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Krystal Integrated Services Ltd IPO: Review, Valuation, Date & GMP

  


Krystal Integrated Services Limited IPO  - Complete Overview

Established in 2000, Krystal Integrated Services Limited stands as one of India’s premier integrated facilities management services providers, with a particular emphasis on sectors such as healthcare, education, public administration, airports, railways and metro infrastructure, and retail. 

The company offers staffing solutions, payroll management, private security, manned guarding services, and catering services to its clientele.

By September 30, 2023, Krystal Integrated had extended its services to 135 hospitals and medical colleges, 228 schools and colleges, one airport, four railway stations, and 30 metro stations, in addition to providing catering services on certain trains and routes. 

Over the fiscal years 2021, 2022, and 2023, as well as the six months ending on September 30, 2023, the company catered to 262, 277, 326, and 309 customers, respectively. 

During the same period, the number of customer locations served by Krystal Integrated witnessed growth from 1,962 as of March 31, 2021, to 2,240 as of March 31, 2022, and further to 2,427 as of March 31, 2023, before settling at 2,160 as of September 30, 2023.

Across fiscal years 2021, 2022, and 2023, as well as the six months ending on September 30, 2023, the company welcomed 76, 70, 89, and 57 new customers, respectively. 

As of September 30, 2023, Krystal Integrated operated in 16 states and two union territories in India, boasting a network of 21 branch offices nationwide. 

The company reported revenue of ₹4,516.08 million as of September 30, 2023.

Krystal Integrated Services Limited IPO Overview:

Krystal Integrated Services Limited IPO date is slated to be open for subscription from March 14, 2024, to March 18, 2024. This mainboard IPO follows a Book Built Issue IPO.

Krystal Integrated Services Limited IPO price is set in the range of ₹680 to ₹715 per share.

The total issue size of this IPO is ₹300.13 Cr. The company has reserved 35% for retail investors, 15% for non-institutional investors and 50% for institutional investors.

Company Financial

Compared to the past fiscal year, Krystal Integrated Services Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has increased, while total borrowings have also risen.

(Amount in crores)

Period

30 Sep 2023

31 Mar 2023

31 Mar 2022

Total Assets 

449.83

343.47

404.39

Total Revenue

455.67

710.97

554.86

PAT

20.56

38.41

26.15

Net worth

183.68

163.41

163.86

Reserve & Surplus 

170.09

155.27

156.04

Total Borrowings

103.36

47.99

72.55


Revenue generated by providing services to these sectors:

(Amount in million)

Sector

Six Months Ended September 30, 2023

FY 23

FY 22

Healthcare

1,384.03

2.664.59

2,079.43

Education

913.25

1,454.30

1,030.96

Airport, railways and metro infrastructure

279.59

489.21

347.84


Revenue generated from different states

(Amount in million)

State

Six Months Ended September 30, 2023

FY 23

FY 22

Maharashtra 

1,574.60

3,062.95

2,316.20

Tamil nadu

1,385.72

2,661.06

2,045.41

Other States and UT

1,555.75

1,352.35

1,165.15

Total

4,516.08

7,076.36

5,526.76

 

 

 

The Objective of the Issue

The net proceeds from the Fresh Issue will be allocated for the following objectives:

1. Repayment/prepayment, either in full or in part, of specific borrowings obtained by the company.

2. Meeting the working capital requirements of the company.

3. Funding capital expenditure for the acquisition of new machinery.

4. Catering to general corporate purposes.

Peers of Krystal Integrated Services Limited IPO

Name of the Company

Face Value (₹)

EPS (₹)

P/E Ratio

Krystal Integrated Services Limited

10

33.33

-

Quess Corp Limited

10

15.16

33.40

SIS Limited

5

23.64

18.97

Updater Services Limited

10

6.77

64.65

 

 

 

Evaluation

The IPO price is set in the range of ₹680 to ₹715 per share.

Evaluation of P/E Ratio

  • Considering the FY23 EPS of Rs 33.33 from the last year, the resulting P/E ratio is 21.45x.

  • Taking into account the weighted EPS of Rs 26.64 for the last three years, the P/E ratio amounts to 26.83x.

Comparative Analysis with Listed Peers 

  • The industry's average P/E is 39.00x.

As a result, the IPO price range, with a P/E ratio ranging from 21.45x to 26.83x, seems fully priced to the industry average of 39.00x.

 

IPO's Strengths 

  • Offering a comprehensive range of services to provide customers with a one-stop solution.

  • Operating with a focused business model poised to leverage favourable industry dynamics.

  • Maintaining longstanding relationships with customers across various sectors, resulting in recurring business.

  • Establishing a wide geographic presence with a sizable and efficient workforce, supported by robust recruitment and training capabilities.

