Krystal Integrated Services Limited IPO Details
Founded on the 1st of December, 2000, Krystal Integrated Services Limited has established itself as a beacon of innovation and excellence in the realm of business services. With its roots firmly planted in the bustling city of Mumbai, Maharashtra, this unlisted public company has soared to remarkable heights with an authorized share capital of INR 15.00 cr. and a robust paid-up capital of INR 11.52 cr.
The company's journey began with a vision to redefine facility management, security, portfolio management, and aviation services. Over the years, Krystal Integrated Services has expanded its portfolio to include front office management, pest control, surveillance equipment, bulletproof cars, escort vehicles, and more.
Catering to a diverse clientele, KISL offers a comprehensive suite of services tailored to meet the needs of various sectors including healthcare, education, public administration, airports, railways, and retail. With a robust workforce of over 40,000 on-site employees and a dedicated training academy in Vashi, Maharashtra, KISL is well-equipped to provide bespoke solutions for integrated facility management requirements across the country.
Competitive Strengths
Krystal Integrated Services Limited has established itself as a formidable player in its industry, showcasing robust competitive strengths that are reflected in its financial performance. Krystal Integrated Services positions itself as a one-stop shop for facilities management by providing a wide range of services. This can attract clients who prefer consolidating their vendors and streamlining communication.
Revenue, Sales, and Profit
The revenue, sales, and profit report of Krystal Integrated Services Limited reveals significant growth over the last three years. In 2021, the company generated a revenue of INR 506.12 crore, which increased to INR 538.24 crore in 2022, and further rose to INR 685.51 crore in 2023. This upward trend demonstrates consistent expansion in the company's sales performance.
Correspondingly, the net profit of the company also experienced a notable increase during the same period. In 2021, the net profit stood at INR 22.49 crore, which grew to INR 26.02 crore in 2022, and significantly escalated to INR 38.21 crore in 2023. This demonstrates not only an increase in revenue but also an improvement in the company's profitability over the years. Such robust financial performance underscores the company's effective strategies and its ability to capitalize on market opportunities.
Distribution Network and Geographical Reach
Krystal Integrated Services Limited boasts a robust distribution network that spans several key regions, ensuring efficient and timely delivery of services. Their geographical reach extends across major metropolitan areas, providing a strategic advantage in terms of accessibility and market penetration. Krystal Integrated Services Limited (KISL) is a prominent player in India's integrated facilities management services sector, with a strategic presence across 16 states and two union territories. The company's expansive network is bolstered by 21 branch offices, ensuring personalized and high-quality service delivery nationwide. Catering to a diverse clientele, KISL offers a comprehensive suite of services tailored to meet the needs of various sectors including healthcare, education, public administration, airports, railways, and retail. With a robust workforce of over 40,000 on-site employees and a dedicated training academy in Vashi, Maharashtra, KISL is well-equipped to provide bespoke solutions for integrated facility management requirements across the country.
Unique Features
Krystal Integrated Services Limited stands out in the competitive corporate landscape with its unique blend of innovative solutions and customer-centric approach. At the heart of its operations lies a commitment to integrating cutting-edge technology with personalized service offerings, ensuring that each client receives a tailored experience that addresses their specific needs. The company's portfolio boasts a diverse range of services, including but not limited to strategic consulting, digital transformation, and project management. What truly sets Krystal Integrated Services Limited apart is its dedication to sustainability and ethical business practices, which resonate with the growing global demand for responsible corporate conduct. With a keen eye on the future, the firm continuously evolves its strategies to align with emerging market trends and technological advancements, positioning itself as a forward-thinking leader in service delivery.
Investment in Research and Development
Krystal Integrated Services Limited has significantly increased its investment in research and development (R&D), demonstrating a robust commitment to innovation and growth. This strategic move aims to enhance their service offerings, improve customer satisfaction, and maintain a competitive edge in the market. The company's R&D efforts focus on integrating cutting-edge technologies and developing new solutions that meet the evolving needs of their clients.
