Krystal Integrated Services IPO : Here are 10 key thing to know from the RHP before subscribing to the issue

Krystal Integrated Services IPO: Amidst volatility in the markets the public issue of Krystal Integrated Services had achieved more than 50% subscriptions on day2. The issue opened for subscription on March 14, 2024.

10 key things one should know from the RHP before subscribing

Krystal Integrated Services IPO details-

The ₹300.13 crore Krystal Integrated Services issue consists of an offer to sale of 1,750,000 Equity shares, valued at ₹125.13 crores, and a new issuance of around 2,447,552 shares valued at ₹175.00 crores.

Not less than 15% of equity shares have been set aside for NII, not more than 50% for QIB, and not less than 35% for retail investors in the Krystal integrated Services IPO.

Krystal Integrated Services IPO opened for subscription on March 14, 2024 and closes on Monday, March 18'2024.

The price band for the Krystal Integrated IPO has been set between ₹680 and ₹715 per share of a face value of ₹10. Investors may bid on a minimum of 20 shares, and they may bid more in multiples thereafter.

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Krystal Integrated Services allotment and listing details

The Krystal Integrated Services IPO allotment is likely to be finalised on Tuesday March 20, while the listing date is tentatively set for March 21, 2024, and the issue is being proposed for listing on the BSE and NSE

Krystal Integrated Services objectives of the IPO

Krystal Integrated Services intends to use the net proceeds of the new issuance for the following objectives-

a. financing capital expenditures for the purchase of new machinery

b. satisfying working capital requirements, and

c. general corporate purposes.

d. repayment, in full or in part, of certain debts that the company has obtained.

About Krystal Integrated Services

According to the company's Red Herring Prospectus (RHP), which cited the F&S Report, Krystal Integrated Services is one of India's top providers of integrated facilities management services, with a focus on the public administration (state, local, and other government offices), healthcare, education, airports, rail and metro infrastructure, and retail industries.

Krystal Integrated Services was one of the few in India as of March 31, 2023, offering a comprehensive range of integrated facility management services across numerous industries, having a huge customer base, a wide geographic reach, and the capacity to cater to almost all end-user categories.

Krystal Integrated Services Financials

Between March 31, 2022, and March 31, 2023, Krystal Integrated Services Limited's profit after tax increased by 46.3% to ₹38.44 crore while its revenue increased by 27.5% to ₹707.64 Crore.

For first six months of FY24, the revenues from operations stood at ₹451.61 crore while the net profit stood at ₹20.55 Crore.

Krystal Integrated Services Peer group companies

Krystal Integrated Services in its RHP highlighted that industry peers included Updater Services Limited and SIS Ltd. The average Price to earnings ratio for the industry peers stood at 39.00 times, while price to book value stood at 3.86 times.

Quess Corp Limited with PE of 33.40 times and price to Book of 2.9 times is another listed peer.

Krystal Integrated Services Promoters -

Promoters of the Krystal Integrated Services are Prasad Minesh Lad, Neeta Prasad Lad, Saily Prasad Lad, Shubham Prasad Lad and Krystal Family Holdings Private Limited.

Krystal Integrated Services IPO lead managers and registrars

Lead managers for Krystal Integrated Services IPO are Inga Ventures Private Limited while Link Intime India Private Limited are registrars to the Issue.

Krystal Integrated Services IPO- Key Risks

a. The Krystal Integrated Services revenue from operations is highly dependent upon a limited number of customers, with its largest, top five, top 10 and top 20 customers contributing to 34.91%, 59.19%, 72.58% and 85.86% respectively, of its revenue from operations for Fiscal 2023.

b. A significant part of Krystal Integrated Services revenue is generated from government contracts obtained through a competitive bidding process, which contributed to 73.66% of its total revenue from operations for Fiscal 2023. There can be no assurance that Krystal Integrated Services will qualify for, or that will successfully compete and win such tenders, or maintain these customer relationship

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Krystal Integrated Services IPO GMP

GMP for Krystal Integrated IPO is now +30, according to investorgain.com data. This shows that the share price of Krystal Integrated Services was selling at a premium of ₹30 on the grey market.

The Krystal Integrated Services shares were expected to list at ₹745 a share, which is 4. 20% more than the ₹715 IPO price when accounting for the upper end of the IPO pricing band and the current premium on the grey market.

A "grey market premium" denotes the willingness of investors to part with more money than the issue price.