Supreme Power Equipment IPO entails to raise Rs 46.67 crores. The issue is entirely a fresh issue of 71.8 lakh shares.Supreme Power Equipment Limited is in the business of manufacturing different types of transformers.
IPO opens
Dec 21, 2023
IPO Closes
Dec 26, 2023
IPO Size (Rs.)
₹46.67 Cr
IPO Size (shares)
7,180,000 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹61 to ₹65
Minimum Lot
2000 Shares
Listing At
NSE SME
QIB Quota
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Narnolia Financial Services Ltd
Registrar
Purva Sharegistry
Market maker
Share India Securities
About Supreme Power Equipment Limited:
The Company was incorporated in 1994.
Subsequently company was taken over by a new management.
The Company is currently engaged in the areas of manufacturing, up-gradation, and refurbishment of transformers ranging from Power Transformer, Generator Transformer, Windmill Transformer, Distribution Transformer, Isolation Transformer, Solar Transformer, Energy Efficient Transformer, Converter and Rectifier Transformer.
The promoters of Company are Mr. Vee Rajmohan and Mr. K V Pradeep Kumar
Financials: Supreme Power Equipment Limited
Particulars ( In Rs. Lakhs )
4M-FY24
2023
2022(standalone)
2021(standalone)
Revenue from operation
3,926.27
9,975.94
4,660.47
3,535.17
Profit after Tax
503.16
1,107.88
51.81
26.56
EPS Basic and Diluted
2.77
6.08
0.29
0.15
Share Capital
395.8
395.8
395.8
395.8
Net Worth
2,298.26
1,805.69
723.4
671.61
NAV per Equity Share (in Rs.)
58.07
45.62
18.28
16.97
Total borrowings
– Long Term
426.48
455.91
376.62
257.35
– Short Term
1,727.34
1,543.83
592.97
1,792.16
Post issue Share Capital
2499
FV
10.0
IPO price
65.0
EPS Fy23
4.4
PE Fy23
14.7
EPS Fy24 (annualized)
6.0
PE Fy24 (annualized)
10.8
Market cap in Lacs
16,243.5
Market cap / Sales
1.63
Anchor
Supreme Power Equipment IPO: Salient Points
Company intends to utilize the Net Proceeds for the following objects:
S. No.
Particulars
Amount (In Rs. Lakh)
1
Capital expenditure
2,413.30
2
Working capital requirements & General Corporate purpose
1,105.00
Major products of company:
Key Performance Indicators
Particulars
For the period endedJuly 31, 2023
Financial Year endedMarch 31st, 2023
EBITDA
785.74
1,815.65
Adjusted revenues
3,927.61
9,990.85
Adjusted PAT
503.16
1,107.88
Gross margin
23.57%
22.53%
EBITDA margin
20.01%
18.20%
Working capital
1,761.08
1,914.48
PAT Margin
12.81%
11.09%
Net worth
2,298.26
1,805.69
Company’s order book is around 65 crore.
Company posted an EDIDTA margin of 18% last year on a turnover of about Rs. 100 crore
Company is going for expansion at a cost of 70 crore. The project will be implemented in 3 phases.
At present mainly supplies to Tamilnadu. It has ventured into Karnataka, Kerala, Andhra.
SPEL is manufacturing a wide range of well designed and cost-effective high standard transformers of ratings up to 25 MVA/132KV class.
It has supplied more than 1500Nos. ranging from 315KVA/11KV to 2250KVA/33KV to various Wind Mill projects in india of multinational companies namely Vestas in Denmark, Gamesa in Spain, Winwind in Finland and Indian companies like Suzlon and Pioneer Group.
Expects minimum 10 % growth rate in revenues going forward.
Peers
Particulars
Supreme Power
TD Power
Indo Tech
TRIL
Voltamp
Revenue ’23
7,553.03
82,148.42
37,091
1,35,986
1,38,510.41
EBITDA
1,316.56
11,812.16
3058
10,576
23,087.44
EBITDA (%)
17.43%
14.38%
8.24%
7.78%
16.67%
ROCE (%)
73.93%
20.29%
14.96%
18.68%
19.98%
Current Ratio
1.54
2.42
1.97
1.4
4.9
Operating Cash Flow
443.51
8,200.01
-394
2,674
16,797.25
PAT
1,082.29
8,845.83
2,578
3,723
20,049.01
ROE
59.94%
14.89%
15.08%
9.73%
18.11%
PE
14.7(10.8)
36.7
18.8
261
25.4
Mcap/Sales
1.63
4.4
1.52
2.71
4.17
Among the public shareholders Rajasthan Global Securities Private Ltd holds a 13.31% stake in the company.
I intend to apply in Supreme Power Equipment IPO. To me it looks reasonably priced compared to Peers and sector is doing well.
GMP as reported on social media has been around Rs. 45.
Narnolia Financial Services Ltd is the Lead Manager and has a reasonable record. Past issues handled by them include WomanCart Limited, Inspire Films, Cellecor Gadgets, Yudiz Solutions Limited, Drone Destination.
SME IPO are more risky and volatile than mainboard IPOs.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