Krystal Integrated Services Limited IPO
Issue Date: The issue date of an IPO refers to the specific date on which the shares of a company are issued to the investors who have subscribed to the IPO. This is the date when the company officially allocates shares to its subscribers. (March 14, 2024 to March 18, 2024).
Listing Date: The "listing date" is when these shares are first traded on a stock exchange. This marks the beginning of public trading, allowing all market participants to buy and sell the company's shares.(Date: March 21, 2024).
Face Value of Shares: The face value of shares is the nominal value of a stock that is determined by the issuer at the time of issuing the shares. It is usually a small amount, that does not reflect the actual market value of the shares. The face value of shares is used to calculate the accounting value of a company's equity, as well as the dividend payments and the par value of bonds. ( IPO Face Value: INR 10 per share).
Price Band: A price band of an IPO is the range of prices within which the investors can bid for the shares of a company that is going public. The price band is set by the issuer and the lead managers of the IPO, based on various factors such as the demand and supply of the shares, the financial performance and valuation of the company, and the market conditions. (IPO Price: INR 680 to INR 715 per share).
Lot Size: Lot size refers to the minimum number of shares an investor can purchase in an Initial Public Offering (IPO). It is determined by the company going public and is a way to standardize the number of shares offered to investors. (Lot Size: 20 Shares).
Total Issue Size: Total issue size is the total value of shares a company plans to sell during its IPO. It is calculated by multiplying the number of shares offered by the price per share. The total issue size gives investors an idea of the scale of the IPO and the potential market capitalization of the company post-IPO. [Total Issue Size: 4,197,552 shares (aggregating up to ₹300.13 Cr)).
Fresh Issue: Fresh issue in an IPO refers to the new shares a company creates and sells to the public for the first time during the offering. This is the primary way a company raises capital through an IPO. The money raised from the fresh issue is used for various purposes as outlined in the company's prospectus, such as funding expansion plans, repaying debt, or investing in research and development. (Fresh Issue: 2,447,552 shares (aggregating up to ₹175.00 Cr)).
Offer for Sale: The offer for sale, which is the amount and type of shares that the company is selling to the public. The offer for sale can be either primary or secondary, or a combination of both. A primary offer for sale means that the company is issuing new shares and raising fresh capital. A secondary offer for sale means that the existing shareholders are selling their shares and receiving the proceeds. A combination offer for sale means that both new and existing shares are being sold. (Offers for Sale: 1,750,000 shares of ₹10 (aggregating up to ₹125.13 Cr)).
Issue Type: The type of an IPO can vary depending on the market and regulatory conditions. Some of the common types of IPOs are, Fixed priced IPO, Auction IPO, Book Building IPO, and Hybrid IPO. (Issue Type: Book Building IPO).
Listing At: An integral part of the IPO process is the listing. This refers to the day the company's shares officially begin trading on a stock exchange, such as the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) in India. Once listed, anyone with a brokerage account can buy and sell the company's shares on the exchange. (Listing at: BSE, NSE).
Retail Shares Offered: Retail shares offered refer to the portion of shares that are made available to individual retail investors during an Initial Public Offering (IPO). (Retail Shares Offered: Not less than 35% of the net offer).
QIB Shares Offered: QIBs are institutional investors such as banks, mutual funds, insurance companies, pension funds, etc., who have expertise and financial resources to invest in the securities market. They are considered as informed and sophisticated investors who can assess the risks and returns of an IPO. QIBs can bid for up to 50% of the total shares offered in an IPO via the profitability route, or up to 75% of the total shares offered in an IPO via the QIB route. QIBs have to pay only 10% of the bid amount at the time of application, and the rest after the finalization of the basis of allotment. (QIB Shares Offered: Not more then 50% of the net offer).
NII (HNI) Shares Offered: NII (HIN) Shares offered means Non-Institutional Investors (High Networth Individuals) shares, which are reserved for investors who do not fall into the retail or QIB categories and typically involve larger amounts of money. (NII Shares Offered: Not less than 15% of the net offer).
