Krystal integrated services limited – about the company
Krystal integrated services is India's leading integrated management services company which focuses on domains like healthcare, education, public administration, airports, railways and metro infrastructure, and retail sectors. They are a key solutions provider to the government sector and have a track record of executing large contracts. The company provides services to key government customer in the healthcare, education, airport, railways and metro infrastructure sectors, including to Maha Mumbai Metro Operation Corporation Limited and Education Department, Brihan mumbai Municipal Corporation. Companies wide portfolio of services enables us to design and deliver a range of customized solutions suited to the specific needs of our customer, which bolster the customer acquisition and retention capabilities.
Their wide geographic presence enables them to offer services to customer who prefers a single service provider for their operations at multiple locations. Krystal integrated services believe that locating our branches in proximity to their customer premises also results in greater focus on, and attention to customer as well as higher quality and customized service delivery.
Krystal integrated services limited IPO Objectives
An IPO is a mix of a new issue and an offering for sale. The DRHP filed with SEBI shows fresh issuance of Rs. 175 crores and an offer to sell up to 17,50,000 equity shares for up to Rs. 300.13 crores by the promoter's selling shareholder.
According to the DRHP, the business intends to utilize the fresh issue to pare down some of its debt, support capital expenditures, meet company's working capital requirements, and for other corporate objectives. However, the company will not benefit from the cash collected by the selling stockholders.
| Krystal integrated services limited Fresh issue Objective | Amount |
| Repayment/prepayment, in full or part, of certain borrowings availed of by our Company | Rs. . 10 cr |
| Funding working capital requirements of our Company | Rs. . 100 cr |
| Funding capital expenditure for purchase of new machinery | Rs. . 10 cr |
| General corporate purposes | [●] |
Krystal integrated services limited IPO Details:
| IPO Open Date | Mar 14, 2024 |
| IPO Close Date | Mar 18, 2024 |
| Basis of Allotment | Mar 19, 2024 |
| Listing Date | Mar 21, 2024 |
| Face Value | Rs. 10 per share |
| Price | ₹680 to ₹715 per share |
| Lot Size | 20 shares |
| Total Issue Size | 4,197,552 shares |
| (aggregating up to ₹300.13 Cr) | |
| Fresh Issue | 2,447,552 shares |
| (aggregating up to ₹175.00 Cr) | |
| Offer For Sale | 1,750,000 shares of ₹10 |
| (aggregating up to ₹125.13 Cr) | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE & NSE |
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Krystal integrated services limited IPO Issue Price & Size
The issue price of the Krystal integrated services limited IPO is between the price ranges of Rs. 680 to Rs. 715 Investors. looking to bid can apply in the Krystal integrated services limited IPO between these price bands. The total issue size of Krystal integrated services limited IPO is Rs. 300.13 crores which will be combination of offer-for-sale (OFS) of 1,750,000 equity shares and fresh issue of Rs 175 crores.
Krystal integrated services limited IPO Launch Date
The Krystal integrated services limited IPO will be open on (Mar 14, 2024) and closed on (Mar 18, 2024). That means investor can bid between the (Mar 14, 2024 to Mar 18, 2024). The basis of the allotment date and listing date will be also updated soon as per the official dates declared by the company at the time of the IPO launch.
Krystal integrated services limited Financial Statements:
| Particulars.
(Rs. in Millions) |
For the year ended
31st March 2023 |
For the year ended
31st March 2022 |
For the year ended
31st March 2021 |
| Revenue from Operations | 7076.36 | 5526.76 | 4712.89 |
| Other Income | 33.29 | 21.81 | 30.2 |
| Total Income | 1709.65 | 5548.57 | 47.4309 |
| Operational Expenses | 6242.08 | 4955.54 | 4200.85 |
| Other expenses | 335.93 | 191.24 | 310.52 |
| EBITDA | 545.09 | 454.57 | 301.05 |
| EBITDA Margin % | 7.70% | 8.22% | 6.39% |
| Depreciation | 46.57 | 42.95 | 46.9 |
| Finance cost | 94.92 | 87.78 | 90.6 |
| Profit After Tax | 384.44 | 262.74 | 168.24 |
| PAT Margin% | 4.43% | 4.75% | 5.57 |
Key Performance Indicators |
|||
| EPS (Rs. ) | 33.33 | 22.69% | 14.45 |
| EPS Diluted (Rs. ) | 33.33 | 22.69 | 14.45 |
| Debt equity ratio | 0.31 | 0.45 | 0.5 |
| Net debt to EBITDA | 0.002 | 0.85 | 1.34 |
| Net worth | 1634.12 | 1638.55 | 1360.75 |
Krystal integrated services limited Financial performance
- Revenue from operations for FY21, FY22 and FY23 was Rs. 471cr, Rs. 552cr and Rs. 707cr.