  • Demonstrating a historical track record of robust financial performance, facilitated by a scalable, agile, and efficient business model.

  • Maintaining a track record of delivering high-quality and efficient services.

IPO weaknesses 

  • The company's revenue from operations is heavily reliant on a limited number of customers.

  • A significant portion of the company's revenue comes from government contracts secured through competitive bidding; failure to secure these contracts could adversely affect business operations.

  • Revenue from the company's operations is concentrated in a few segments.

  • Previous periods have seen the company experience negative cash flows from investing and financing activities.

  • Some customer contracts may be terminated without cause and with or without penalties.

  • The company may need to obtain or renew certain approvals or licenses as part of its regular operations.

  • The industries in which the company operates are highly competitive, with low barriers to entry in certain cases.

  • There are ongoing legal proceedings involving the company, its promoters, subsidiaries, and directors.

  • The company is exposed to risks associated with its contracts, including accurately assessing pricing terms, employee costs, and other financial obligations.

IPO GMP Today 

The Latest GMP of Krystal Integrated Services Limited IPO is Rs.45.

 

Krystal Integrated Services Limited IPO timetable (Tentative)

Krystal Integrated Services Limited IPO is scheduled from March 14 to March 18, 2024, with allotment on March 19, refund initiation on March 20, and listing on March 21, 2024

Events 

Date

IPO Opening Date

March 14, 2024

IPO Closing Date

March 18, 2024

IPO Allotment Date 

March 19, 2024

Refund initiation 

March 20, 2024

IPO Listing Date

March 21, 2024


Krystal Integrated Services Limited IPO Details 

Krystal Integrated Services Limited IPO, with a face value of Rs.10 per share, opens on March 14 and closes on March 18, 2024, offering 4,197,552 shares at Rs.680 to Rs.715 per share, with a lot size of 20 shares, aiming to raise Rs.300.13 Cr, and will be listed on NSE and BSE.

IPO opening & closing date 

March 14, 2024 to March 18, 2024

Face value 

₹10 per share

Issue Price

₹680 to ₹715 per share

Lot Size

20 Shares

Price of 1 lot

₹14,300

Issue Size

4,197,552 shares (aggregating up to ₹300.13 Cr)

Offer for sale 

1,750,000 shares of ₹10 (aggregating up to ₹125.13 Cr)

Fresh issue 

2,447,552 shares (aggregating up to ₹175.00 Cr)

Listing at

BSE, NSE

Issue Type 

Book Built Issue IPO

Registrar 

Link Intime India Pvt. Ltd. 

 

 


Krystal Integrated Services Limited IPO Lot Details 

For Krystal Integrated Services Limited IPO, the retail investor can invest in minimum 1 lot (20 Shares) at (Rs.14,300) and maximum 13 lot (260 Shares) at (Rs.185,900) while for HNI investors, the minimum investment is 14 lots (280 shares) at Rs.200,200.

Minimum Lot Investment (Retail) 

1 lot

Maximum Lot Investment (Retail) 

13 lot

Minimum Lot Investment (HNI) 

14 lot

Maximum Lot Investment (HNI) 

69 lot


Krystal Integrated Services Limited IPO Reservation

Institutional share Portion

50%

Non-institutional share Portion

15%

Retail share Portion

35%

Promoters and Management of Krystal Integrated Services Limited

  • Prasad Minesh Lad

  • Neeta Prasad Lad

  • Saily Prasad Lad

  • Shubham Prasad Lad (Individual Promoters)

  • Krystal Family Holdings Private Limited

Pre-issue Promoter shareholding

99.99%

Post-issue Promoter shareholding

 

 

Krystal Integrated Services Limited IPO Lead Managers

  • Inga Ventures Pvt Ltd

Dividend Policy

The company has not issued any dividends in the past financial years, and the potential for future dividend payments depends on the financial performance of the company.

 

 

Conclusion

Krystal Integrated Services Limited is a prominent player in India's integrated facilities management services sector, renowned for its long-standing relationships with customers and a proven track record of robust financial performance. While the company has faced challenges such as negative cash flow in the past, investors are urged to consider applying for the upcoming IPO only after conducting a thorough analysis for optimal outcomes.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

 

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Frequently Asked Questions

+

The IPO is scheduled to open for subscription on March 14, 2024.

 

+

The issue price for Krystal Integrated Services Limited IPO is not yet available.

 

+

The total issue size of the IPO is not yet available, with 35% reserved for retail investors.

 

+

The IPO is set to close on March 18, 2024.

 

+

The IPO's net proceeds will be allocated towards Repayment/prepayment, in full or part, of certain borrowings availed of by the Company, Funding working capital requirements of the Company, Funding capital expenditure for the purchase of new machinery, and General corporate purposes.

 



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