Supreme Power Equipment IPO: A Comprehensive Analysis

supreme power equipment ipo

If you’re eyeing the latest investment opportunities, you might want to turn your attention to Supreme Power Equipment Limited. They’re stepping into the spotlight with their SME IPO, and it’s creating quite the buzz in the investment community. With a substantial issue size of Rs 4667 Cr, this fresh issue is set to open from December 21 to December 26, 2023.

Investing in IPOs can potentially be a thrilling way to grow your portfolio, and Supreme Power Equipment Limited might just be your next smart move. Each share holds a face value of Rs 10, and with a price band of Rs 61 to Rs 65, you can grab a lot of 2000 shares or more. Stay with me as we dive into the nitty-gritty of this IPO’s details, from financials to subscription rates and allotment expectations.

Supreme Power Equipment IPO Details

As the excitement for the Supreme Power Equipment Limited IPO builds, let’s delve into the nuts and bolts of the offer. The IPO will issue a total of 7,180,000 shares, aiming to aggregate up to ₹46.67 Cr. Remarkably, this entire issue is fresh, meaning the company will use the capital for growth and expansion. As an investor, it’s crucial to understand these details to gauge the potential of the investment.

With a face value of ₹10 per share and the price band ranging from ₹61 to ₹65, the investment threshold is accessible for many. What’s unique about this IPO is the share lot size. You can apply for a minimum lot of 2000 shares, creating substantial investment opportunities. For those who are unfamiliar, here’s a quick breakdown:

Lot SizePrice BandInvestment Range
2000 Shares₹61 to ₹65₹122,000 to ₹130,000

Share India Securities is the appointed market maker, and they’ve been allotted 932,000 shares to ensure liquidity post-listing.

The pre and post-issue shareholdings indicate a noteworthy change; shares held before the issue amount to 17,811,135, which will ascend to 24,991,135 post-issue. This dilution is something investors need to consider when evaluating their position.

With the IPO scheduled to be listed on the NSE SME platform, it’s tailored for smaller, emerging businesses, offering investors a chance to be a part of a growth story from an earlier stage. This segment of the market is known for its dynamism and potential high returns, albeit accompanied by equally high risks.

As the subscription window is slated from December 21 to December 26, 2023, it’s essential to mark the calendars and prepare for the application process, as the window for these exciting investment opportunities can be quite brief.

With all IPOs, due diligence is key. Keeping up with the latest live subscription rates, financials, and allotment expectations will be crucial in making an informed decision. I’ll make sure to stay on top of these updates and share insights in real time.

Supreme Power Equipment IPO Timeline

Investors eyeing the Supreme Power Equipment Limited IPO should mark their calendars for December 21, 2023, when the subscription window officially opens. This marks the beginning of a critical period for the company and investors looking to participate in this opportunity. With the IPO closing on December 26, 2023, there’s a narrow time frame for submitting bids and ensuring UPI mandate confirmation by 5 PM on the same day.

Following the closure of the IPO, the basis of allotment will be determined promptly on December 27, 2023. This is a significant date as it’ll reveal how many shares investors were able to secure. It’s crucial to keep an eye out for any announcements and check the allotment status using your PAN Number, Application Number, or DP Client ID. Here’s a succinct display of the IPO dates:

SME IPO ActivityDate
IPO OpenDecember 21, 2023
IPO CloseDecember 26, 2023
Allotment DateDecember 27, 2023
Initiation of RefundsDecember 28, 2023
Credit of Shares to DematDecember 28, 2023
Listing DateDecember 29, 2023

Within a day of the allotment, two simultaneous events take place on December 28, 2023: the initiation of refunds for the unsuccessful bidders and the crediting of shares to Demat accounts for the successful ones. This efficient process ensures that investors aren’t left waiting and could potentially engage in trading activities by the time the shares are listed.

Speaking of listing, the Supreme Power Equipment Limited shares are scheduled to make their debut on the stock market on December 29, 2023. This date is probably circled in red on many investors’ calendars as it often indicates the beginning of a new chapter in the company’s history and offers the public a chance to partake in its potential growth through the stock markets.

Keeping track of these dates and understanding the process is fundamental for a smooth investment experience in the SME IPO of Supreme Power Equipment Limited. Stay informed, stay prepared, and remember to monitor the subscription rates and financials right up to the listing day.

