The initial public offer (IPO) of Krystal Integrated Services, which opened for subscription on Thursday, was booked 48% so far on the second day of bidding. The issue consists of a fresh equity sale worth Rs 175 crore and an offer for sale (OFS) of Rs 125 crore.

The category reserved for retail investors was subscribed 49%, while that of QIBs and NIIs were booked 34% and 65%, respectively.

The funds raised through the IPO will be utilized for repayment of debt, working capital requirements, capital expenditure as well as for general corporate purposes.

Krystal Integrated Services IPO review

Analysts are neutral on the IPO despite the company’s comprehensive service offerings and focused business model, which is well-positioned to capitalize on favourable industry trends.

The company boasts a diverse customer base, a wide geographic presence, and a track record of strong financial performance. However, there are some key challenges which include reliance on a limited number of clients, particularly government contracts secured through bidding processes.

“The facility management industry is highly competitive, and operational risks are inherent to the business. Valuation-wise, the IPO appears fully priced at a P/E of 40x. Considering these factors and the current market sentiment, we maintain a neutral rating on the IPO,” said Swastika Investmart.

Krystal Integrated Services IPO price band

The company has fixed a price band of Rs 680-715 per share for its maiden public offer. At the upper end, it plans to raise Rs 300 crore.About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors and the rest 35% for retail investors.

Also Read: Krystal Integrated Services IPO opens for subscription. Should you bid?

Krystal Integrated Services IPO GMP

According to market analysts, the current GMP of Krystal Integrated Services is Rs 70 in the unlisted market.

Other details

Krystal Integrated Services is one of India’s leading integrated facilities management services companies with a focus on healthcare, education, public administration (state government entities, municipal bodies and other government offices), airports, railways and metro infrastructure, and retail sectors (Source: F&S Report).

It provides a comprehensive range of integrated facility management service offerings across multiple sectors and is consequently among select companies in India that have a wide geographic presence and customer base, catering to almost all end-user segments.

For FY23, the company’s revenue from operations rose 28% year-on-year to Rs 708 crore. Net profit for the same period jumped 46% to Rs 38.4 crore.

Inga Ventures is the sole book-running lead manager for the IPO, while Link Intime India is the registrar.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)