- Profit after taxes has gone up over the years, going from Rs. 16.82cr in FY21 to Rs. 38.44cr in FY23.
- In terms of percentage of total income, profit after taxes is the biggest among its peers and that has been going up steadily from 3.57 % in FY21 to 5.43 % in FY23.
- EBITDA (earnings before interest, tax, depreciation and amortization) for Fiscals 2021, 2022 and 2023 was Rs. 30cr, Rs. 45.4cr and Rs. 54.4cr.
- ROE (return on equity) for Fiscal 2021, 2022 and 2023 was 13.18percent, 17.37percent and 23.18percent, and ROCE for the same periods was 19.01percent, 25.03percent and 28.82percent.
Krystal integrated services limited IPO Promoters & Shareholding of the Company
| Name of the shareholder | Number of
equity shares |
Percentage of the issued and
paid-up share capital (%) |
| Neeta Prasad Lad | 30,00,000 | 30% |
| Saily Prasad Lad | 33,26,465 | 33.26% |
| Shubham Prasad Lad | 33,26,465 | 33.26% |
| Shoubham Cinevisions Pvt Limited | 3,47,070 | 3.47% |
| Total | 1,00,00,000 | 100% |
Why Invest in Krystal integrated services IPO?
While investing in an IPO-bounded company you should check its fundamentals that help to know its financial performance and competitive strength that drives its business growth. Fundamental analysis apart from financial and competitive strength, also help you to know the risk factors that can affect the business operations and future prospects of the company. After evaluating the variables such strength weakness, financials, you may strike a balance and decide to invest or not invest in an IPO.
Also Read: Difference Between Fundamental Analysis and Technical Analysis
In a listed company, apart from fundamental analysis, you can also perform the technical analysis, which also helps to know the share price valuation and movement as per the performance of the company. However, for an unlisted company, or company that introduced the IPO, you have only options to analyse the fundamentals of the company and compare the share price valuation from its listed peer group companies.
Business Operations and Services Offered by Krystal integrated services
Krystal integrated services have a broad geographic presence and customer base, providing integrated management services in India. The company has service concentration in healthcare, education, public administration, airports, metro infrastructure, etc. Their exhaustive variety of services includes integrated facility administration, staffing and payroll, private security, manned guarding, and catering services.
Company’s revenue from operations from each business vertical in the last three fiscals is listed in the table.
| Business Vertical | Fiscal ended Mar 31, 2021 | Fiscal ended Mar 31, 2021 | Fiscal ended Mar 31, 2021 | |||
| Revenue (Rs. in million | As a % of Total Rev. from Ops | Revenue (Rs. in million | As a % of Total Rev. from Ops | Revenue (Rs. in million | As a % of Total Rev. from Ops | |
| Integrated Facility Management Services | 3348.13 | 71.04 | 3230.91 | 58.46 | 4272.98 | 60.38 |
| Staffing and Payroll Management | 718.4 | 15.24 | 1474.94 | 26.69 | 1784.11 | 25.21 |
| Private Security and Manned guarding | 611.78 | 12.98 | 772.86 | 13.98 | 924.46 | 13.06 |
| Catering | 34.58 | 0.73 | 48.05 | 0.87 | 94.81 | 1.34 |
| Total | 4712.89 | 100 | 5526.76 | 100 | 7076.36 | 100 |
Competitive Strengths of Krystal integrated services:
-
Range of service offerings
As per the prospectus filed, the company offers range of integrated facility management service across sectors. Krystal integrated services is among the few companies in India that have such a wide geographic presence and vast customer base catering to almost all end user segments. Under their integrated facility management they provide both hard and soft services.
