a Private Limited Company, pursuant to a Certificate of Incorporation dated May 19, 2005 issued by the Registrar of Companies, Pune. The Company converted to a Public Limited Company, and the name of Company was changed to 'Supreme Facility Management Limited', and a fresh Certificate of Incorporation dated March 1, 2024 was issued by the Registrar of Companies. The Company started their journey in year 2005 and were providing IFM services & ET to a few clients with a handful of employees. While primary focus and strength are deeply rooted in IFM services, the Company have since diversified the service portfolio to undertake Support Services. Since commencement of operations, their strength has grown in numbers as well as widening spectrum of services. The Company is an integrated business services provider focused in offering Integrated Facility Management (IFM) services and other Support Services to industries across multiple sectors. The IFM service portfolio broadly includes (i) soft services such as housekeeping and cleaning services, disinfecting and sanitizing services, pest control, horticulture, and facade cleaning; (ii) hard service such as maintenance, repair, overhaul and performance management of electrical, plumbing and maintenance services (iii) Staffing Service where it supply the workforce for various support service; The Support Services portfolio broadly includes (i) Employee Transportation (ET) services whereby it provide transportation services ; (ii) Corporate Food Solution Services (CFSS) whereby it offer catering services; (iii) Supply Chain Management Services (SCM) whereby it provide Third-party logistics (3PL) service and (iv) Production Support Services (PSS) whereby it supplying the workforce to the manufacturing companies for production, material handling, and maintenance. The Company is proposing the Initial Public Offer of 65,80,000 Fresh Issue Equity Shares.

Supreme Facility Management Ltd IPO will close on 13 Dec 2024.

<ul><li>Comprehensive range of service offerings providing one-stop solution to customers; Focused business model which is well-positioned to capture favourable industry dynamics.</li><li>Longstanding relationship with customers across diverse sectors, with recurring business.</li><li>Wide geographic presence with large and efficient workforce, coupled with strong recruitment and training capabilities.</li><li>Historical track-record of strong financial performance, with a scalable, agile and efficient business model.</li><li>Strong knowledge and expertise of our promoters.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Lalasaheb Vitthalrao Shinde</td> <td>9120474</td> <td>49.98</td> <td>9120474</td> <td>36.73</td> </tr> <tr> <td>2</td> <td>Rajendra Lalasaheb Shinde</td> <td>8629476</td> <td>47.28</td> <td>8629476</td> <td>34.76</td> </tr> <tr> <td>3</td> <td>Manisha Rajendra Shinde</td> <td>1825</td> <td>0.01</td> <td>1825</td> <td>0.01</td> </tr> <tr> <td>4</td> <td>Kashmira Rajendra Shinde</td> <td>1825</td> <td>0.01</td> <td>1825</td> <td>0.01</td> </tr> <tr> <td>5</td> <td>Sumant Rajendra Shinde</td> <td>1825</td> <td>0.01</td> <td>1825</td> <td>0.01</td> </tr> </tbody> </table>

