Krystal Integrated Services shares list at 11% premium over IPO price

Shares of Krystal Integrated Services made a decent debut on the stock exchanges on Thursday, tracking strong cues from the broader market. The share price of the Mumbai-based facilities management services company debuted at ₹795 apiece on the BSE, a premium of 11.1% over the issue price of ₹715. On the NSE, the stock opened 9.8% higher against the initial public offering (IPO) price at ₹785 per share.

Post listing, Krystal Integrated Services shares retreated from listing price and dropped to ₹740 level on the BSE and ₹762.35 on the NSE. The counter touched a high of ₹793.8 on the NSE.  

At 11:00 AM, the stock was quoting at ₹747.85, up 4.6% against the issue price, while the market capitalisation stood at ₹1,046 crore.

The listing of Krystal Integrated Services was better than expected as the stock was commanding a grey market premium (GMP) of ₹59 over the IPO price in the unofficial market, indicating listing price to be around ₹774.

The ₹300 crore IPO of Krystal Integrated Services, which opened between March 14-18, was subscribed 13.49 times at a price band of ₹680-715 per share. The public issue booked 3.42 times in the retail category, 7.32 times in qualified institutional buyers, and 45.23 times in the non-institutional investors segment.

As per the document filed with the SEBI, the company had reserved 75% of the issue for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors.

The IPO, having a lot size of 20 shares and in multiples thereafter, was a combination of a fresh issue of 0.24 crore shares worth ₹175 crore and an offer for sale of 0.18 crore shares worth ₹125.13 crore.

The company intends to use capital raised from fresh equities for repayment, in full or part, of certain borrowings availed of by the company and funding capital expenditure for the purchase of new machinery funding. A part of the fund will be used to meet working capital requirements of the company and general corporate purposes. Out of ₹175 crore, ₹100 crore will be used to meet its working capital requirements; ₹10 crore to repay debt and buying machinery, while the remaining fund for general corporate purposes.

Established in December 2000, Krystal Integrated Services provides a wide range of services such as staffing, payroll management, private security, manned guarding, and catering services to hospitals, schools, airports, railway stations, and metro stations. It has positioned itself as a preferred partner in government projects, generating more than 70% of its revenue from government contracts.

As of March 31, 2023, the company served 326 customers, which include 134 hospitals, 224 schools, 2 airports, 4 railway stations, and 10 metro stations. 

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