| Sector | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | CAGR | |||
| Rs. million | % of Rev. from Ops (%) | Rs. million) | % of Rev. from Ops (%) | Rs. million | % of Rev. from Ops (%) | ||
| Hospitals and Healthcare | 1609.12 | 34.14 | 2079.43 | 37.62 | 2664.59 | 37.65 | 28.65 |
| Education | 1451.09 | 30.79 | 1030.96 | 18.65 | 1454.3 | 20.55 | 0.11 |
| Public Administration | 116.44 | 2.47 | 839.28 | 15.19 | 928.41 | 13.12 | 182.37 |
| Airport, Railways and
Metro Infra |
362.09 | 7.68 | 347.84 | 6.29 | 489.21 | 6.91 | 16.24 |
| Retail | 375.13 | 7.96 | 364.7 | 6.6 | 483.65 | 6.83 | 13.55 |
| Banking and financial
Services |
208.1 | 4.42 | 164.92 | 2.98 | 171.76 | 2.63 | -9.15 |
| Manufacturing &
industrials |
96.11 | 2.04 | 139.1 | 2.52 | 191.27 | 2.7 | 41.07 |
| Others | 494.81 | 10.5 | 560.53 | 10.14 | 693.18 | 9.8 | 18.36 |
| Total | 4712.89 | 100 | 5526.76 | 100 | 7076.36 | 100 | 22.54 |
-
Focused business model
With 40000 strong hands, the company has a solid track record of executing and completing big service contracts. They stand under a bright position as one of the few organizations that qualify for multi-location and large government projects. Government has been coming up with big projects and that projects demand professional management.
| Sector | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |||
| Amount (Rs. million) | Percentage of Revenue from Operations (%) | Amount (Rs. million) | Percentage of Revenue from Operations (%) | Amount (Rs. million) | Percentage of Revenue from Operations (%) | |
| Healthcare | 2664.59 | 37.65 | 2079.43 | 37.62 | 1609.1 | 34.14 |
| Education | 1454.3 | 20.55 | 130.96 | 18.65 | 1451.1 | 30.79 |
| Government Contracts | 5212.75 | 73.66 | 4050.85 | 73.3 | 3271.1 | 69.41 |
-
Longstanding relationship with customers, with recurring business
Krystal integrated services through their high standards has maintained longstanding relationship with its clients. They have been consistently expanding their offerings to meet evolving demand of their client, that can be seen from their upward sloping chart of number of customers and number of locations.
| Name | Revenue generated (Rs. million) | Period of association (Number of years) | ||
| Fiscal 2021 | Fiscal 2021 | Fiscal 2021 | ||
| Customer 1 (Government sector) | 1429.01 | 1894.48 | 2470.15 | 3 |
| Customer 2 (Government sector) | 629.33 | 423.6 | 672.73 | 9 |
| Customer 3 (Private sector) | 295.85 | 292.42 | 381.21 | 16 |
| Customer 4 (Government sector) | 639.49 | 338.84 | 342.64 | 7 |
| Customer 5 (Government sector) | 154.62 | 150.69 | 321.7 | 14 |
| Customer 6 (Government sector) | - | 247.07 | 259.1 | 1 |
| Customer 7 (Government sector) | - | - | 201.43 | 1 |
| Customer 8 (Private sector) | 159.18 | 162.22 | 165.12 | 16 |
| Customer 9 (Private sector) | 227.82 | 177.65 | 161.49 | 16 |
| Customer 10 (Government sector) | - | 133.93 | 160.2 | 2 |
-
Wide geographic presence with large and efficient workforce
The expansion of shores has been possible due to their healthy pool of near about 40k employees, with dedicated recruitment and training teams comprising of 3 and 14 employees. New Location comes as a circular loop for new customer and new recruits. Expansion in locations leads to ever-changing customer requirement and wide geographic presence enables the company to recruit, train and deploy resources at various customer locations within a short span of time, efficiently and effectively.
-
Historical track-record of strong financial performance, with a scalable, agile and efficient business model
Company on financial performance front has been improving year after year by healthy margins. Total profits have increased two fold from Rs. 16.8 cr in 2021 to Rs. 38.4 cr in 2023. Likewise, ROE has improved from 13% in FY21 to 23% in FY23. Return on capital employed has also improved from 19 prcnt in FY21 to 29 prcnt in FY23.
Risk Factors of Krystal integrated services:
-
Revenue concentration on a limited number of customers
The company is highly dependent and generate significant portion of their revenue from key consumers. The top 10 customers generated revenue of Rs. 513cr, Rs. 393cr, and Rs. 375cr, representing 72%, 71%, and 79% of its revenue from oprtions.
-
Significant part of revenue is generated from government contracts.
Revenue from government entities forms a significant part of company. The company received Rs. 327cr, Rs. 521cr, and Rs. 405cr in income from government entities in FY23, FY22, and FY21, respectively. For FY23, FY22, and FY21, the cmpny obtained bid success rates of 14.58 prcnt, 19.23 prcnt, and 4.76 prcnt in relation to government contracts, respectively.
Two writ petitions against the organization were filed with the High Court of Delhi in New Delhi, concerning the evaluation procedure for security manpower services in Department of Education-operated government institutions.