Supreme Power Equipment IPO Lot Size

Investing in an IPO requires understanding lot sizes and the investment required. For Supreme Power Equipment Limited’s IPO, let’s break down the details you need to prepare for your investment. The IPO lot size refers to the number of shares an investor must purchase as a minimum bid. This aspect is crucial because it impacts investment decisions and the potential returns you can expect.

For retail investors looking to get a piece of Supreme Power Equipment Limited, the lot size is set at 2000 shares. This figure isn’t arbitrary—it’s thoughtfully chosen based on the company’s valuation and the anticipated demand among retail investors. When it comes to the financial commitment, each minimum retail lot will set you back ₹130,000. Here’s a quick overview of the minimum and maximum investments for retail and high-net-worth individual (HNI) categories:

Retail (Min)12000₹130,000
Retail (Max)12000₹130,000
HNI (Min)24000₹260,000

Keep in mind that while retail investors have a max cap equal to their minimum subscription, HNIs can subscribe to multiple lots, doubling their minimum investment to ₹260,000 for two lots. If you’re considering this investment route, it’s a straightforward numerical game that merits close attention to the numbers as you make your investing decisions.

The IPO lot sizes’ structure indicates how Supreme Power Equipment Limited perceives its investor base. By setting accessible lot sizes for retail investors it reflects an inclination towards inclusivity in its offering. Meanwhile, accommodating HNIs with the option to purchase larger quantities implies the company’s confidence in attracting substantial investments from this group. The lot size plays a consequential role in determining how the shares will be distributed—and possibly how the share price could behave upon listing. If you’re strategizing your entry into the IPO, it’s imperative to consider not just the lot size but also the price band of ₹61 to ₹65 per share, ultimately dictating the total sum you’ll part with to secure your lot.

Supreme Power Equipment IPO Promoter Holding

When examining the details of an IPO, it’s crucial to evaluate the promoter holding, which indicates the promoters’ faith in their company’s future. For the Supreme Power Equipment Limited IPO, Mr. Vee Rajmohan and Mr. K V Pradeep Kumar are the promoters in question.

Upon launch, the pre-issue shareholding for the promoters was 79.37%. This stronghold indicates a firm control and a deep level of investment — personally and financially — by the promoters in the company’s operations and growth strategies. However, the promoter holding is slated to drop to 57.54% post-issue. This dilution comes as a part of the company’s strategy to raise capital while also allowing public investors to partake in the company’s journey.

Here’s a breakdown of the promoter shareholding changes following the IPO:

Share HoldingPre Issue (%)Post Issue (%)

This adjustment in shareholding is fairly common in public offerings. It reflects the company’s transition from a privately controlled firm to a public entity answerable to its shareholders. Nevertheless, a post-issue holding of over 50% remains a testament to the promoters’ continued leadership and assurance in the enterprise’s direction and governance.

Understanding these shifts is pivotal for potential investors as it influences company decision-making and, potentially, the long-term value of the investment. I’ll help decode the implications of this transition and what it means to retail and high-net-worth individuals (HNIs) pondering over the lot size and required investment for the IPO.

A balanced perspective on promoter holding is imperative for investors to align their expectations with the realistic trajectory of the company post-IPO. Supreme Power Equipment Limited, with its robust product offerings and clear objectives set for capital expenditure, working capital requirements, and general corporate purposes, is poised to leverage the capital influx strategically.

Supreme Power Equipment IPO Anchor Investors Details

When studying the Supreme Power Equipment Limited IPO, it’s essential to delve into the specifics surrounding the anchor investors. Anchor investors typically are institutional investors who commit to holding shares for a specified period, which can indicate confidence in the IPO’s prospects. In this case, the IPO raised Rs 1,216 crore from such investors, signaling a robust interest in the company.

The bid date recorded was December 20, 2023, illustrating the point at which these investors started their journey with Supreme Power Equipment Limited. They were allotted 1,870,000 shares, representing a significant portion of the IPO.

Bid DateDecember 20, 2023
Shares Offered1,870,000
Anchor Portion Size (Cr.)₹1,216

The anchor portion plays a pivotal role in an IPO. For Supreme Power Equipment, this sizeable commitment of over 12 crores indicates the level of trust these initial investors have in the company’s potential.

