Krystal Integrated Services Limited IPO Review
- Vaani Shrivastava
- Mar 14, 2024
- 10 min read
Updated: Jan 2
Krystal Integrated Services Limited IPO Details
Krystal Integrated Services Limited was founded on the 1 st of December, 2000, and it has since positioned itself as an epitome of innovation and superiority in the business service provision arena. Having a strong base in the busy city of Mumbai in Maharashtra, this unlisted public company has rocketed to phenomenal heights with an authorised share capital of INR 15.00 cr. and a strong paid-up capital of INR 11.52 cr.
The journey of the company started with the vision of redesigning the facility management, security, portfolio management and aviation services. Krystal Integrated Services has, over the years, diversified to front office management, pest control, surveillance equipment, bulletproof cars and escort vehicles, among others.
With a diverse customer base, KISL provides a full range of services that would suit the needs of different industries, such as the health sector, education, local government, airports, railways, and the retail sector. KISL has a strong workforce of more than 40,000 on-site workers and a special training school at Vashi, Maharashtra, and is thus in a great position to offer customised solutions to the integrated facility management needs in the country.
Competitive Strengths
Krystal Integrated Services Limited has made a name for itself as a force to be reckoned with in its business, and it has strong competitive advantages, which have been demonstrated in its financial results. Krystal Integrated Services can offer a broad spectrum of services and thus establish itself as a one-stop facility management shop. This will be able to draw in customers who like consolidating their suppliers and simplifying their communication.
Revenue, Sales, and Profit
The Krystal Integrated Services Limited revenue, sales, and profit report indicates that the company has experienced remarkable growth in the past three years. In 2021, the company had a revenue of INR 506.12 crore, and then it went to INR 538.24 crore in 2021 and 2022. This positive trend shows that there is ongoing growth in the sales performance of the company.
In line with this, the net profit of the company also grew at a significant rate in the same period. The net profit in 2021 was INR 22.49 crore, and evolved to INR 26. 02 crore in 2022, and rose to INR 38. 21 crore in 2023. This is not just a testimony of a growth in revenue but also a rise in the profitability of the company over the years. This strong financial performance highlights how strategies of the company have worked and how the company has been able to exploit market opportunities.
Distribution Network and Geographical Reach
Krystal Integrated Services Limited has a strong distribution network that covers various strategic locations and thus ensures effective and punctual provision of services. Their territorial coverage is also very large, covering most of the metropolitan regions, giving them a competitive edge in terms of access and market penetration. Krystal Integrated Services Limited (KISL) has an excellent reputation in the field of integrated facilities management services in India, with a strategic presence in 16 states and two union territories. The company has an extensive network with 21 branch offices, which have enhanced the delivery of personalised services with high quality in the country. With an extensive range of clients, KISL provides its clients with a full package of services that address the requirements of different segments of the population, such as healthcare, education, government, airports, railways and stores. KISL has an efficient workforce of more than 40,000 full-time employees based on the ground and has a highly qualified training academy in Vashi, Maharashtra, making it well-suited to offer custom solutions to each integrated facility management need of the country.
Unique Features
Krystal Integrated Services Limited has been able to create a distinctive combination of innovative solutions and customer focus, which has made it stand out among other competitive organisations in the corporate world. The core of its business activities is the endeavour to combine the latest technology with customised services where every customer is offered a unique experience that meets their particular needs. The portfolio of the company has a wide variety of services, such as but not limited to strategic consulting, digital transformation, and project management. The most significant difference between Krystal Integrated Services Limited and its competitors is its commitment to sustainable practices and ethical business, which appeals to the increased expectations of corporate responsibility in the world today. The firm is always looking at the future, and its strategies are constantly being modified to meet the new trends of the market and new technologies, making it a leader in service delivery that can be viewed as progressive.
Investment in Research and Development
Krystal Integrated Services Limited has been highly investing in research and development (R&D) and hence evidences a strong interest in innovation and growth. This strategic action will help them to improve their services, customer satisfaction and keep a competitive advantage in the market. The R&D of this company is aimed at the implementation of the latest technologies and the creation of new solutions that should address the changing needs of their clients.
Krystal Integrated Services Limited IPO
Issue Date: The issue date of an IPO is the specific date of an issue where the shares of a firm are issued to the investors who have subscribed to the IPO. This is a date on which the company issues shares to its subscribers. (March 14, 2024 to March 18, 2024).
Listing Date: The listing date of these shares is the date on which they are first traded on a stock exchange. This will be the start of the share trading on the market, and all the market participants will be able to buy and sell the company shares(Date: March 21, 2024).
Face Value of Shares: The face value of the shares refers to the nominal value of a stock, which is established by the issuer during the issue of shares. This is normally a small figure, which does not represent the real market value of the shares. The accounting value of the equity of a company, the dividend payments and the par value of bonds are calculated based on the face value of their share. ( IPO Face Value: INR 10 per share).