<ul><li>The company's business could be adversely affected if its customers fails to renew their contracts with the company or its fail to acquire new customers.</li><li>Operational risks are inherent in its business as it includes rendering services in contrasting environments. A failures to manage such risks including any errors, defects or disruption in its service or inability to meet expected or agreed service standards, could have an adverse impact on its business, cash flows, results of operations and financial condition.</li><li>Its business revenue from operations is concentrated in a few business segments.</li><li>A significant portion of its revenues are derived from a few geographical regions and any adverse developments affecting such regions could have an adverse effect on its business, cash flows, results of operation and financial condition.</li><li>The company has a large workforce deployed across workplaces and customer premises. Consequently, its may be exposed to service-related claims and losses or employee disruptions, as well as employee related regulatory risks, that could have an adverse effect on its reputation, business, cash flows, results of operations and financial condition.</li><li>The company's businesses are manpower intensive and its inability to attract and retain skilled manpower could have an adverse impact on its growth, business, and Financing condition. Further, in the event the company is not able to manage its attrition, its may not be able to meet the expectations of the company customers, which may have an adverse impact on its Financing condition.</li><li>Its profitability and growth will be significantly dependant on the company ability to maintain a lower debt equity ratio.</li><li>Substantial portion of its revenues has been dependent upon its few clients. The loss of any one or more of the company major clients would have a material adverse effect on its business operations and profitability.</li><li>Its may be unable to perform background verification procedures on the company personnel as well as on its billable employees prior to placing them with the company customers.</li><li>Its may be unable to fully realize the anticipated benefits of the company past acquisitions and any future acquisitions or within its expected timeframe. If the company is unable to identify expansion opportunities or experience delays or other problems in implementing its expansion efforts, the company's growth, business, cash flows, results of operations and financial condition may be adversely affected.</li><li>The company had negative cash and cash equivalents generated during some of the previous years based on the restated consolidated financial statements of group as whole, which could in future may experience similar negative cash flows.</li><li>The company does not own some of the business premises where its Branch offices are located.</li><li>The company propose to utilize the Net Proceeds to undertake inorganic growth for which the target may not be identified. If Net Proceeds to be utilized towards funding strategic acquisitions and investment are insufficient for the cost of its proposed acquisitions and other strategic initiative, the company may have to seek alternative forms of funding.</li><li>The Company, its Subsidiaries, its Group Companies, the company Promoters and Directors may be parties to certain legal proceedings. Any adverse decision in such proceedings may have a material adverse effect on its business, results of operations and financial condition.</li><li>Its insurance coverage may be insufficient or may not adequately protect it against all or any hazards, which may adversely affect its business, results of operations and financial condition.</li><li>Majority of its Directors does not have any prior experience of directorship of any listed entity.</li><li>Its Promoter cum Director was disqualified from directorship.</li><li>Significant disruptions of information technology systems or breaches of data security could adversely affect its business.</li><li>The company requires certain approvals and licenses in the ordinary course of business and are required to comply with certain rules and regulations to operate its business, any failures to obtain, retain and renew such approvals and licenses or comply with such rules and regulations may adversely affect its operations.</li><li>The company is dependent upon the business experience and skill of its promoters and management personnel. Loss of the company senior management or its inability to attract or retain such qualified personnel, could adversely affect its business, results of operations and financial condition.</li><li>Sufficient working capital is essential to ensure the seamless daily operation of its business. If, for any reason, there is a disruption or the company encounter difficulties in obtaining the necessary working capital in a timely manner and under favourable terms, it could potentially have a detrimental impact on its operational efficiency, profitability, and prospects for growth.</li><li>The industries in which the company operates are intensely competitive and have low barriers to entry.</li><li>The company has certain contingent liabilities, and its Financing condition and profitability may be adversely affected if any of these contingent liabilities materialize.</li><li>The company is subject to risks associated with its contracts, including the company ability to correctly assess pricing terms, employee costs and other financial obligations, the increased complexity of its contracts and the potential early termination or change of scope of contracts by clients.</li><li>Its may not be able to successfully manage the growth of the company operations and execute its growth strategies which may have an adverse effect on its business, financial condition, results of operations and future prospects.</li><li>There are certain instances of delays in payment of statutory dues. Any delay in payment of statutory dues or non-payment of statutory dues in dispute may attract financial penalties from the respective government authorities, which may have an adverse impact on its financial condition and cash flows.