Anchor investors are bound by a lock-in period, which in this scenario, extends to 30 days for 50% of their shares, ending on February 8, 2024. The remaining shares have a lock-in period that lasts 90 days, concluding on May 10, 2024. Lock-in periods are standard practice to stabilize the stock post-listing, and the staggered release of these shares tends to cushion any sharp sell-offs, helping to maintain the investment’s stability.

Paying attention to these dates is paramount for those considering participation in this IPO. They reflect not only the confidence of seasoned investors but also give a timeline for when significant stock holdings may enter the market. By understanding these dynamics, I can better gauge Supreme Power Equipment shares’ future liquidity and price stability.

Armed with this knowledge, potential investors can make more informed decisions as the IPO unfolds, keeping in mind that these initial investments play a role in setting the stage for public trading that begins shortly after these anchor lock-in periods end.

Supreme Power Equipment IPO Financial Information

As I delve deeper into the financial health of Supreme Power Equipment Limited, the numbers reveal a significant trajectory of growth and stability, vital for potential investors eyeing the IPO. The company witnessed a substantial increase in total assets, from ₹6,901.04 lakhs on 31 March 2023 to ₹9,187.16 lakhs by the end of July 2023. This reflects a company that’s actively expanding and upgrading its operational capabilities.

Looking at their profitability, there’s impressive news as well. Although there’s a noticeable dip in profit after tax from ₹1,107.88 lakhs to ₹503.16 lakhs between March and July 2023, it’s important to consider market dynamics and seasonal fluctuations that typically impact the energy sector. Despite this, the company retains a strong financial foundation, with net worth rising from ₹1,805.69 lakhs to ₹2,298.26 lakhs in the same period.

Period Ended31 Jul 202331 Mar 2023
Profit After Tax503.161,107.88
Net Worth2,298.261,805.69
Reserves and Surplus1,902.461,409.89
Total Borrowing2,153.821,999.74

Another critical aspect to consider is Supreme Power Equipment’s ability to sustain and thrive in the market, evidenced by the solid Increase in reserves and surplus, from ₹1,409.89 lakhs in March to ₹1,902.46 lakhs by July. This likely indicates a robust, disciplined reinvestment strategy, signifying suitability for long-term investors.

Supreme Power Equipment IPO Reservation

As I’ve been closely following the Supreme Power Equipment Limited IPO, it’s clear that the reservation of shares across different investor categories has been strategically planned. The distribution is designed to cater to various investors – from Qualified Institutional Buyers (QIBs) to Retail Individual Investors (RIIs). Breaking down the allotment, I’ve observed that the QIB shares offered don’t exceed 50% of the net issue, maintaining a balance with other investor categories.

In contrast, retail shares represent not less than 35% of the net issue, ensuring that individual investors receive a considerable portion of the allocation pie. This move demonstrates the company’s commitment to facilitating wider participation among the general public. As for the Non-Institutional Investors (NIIs), including High Net-worth Individuals (HNIs), they’re allocated not less than 15% of the net issue. There’s a clear intention here to engage serious investors looking to invest sizeable funds.

Given my experience, this kind of reservation paints a picture of the company’s recognition of the importance of diverse investor participation. By guaranteeing substantial allotments across categories, Supreme Power Equipment Limited seems to be acknowledging the different roles that these investors play in the market’s dynamics.

Considering a robust response from retail investors, the allotment process for the Supreme Power Equipment IPO has been designed to be equitable. Should there be an oversubscription in the retail category, shares will be distributed on a proportional basis. The fairness of the process is further underscored by the provision for a lottery system to determine allotments if the number of shares falls short.

The balanced share reservation augurs well for the IPO’s success, reflecting a sound strategy aimed at safeguarding equity among different investor classes. Diverse participation could very well serve as a testament to the market’s confidence in Supreme Power Equipment Limited’s potential growth.

About Supreme Power Equipment Limited

As I delve deeper into Supreme Power Equipment Limited (SPEL) specifics, I find it essential to highlight their robust background in the power sector. Established in 1994, SPEL’s expertise spans over two decades, specializing in manufacturing power and distribution transformers that boast ratings up to 25 MVA/132KV class. The company’s commitment to delivering cost-effective and high-standard transformers is evident in their minimal lead times, setting them apart in this competitive industry.

