Krystal Integrated Services Limited is launching its IPO. The IPO opens for subscription on March 14, 2024, and will close on 18th March.
What does Krystal Integrated Services do?
Incorporated in December 2000, the company specializes in facilities management across diverse sectors like healthcare, education, public administration, airports, railways, and retail. Their services include housekeeping, sanitation, landscaping, mechanical, electrical, and plumbing services, waste management, pest control, among others.
The company serves numerous hospitals, schools, airports, railway stations, and metro stations, indicating a broad presence across critical infrastructure sectors. Their ability to onboard new customers and maintain longstanding relationships highlights their reliability.
Geographically, the company operates across 16 states and two union territories in India, with 21 branch offices as of September 30, 2023. This widespread presence facilitates seamless service provision and ensures a greater focus on customer needs.
What is the issue size of Krystal Integrated Services Limited IPO?
The public offering consists of a book-built issue, with a fresh issue of shares amounting to ₹175.00 crores and an offer for sale of 0.18 crore shares. The total valuation of the offering has not been announced yet.
Financials of Krystal Integrated Services Limited IPO
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EPS | EBITDA (₹ crores) |
|---|---|---|---|---|---|
| March 31, 2021 | 338.47 | 474.30 | 16.82 | 14.45 | 30.10 |
| March 31, 2022 | 404.38 | 554.85 | 26.27 | 22.69 | 45.45 |
| March 31, 2023 | 343.46 | 710.96 | 38.44 | 33.33 | 54.50 |
| September 30, 2023 | 449.82 | 455.67 | 20.58 | 17.84 | 30.99 |
Risk factors to consider:
Customer Concentration Risk: Revenue heavily relies on a limited number of customers, with the top five, top 10, and top 20 customers contributing 34.91%, 59.19%, 72.58%, and 85.86% respectively, to the company’s revenue in Fiscal 2023. The loss of these key customers could significantly impact the company’s financial performance.
Dependency on Government Contracts: A substantial portion of revenue is derived from government contracts obtained through competitive bidding. The inability to qualify for or successfully compete for tenders may impact revenue and customer relationships.
Manpower Dependency: The business is manpower intensive, and the inability to attract and retain skilled manpower may hinder growth and impact financial conditions. High attrition rates could affect customer satisfaction and financial performance.
Vendor Dependency and Price Fluctuations: Dependency on vendors for equipment and products exposes the business to risks if vendors fail to meet obligations or if there are price fluctuations. Volatility in pricing may adversely affect business operations and financial performance.
Working Capital Requirements: Significant working capital is required for business operations. The inability to obtain future financing on favorable terms or furnish bank guarantees may impact working capital management and business operations.
Schedule/Timeline of Krystal Integrated Services Limited IPO
| Issue Period | March 14, 2024, to March 18th, 2024 |
|---|---|
| Price band | To be announced |
| Minimum Bid quantity | To be announced |
| Deadline for accepting UPI mandate | 5:00 PM on the issue Closing Date. |
| Finalization of Allotment | March 19, 2024 - Tuesday |
| Initiation of Refunds | March 20, 2024 - Wednesday |
| Credit of Shares | March 20, 2024 - Wednesday |
| Date of Listing | March 21, 2024 - Thursday |
| Mandate end date | April 02, 2024 - Tuesday |
| Anchor Investors Lock-In End Date | |
| (50% of the Investment) | April 18, 2024 - Thursday |
| Anchor Investors Lock-In End Date | |
| (Remaining of the Investment) | June 17, 2024 - Monday |
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply for the Krystal Integrated Services Limited IPO?
You can apply for Krystal Integrated Services Limited IPO using any supported UPI app by following two steps:
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Enter your bid on Kite
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Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status of the Krystal Integrated Services Limited IPO?
You can check the allotment status for the Krystal Integrated Services Limited IPO on the website of the Registrar and Transfer Agent. Alternatively, you can also check the allotment status on the NSE website.