-
Geographical concentration of revenue
Significant portion of their revenue is derived from services offered to few locations in Maharashtra and Tamil Nadu. For Fiscals 2023, 2022 and 2021, revenue from Maharashtra was Rs.306.2cr, Rs.231.6cr, and Rs.223.4cr, , which represented 43%, 41%, and 47% of their revenue from operations. For Fiscals 2023, 2022 and 2021, revenue from operations from Tamil Nadu was Rs.266.1cr, Rs.204.5cr, and Rs.152.6cr, which represented 37%, 37%, and 32% of our revenue from operations.
-
Highly manpower-intensive Business
The company spends significant time and resources in training the manpower it has put on payroll. Often there are instances when employees after taking initial trailing switch to other employers in race to get an increment and salary hikes.
Krystal integrated services IPO Grey Market Premium (GMP)
Grey market premium is the premium quoted over the IPO issue price. GMP shows that investors are ready to pay above the upper band of the IPO issue price. GMP is determined in the grey market as per the demand and supply of the shares in the primary market. A grey market is that unofficial ecosystem of unlisted companies' stocks that start trading even before the launch of the IPO to the date of its listing.
Also Read: What is Grey Market Premium in IPO: How is GMP Calculated & Reliable
However, GMP is not a reliable factor, as it keeps fluctuating as per the demand and supply of shares in the primary market. There are numerous factors that affect the stock market in India and individual stock prices of different companies that are already listed and trading in the secondary market. However, for an IPO-bounded company, you can consider the GMP as the speculative listing price of the share
According to various online sources, the Grey Market Premium or GMP of the Krystal integrated services is trading around Rs XXX in the grey market. It means shares are trading at the upper band issue price of Rs XXX with a premium or discount in the grey market and may list around the same price.
How to Apply for Krystal integrated services IPO?
To apply in Krystal integrated services IPO you need to opendemat account to hold your allotted shares and a trading account to sell or buy the shares into the secondary market. And not only applying in the IPO, but while buying or selling the shares in the stock market you also need both these types of accounts. Hence, you can apply here at Moneysukh to open a trading and demat account at the lowest brokerage.
Also Read: Features of Best Demat Account with Lowest Brokerage Charges in India
Having both these accounts at Moneysukh, you will get the advantages of the best online trading apps to trade or invest in equities, commodities and currencies. Here you will get the flexibility to choose the best trading platform and advanced trading software like Keev, TradeTron, Quantman, AlgoBulls, Trade Radar, and FoxTrader all integrated with TradingView to facilitate the best trading experience.
Also Read: Equity or Commodity which is better for Trading or more Profitable
Moreover, you can also start algo-trading – a high-frequency trading mechanism to choose the best algo-trading platforms and trade with best intraday algo-trading strategy at the lowest brokerage pricing. At Moneysukh you can also get stock recommendations and tips backed with research reports and useful tutorials on the stock market to help the clients understand the stock market in a better way. However, right now to apply for the Krystal integrated services IPO you can follow the steps given below.
Steps to Apply for Krystal integrated services IPO:
Step 1: When Krystal integrated services IPO opens you can bid online.
Step 2: Just go to trade.moneysukh.com and log in with your User ID & password.
Step 3: Now look for the IPO section and click on the Krystal integrated services IPO.
Step 4: Here you need to fill in the required details like price, quantity, and so on.
Note: At the time of applying for the IPO, make sure to bid at the cutoff price and then submit your application.
Step 5: Now make the required payment and then submit your IPO application successfully.
How to Check Krystal integrated services IPO Allotment Status?
Checking the allotment status online is very easy if you have the PAN details and IPO application number. But checking the details of the IPO allotment is possible only when the basis of allotment is arrived. In the case of Krystal integrated services IPO, you can also check the allotment status through various online sources.
Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh
And the basis of the allotment is highly dependent on the oversubscription of the IPO. If the IPO is oversubscribed by many folds, then for the investors who applied through the retail category or HNI category, the chances of getting the allotment become very low. Here while applying to such over-demanding IPOs you can follow some tips to improve your chances of getting the allotment in IPO.
Also Read: How to Increase the Chances of IPO Allotment
And when due to oversubscription of IPOs, you don’t get any allotment of shares, then your money will be refunded back into your bank account or fun will be unblocked if you applied through ASBA. However, despite the oversubscribed IPO, if get the allotment then the allocated shares will be transferred into your demat account any time before the date of listing. That you can sell in the secondary market after listing or keep from the long-term investment point of view.
Also Read: Why You Should Invest in the Stock Market: Reasons & Benefits