</li><li>The company has in past entered into related party transactions and its may continue to do so in the future.</li><li>THe company may be unable to sufficiently obtain, maintain, protect, or enforce its intellectual property and other proprietary rights.</li><li>The company has not obtained credit ratings and may not be able to access capital to finance its operations and future growth of the company's business, which could have a material adverse effect on its business, results of operations, financial condition, cash flows, and future prospects.</li><li>Its management will have broad discretion in how the company apply the Net Proceeds, including interim use of the Net Proceeds, and there is no assurance that the objects of the Issue will be achieved within the time frame expected or at all, or that the deployment of the Net Proceeds in the manner intended by it will result in any increase in the value of your investment.</li><li>Any variation in the utilisation of the Net Proceeds would be subject to certain compliance requirements, including prior shareholders' approval.</li><li>Its may be affected by competition law, the adverse application or interpretation of which could adversely affect its business.</li><li>The company ability to pay dividends in the future will depends upon its future earnings, financial condition, cash flows, working capital requirements, capital expenditure and restrictive covenants in its financing arrangements.</li><li>The average cost of acquisition of Equity Shares by its Promoter could be lower than the Issue Price.</li><li>Its financing agreements contain covenants that limit the company flexibility in operating its business. Its inability to meet its obligations, including financial and other covenants under the company debt financing arrangements could adversely affect its business, cash flows, results of operations and financial condition.</li><li>Its Promoters will continue jointly to retain majority control over the Company even after the Issue which will allow them to determine the outcome of matters submitted to shareholders for approval.</li><li>One of the subsidiary have incurred losses in one of the last three year.</li><li>Changes in existing emission and vehicle age norms may lead to part or all of its fleet of vehicles becoming un-roadworthy.</li><li>If the company fail to maintain an effective system of internal controls, its may not be able to successfully manage, or accurately report, the company's Financing risks.</li><li>SCM business has contributing 7.79% of Revenue which have one major customer. The loss of its major customer would have a material adverse effect on the company's business, cash flows, results of operations and Financing condition.</li><li>The Company may incur penalties or liabilities for delayed compliance with certain provisions of the RBI under FEMA Act.</li><li>The company is dependent on its vendors for the supply of equipment and products that its use in providing the company services and solutions.</li><li>Its Promoters have extended personal guarantees or co-borrowers in connection with certain of its debt facilities. There can be no assurance that such personal guarantees will continue to be provided by its Promoters in the future.</li><li>The company has significant employee benefit expenses, such as workers' compensation, staff welfare expenses and contribution to provident and other funds. An increase in employee costs in India may prevent it from maintaining its competitive advantage and may reduce the company profitability.</li><li>Its Promoters, Directors and Key Managerial Personnel of the Company may have interests in it other than reimbursement of expenses incurred or normal remuneration or benefits.</li><li>Subsequent to the listing of the Equity Shares, its may be subject to surveillance measures, such as the Additional Surveillance Measures and the Graded Surveillance Measures by the Stock Exchanges in order to enhance the integrity of the market and safeguard the interest of investors.</li><li>The Equity Shares have never been publicly traded, and, after the Issue, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the price of the Equity Shares may be volatile, and you may be unable to resell the Equity Shares at or above the Issue Price, or at all.</li><li>The Issue price of its Equity Shares may not be indicative of the market price of the company Equity Shares after the Issue and the market price of its Equity Shares may decline below the Issue Price and you may not be able to sell your Equity Shares at or above the Issue Price.</li><li>Any future issuance of Equity Shares, or convertible securities or other equity linked securities by the Company may dilute your shareholding and any sale of Equity Shares by its Promoters or members of the company Promoter Group may adversely affect the trading price of the Equity Shares.</li><li>Fluctuation in the exchange rate between the Indian Rupee and foreign currencies may have an adverse effect on the value of its Equity Shares, independent of the company operating results.</li><li>Rights of shareholders under Indian laws may be more limited than under the laws of other jurisdictions.</li><li>QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li></ul>

The Issue type of Supreme Facility Management Ltd is Book Building - SME.

The minimum application for shares of Supreme Facility Management Ltd is 1600.

The total shares issue of Supreme Facility Management Ltd is 6579200.

Initial public offer of 65,79,200 equity shares of face value of Rs. 10/- each ("Equity Shares") of the company at an issue price of Rs. 76 per equity share (including a share premium of Rs. 66 per equity share) for cash, aggregating up to Rs. 50.00 crores ("Public Issue") out of which 3,29,600 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 76 per equity share for cash, aggregating Rs. 2.51 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 62,49,600 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 76 per equity share for cash, aggregating Rs. 47.49 crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 26.50% and 25.17% respectively of the post-issue paid-up equity share capital of the company.