Competitors of Krystal Integrated Services Limited
Krystal Integrated Services Limited faces competition from several companies in the facilities management sector. Here's a breakdown of the competitive landscape:
Listed Competitors:
SIS Ltd (Security and Intelligence Services): A leading security and facilities management service provider in India. They offer similar services to Krystal but might have a stronger security focus. You can find their financial information publicly since they are already listed on the stock exchange.
Quess Corp: Another major player in the Indian facilities management sector. They might have a broader national presence compared to Krystal and potentially a wider range of service offerings. Similar to SIS Ltd, their financials are publicly available since they're a listed company.
Unlisted Competitors:
There are likely numerous regional players and niche specialists focusing on specific facility management services. These companies might pose competition for specific contracts depending on the project requirements and location.
Overall Competitive Landscape:
The key factors Krystal Integrated Services Limited will likely compete on include:
Service Portfolio: The wider the range of services offered, the more attractive Krystal becomes to clients seeking a one-stop shop for facilities management.
Price Competitiveness: Being cost-effective while maintaining quality service is crucial in securing contracts.
Experience in Specific Sectors: Proven experience in catering to specific industries like healthcare or government can be an advantage.
Geographic Reach: Having a national presence allows Krystal to compete for larger, multi-location projects.
Conclusion
Krystal Integrated Services Limited's IPO presents an opportunity to invest in a growing player in the facilities management sector. The company boasts a comprehensive service suite, a strong track record in government contracts, and promising financial figures. However, the IPO is priced at a premium, and the company faces competition from established players.
Ultimately, the decision to invest depends on your individual risk tolerance and investment goals. Carefully consider the company's strengths and weaknesses alongside your investment strategy before making a decision.
Please Read the Detailed Review Here.
Disclaimer: This is not an investment advisory. The article above is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing securities, that suit your needs. The performance and returns of any equity stock can neither be predicted nor guaranteed.
FAQs
Q: What is an IPO?
An Initial Public Offering (IPO) is the first time a company offers its shares for sale to the public on a stock exchange. This allows the company to raise capital for growth and expansion.
Q: How can I apply for an IPO?
There are two main ways to apply for an IPO:
Retail Investor: You can apply through your trading broker using a Demat account and ASBA facility (explained below).
Institutional Investor: Large investors like banks and mutual funds have a separate application process.
Q: What is ASBA?
ASBA (Application Supported by Blocked Amount) is a safe and convenient method to apply for IPOs. With ASBA, the funds you bid for the IPO are blocked in your bank account and only debited if your bid is successful. This prevents unsuccessful applicants' money from being tied up.
Q: What is the difference between a fixed-price and a book-building IPO?
Fixed-Price IPO: The company sets a fixed price for the shares offered in the IPO.
Book-Building IPO: The price of the shares is determined based on investor demand during a bidding process.
Q: What are the risks involved in investing in IPOs?
New companies: IPOs often involve young companies with limited track records, so there's a higher risk of their stock price being volatile.
Overvaluation: Some IPOs can be overvalued, leading to a potential drop in share price after listing.
Q: How much should I invest in an IPO?
IPO investments should be a part of a diversified portfolio. Only invest what you can afford to lose, considering the inherent risks involved.
Q: What happens after I apply for an IPO?
The company allocates shares based on the bids received. You will be notified if your application is successful or not. The shares will then be credited to your Demat account after the listing date.
Q: When should I sell my IPO shares?
This is a personal decision based on your investment goals and risk tolerance. Some investors hold for the long term, while others may sell soon after listing to capture potential gains.
Q: Where can I find information about upcoming IPOs?
Many financial websites and brokerage firms provide information on upcoming IPOs, including issue details, timelines, and prospectuses.
Q: What are the tax implications of investing in IPOs?
Short-term capital gains tax applies to IPO shares sold within one year of purchase. Long-term capital gains tax applies if held for over a year, and the rates may vary depending on the country's tax regulations.