Krystal Integrated Services IPO: Key things to know before subscribing for issue

The IPO of Krystal Integrated Services Ltd, a leading facilities management company, will open for subscription on March 14. The price band of the IPO has been fixed at ₹680-₹715 per share, with a lot size of 20 shares. If you are keen on investing in this public issue, here are some important details you should know about the company.

What does Krystal Integrated Services do?

Krystal Integrated Services offers facility management services to healthcare companies, educational institutes, public administration offices (state government entities, municipal bodies and other government offices), airports, railways, metro infrastructure and retail sectors.

Its range of offerings includes soft services such as housekeeping, sanitation, landscaping and gardening. The company also provides mechanical, electrical and plumbing services, solid, liquid and biomedical waste management, pest control and facade cleaning.

Krystal Integrated Services is involved in staffing solutions, payroll management for its customers, as well as private security and catering services.

In the listed space, Krystal Integrated Services competes with companies like Quess Corp, SIS and Updater Services.

Company Financials

Krystal Integrated Services posted revenue of ₹710.97 crore in fiscal year 2022-23 compared with ₹554.86 crore in 2021-22.

For the six months of FY2023-24, the company saw revenue of ₹455.67 crore. The company’s net profit for FY23 stood at ₹38.44 crore compared with ₹26.28 crore in FY22.

IPO details

The Krystal Integrated Services IPO will open for subscription on March 14 and close on March 18. The stock is expected to be listed on BSE and NSE on March 21. The price band has been set in the range of ₹680-₹715 per share.

The Krystal Integrated Services IPO consists of a fresh issuance of shares worth ₹175 crore and an offer-for-sale (OFS) of up to 17.5 lakh equity shares of face value of ₹10 each, which should aggregate to around ₹125 crore considering the upper price band of the IPO. This takes the total IPO size to around ₹300 crore. Promoter company Krystal Family Holdings Pvt Ltd will be the selling shareholder in the OFS.

Krystal Integrated Services has reserved 50% of the issue for qualified institutional buyers (QIBs), 35% for retail investors and 15% for non-institutional investors (NIIs).

Inga Ventures Pvt Ltd is the book-running lead manager of the issue, while Link Intime India Pvt. Ltd has been appointed as the registrar for the IPO.

Why Krystal Integrated Services bringing this IPO?

Krystal Integrated Services plans to use net proceeds from the fresh issue of shares towards repayment/prepayment, in full or part, of certain borrowings availed of by the company. A part of the money raised would also go towards funding working capital requirements and capital expenditure for the purchase of new machinery, with a portion to be kept aside for general corporate purposes.