Quality Commitment My research indicates that SPEL’s adherence to quality isn’t just a claim but a certified reality. Their higher standards are authenticated by ISO 9001:2015, ISO 14001:2015, and OSHAS 45001:2018 certifications, which are hallmarks of excellence in quality, environmental, and occupational health and safety management systems, respectively. This trinity of certifications underpins their operations, ensuring that every transformer produced meets rigorous standards.

A Diverse Portfolio In terms of product offerings, SPEL’s portfolio is quite diverse. They manufacture an array of transformers that cater to various sectors, covering electric utility, wind, solar, hydel power, mining, and other industrial applications. Their product range is not limited to power transformers; it spans generator and windmill transformers. Such versatility in product offerings suggests that SPEL has a transformer solution for virtually any application within its operational scope.

Recognition Through Testing SPEL’s dedication to maintaining high-quality standards extends to validation through stringent testing at central power research institutes. Their transformers undergo rigorous assessment, leaving no stone unturned in ensuring that each unit delivered can withstand the demands of its application. The meticulous approach towards testing reflects the company’s philosophy of ‘quality without compromise,’ making them a reliable choice for critical power infrastructure needs.

As SPEL embarks on its SME IPO launch, understanding its foundational strengths provides valuable context to its market positioning and future growth potential.

Supreme Power Equipment IPO Review

When evaluating the Supreme Power Equipment Limited IPO, it’s crucial to scrutinize its recent financial performance. In the financial year 2023, the company reported impressive figures: revenues of ₹99.91 crores and a profit after tax (PAT) of ₹11.08 crores. With expenses totaling around ₹84.59 crores during the same period, the firm presents a strong case for profitability and financial stability.

The IPO’s structure is notably straightforward, constituted exclusively as a fresh issue with no offer for sale (OFS) component. This means that funds raised will directly contribute to the company’s growth, unlike in an OFS where proceeds go to selling shareholders. The issue size stands at a substantial ₹46.67 crores, which implies a potential for significant capital infusion into Supreme Power Equipment Limited’s operations.

For investors, the pricing is an attractive feature. With the IPO price band set at ₹61 to ₹65 per share and a face value of ₹10 per equity share, the entry point is accessible, especially given the company’s strong financials. Prospective shareholders must note that the retail quota is firmly set at not less than 35% of the net issue, ensuring that individual investors have a substantial share of the pie.

The application process is tailored to be as investor-friendly as possible. The subscription period, starting on December 21, 2023, and wrapping up on December 26, 2023, offers a comfortable window for investors to participate. The minimum application quantity is set at 2000 shares, corresponding to a minimum application amount of ₹130,000 — a figure that might be seen as steep for casual investors but quite common in the SME segment of the market.

Investment in Supreme Power Equipment Limited at the IPO stage involves careful consideration of these financial and structural details, ensuring that investors are fully informed before making a commitment. With the company gearing up for a listing on the NSE SME, this IPO could mark a significant step in Supreme Power Equipment Limited’s journey towards greater market presence and financial growth.

Supreme Power Equipment IPO Strengths and Weaknesses

With Supreme Power Equipment Limited stepping into the public market, I’ve taken a deep dive into its financial robustness and the accessibility of its IPO. Their recent financial success reflects a company on the rise, and the transparent IPO structure presents a unique opportunity for investors. The lack of an offer-for-sale component coupled with competitive pricing makes this IPO stand out. However, it’s crucial to weigh their strengths against the potential risks inherent in any investment. I’m confident that those who do their homework will find the Supreme Power Equipment Limited IPO worth considering. Remember, investing in an IPO is as much about understanding the company as it is about timing and market conditions. Keep a keen eye on the details; you might just find a promising addition to your investment portfolio.

You may also like Innova Captab IPO.

How to Apply for Supreme Power Equipment IPO in Zerodha

To apply for the Supreme Power Equipment IPO in Zerodha, you can follow these steps:

  • Log in to Zerodha’s back office software “Console” on their website or application.
  • Go to the Portfolio and click on the “IPO” tab.
  • Select the Supreme Power Equipment IPO from the list of open IPOs.
  • Enter your UPI ID and place the bid for the number of lots you want to apply for.
  • Submit the bid.

It’s important to note that the UPI payment mode is to be used to apply online through Zerodha. The IPO is open for subscription from December 21, 2023, to December 26, 2023. The minimum market lot is 2000 shares, and the application amount is ₹130,000 for retail investors

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