Krystal Integrated Services receives go-ahead from SEBI to launch its IPO

Krystal Integrated Services has received the final observation from market regulator Securities and Exchange Board of India (“SEBI”) for their proposed Initial Public Offering (IPO).

The IPO comprises fresh issuance of equity shares worth ₹175 crore and an offer-for-sale (OFS) of 17.5 lakh shares by promoter Krystal Family Holdings Pvt Ltd. Krystal Family Holdings owns 99.99 per cent stake in the company while 

Krystal Integrated Services had filed preliminary papers with SEBI in October'2023 to mobilise funds through an initial public offering (IPO).

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Proceeds from the fresh issue of shares will be utilised for debt payment, supporting working capital requirements, fund capital expenditure for purchase of new machinery and for general corporate purposes.

The company plans to use up to ₹100 crore for funding its working capital requirements  in the Financial Year 2024 and Financial Year 2025, respectively, for meeting our future business requirements as per the Draft Red Herring Prospectus.

As of August 31, 2023, Krystal's outstanding total secured and unsecured borrowings (long term and short term)  stood at ₹163.2 Crore, on a consolidated basis. 

Its may utilize up to ₹10 Crore for debt payments while another ₹10 crore  may be utilised for Funding capital expenditure for purchase of new machinery including (i) scrubbers such as floor, industrial, walk behind scrubbers; (ii) vacuum cleaner; (iii) high pressure jet; (iv) telescopic pole; and (v) mop wringer trolley.

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Krystal is an integrated facilities management services company with a focus on healthcare, education, public administration, airports, railways and metro infrastructure, and retail sectors. 

Also, it provides staffing solutions and payroll management to customers, as well as private security and manned guarding services and catering services.

Inga Ventures Pvt Ltd is the sole book running lead manager to the issue. Link Intime India Private Limited is the Registrar to the issue.

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