Price Band: The price band of an IPO is the price variation within which the investors can bid for the shares of a company that is going public. The issuer, in collaboration with the lead managers of the IPO, determines the price band, which is subject to a number of factors that include the demand and supply of the shares, the financial performance of the company and its valuation, and the market conditions. (IPO Price: INR 680 to INR 715 per share).
Lot Size: The minimum number of shares that an investor can acquire at an initial Public offering (IPO) is known as the lot size. It depends on the company going public, and it is a method of having the number of shares that are being offered to the investors standardised. (Lot Size: 20 Shares).
Total Issue Size: The sum of all the shares that the company will sell in its IPO is known as the total issue size. It is determined by multiplying the quantity of shares being offered by the price per share. The size of the issue provides the investors with a sense of the size of the IPO and the possible value of the market capitalisation of the company after the IPO. [Total Issue Size: 4,197,552 shares (including to a maximum [?]300.13 Cr)].
Fresh Issue: Fresh issue of an IPO is the new shares that a company produces and markets to the public for the first time during this offering. This is how a company raises capital, mainly by the use of an IPO. The money raised by the fresh issue is utilised in different ways as stipulated in the prospectuses of the company, like expansion plans, debt repayment, or research and development. (Fresh Issue: 2,447,552 shares (totalling up to [?]175.00 Cr)).
Offer for Sale: The amount and type of shares that are being sold by the firm to the public are called the offer for sale. The sale offer may be either primary, secondary or a mixture of both. A primary offer of sale refers to the company offering new shares and raising new money. A secondary offer of sale implies that the current shareholders are selling the shares to them and get pay-out. A combination offer of sale refers to the sale of new and existing shares. (Proposals of sale: 1,750, 000 shares of [?]10 (up to [?]125.13 Cr)).
Issue Type: There is a variety of types of an IPO that can be offered based on the market and the regulatory environment. The most common forms of IPOs include Fixed priced IPO, Auction IPO, Book Building IPO and Hybrid IPO. (Issue Type: Book Building IPO).
Listing At: The listing is an inseparable part of the IPO. This is defined as the day when the company shares actually commence trade on a stock exchange, i.e. the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE) in India. When listed, any person with a brokerage account may sell and purchase the shares in the company on the exchange. (Listing at: BSE, NSE).
Retail Shares Offered: Retail shares offered can be described as the share issues that are offered to individual retail investors in an initial public offering (IPO). (Retail Shares Offered: Not less than 35% of the net offer).
QIB Shares Offered: QIBs are institutional investors i.e. banks, mutual funds, insurance companies, pension funds, etc. They have the expertise and financial resources to invest in the securities market. They are described as knowledgeable and experienced investors who have the capability to evaluate the risks and returns of an IPO. QIBs may make bids on up to 50 per cent of the total number of shares being sold in an IPO through the profitability route, or up to 75 per cent of the total number of shares being sold in an IPO through the QIB route. QIBs need to pay 10 per cent of the amount of the bid during application, and the remaining percentage thereafter when the basis of allotment is finalised. (Shares of QIB to be offered: Not exceeding 50% of the net offer).
NII (HNI) Shares Offered: NII (HNI) Shares offered refer to Non-Institutional Investors (High Networth Individuals) shares, which are considered by investors not belonging to the retail or the QIB category and are usually associated with a greater amount of money. (Not less than 15% of the net offer: NII Shares Offered).
Competitors of Krystal Integrated Services Limited
There are a number of companies that Krystal Integrated Services Limited competes with in the facilities management industry. The following is a synopsis of the competitor situation:
Listed Competitors:
SIS Ltd (Security and intelligence services): One of the top security and facilities management service providers in India. They provide comparable services to Krystal and may be more security-oriented. There is their financial information, which is publicly available as they are already traded on the stock exchange.
Quess Corp: A competitor with a big presence in the facilities management industry in India. They may enjoy a more national presence than Krystal or even a greater variety of service products. Like SIS Ltd, their finances are publicly traded as they are a listed company.
Unlisted Competitors:
It is probable that there are many regional players and experts who deal with specific facility management services. Such companies may be a threat to certain contracts on the basis of the nature and location of the project.
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
The IPO of Krystal Integrated Services Limited offers an investor a chance to invest in a company that is expanding in the facilities management industry. It has a full-service portfolio, has an excellent history of government contracts, and has encouraging financial positions. The IPO, however, is priced at a high, and the company will have competition with the existing players.
In the end, it is up to you to decide on your risk sensitivity and the target of your investment. Take into account the strengths and weaknesses of the company and your investment plan properly before deciding on the action to take.
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.
Download the MyRupaya App
Compare, choose, and discover all the best offers on credit cards in India — all in one place
Comments