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Krystal Integrated Services Limited (Krystal), a 30-year-old facilities management service provider in India, is gearing up for its initial public offering (IPO). Krystal Integrated Services offers various services, ranging from housekeeping, sanitation, and gardening to mechanical, electrical, and plumbing services. Moreover, they are also into staffing, payroll management, private security, and airport management. So, should you subscribe to the Krystal Integrated Services IPO? This blog provides a comprehensive analysis of the upcoming IPO, including key details, financial performance, Krystal Integrated fundamentals, and potential IPO investment considerations.

Krystal Integrated Services IPO: fundamentals

  • Issue Dates: March 14th, 2024 - March 18th, 2024
  • Price Band: ₹680 - ₹715 per share
  • Minimum Investment: ₹14,300 (for 20 shares)
  • Listing: BSE & NSE (expected listing date: March 21st, 2024)
  • Issue Size: ₹300.13 Crore (combination of fresh issue and offer for sale)

About Krystal Integrated Services Limited

  • Established in December 2000, Krystal boasts a strong presence across 14 states and 1 union territory in India.
  • They offer a diversified range of facilities management services, including:

    • Housekeeping & Sanitation
    • Landscaping & Gardening
    • Mechanical, Electrical & Plumbing (MEP) Services
    • Waste Management & Pest Control
    • Security & Catering Services
    • Production Support, Warehouse & Airport Management

  • As of March 31, 2023, Krystal served a vast clientele, including:

    • 134 Hospitals
    • 224 Schools
    • 2 Airports
    • 4 Railway Stations
    • 10 Metro Stations

Krystal Integrated Services: financials

  • Krystal has demonstrated consistent growth in recent years:

    • Revenue from operations, total profit (after tax), and EBITDA grew at a CAGR of 22.54%, 51.17%, and 34.56%, respectively, from FY2021 to FY2023.
    • Revenue increased by 28.13% and PAT by 46.89% between FY2022 and FY2023.

Krystal Integrated IPO: fund utilisation plans

  • The company plans to utilise the net proceeds from the fresh issue for:

    • Repayment/prepayment of borrowings
    • Funding working capital requirements
    • Purchase of new machinery
    • General corporate purposes

Considerations for the Krystal Integrated IPO

  • Strengths:

    • Strong track record and established client base across diverse sectors (healthcare, education, infrastructure etc.)
    • Diversified service portfolio catering to growing facilities management needs
    • Consistent financial growth with increasing revenue and profitability

  • Weaknesses:

    • Dependence on regional markets
    • Competition from established players in the facilities management sector

  • Opportunities:

    • Rising demand for facilities management services driven by infrastructure development and increasing focus on hygiene
    • Potential for expansion into new service offerings and geographic regions

  • Threats:

    • Fluctuations in fuel prices and other operational costs
    • Economic downturns impacting client budgets

Before you invest in the IPO

  • Carefully analyse the company's financials, business model, and future growth prospects.
  • Consider your risk tolerance and investment goals.
  • Compare Krystal's IPO with other investment options in the facilities management sector or broader market.
  • Consult a financial advisor for personalised guidance.

Conclusion

Krystal Integrated Services IPO presents an opportunity for investors to participate in the growing facilities management sector in India. The company's strong track record, diversified services, and consistent financial growth are positive indicators. However, potential investors should be aware of the competitive landscape and other risk factors before making an IPO investment decision. Thorough research and due diligence are crucial before investing in any IPO.

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