Krystal Integrated Services lists at 11% premium over its issue price

Krystal Integrated Services made a decent market debut with its shares listing at Rs 795 on BSE, a premium of 11 per cent over its issue price of Rs 715, on Thursday. On the NSE, the stock of the facilities management and security services company listed at 10 per cent higher at Rs 785.

At 10:01 am; Krystal was quoting at Rs 784.75, after hitting a low of Rs 764.65 on the BSE in intra-day trade. A combined 2.5 million equity shares changed hands on the NSE and BSE.

The IPO received good response with the issue getting subscribed 13.49 times. The non-institutional investor segment saw a subscription of 45.23 times, while qualified institutional buyers (QIBs) subscribed 7.32 times. Retail individual investors also showed strong interest, subscribing the issue by 3.42 times.

Providing a comprehensive range of service offerings across multiple sectors, Krystal Integrated Services is a leading integrated facilities management services company with a focus on healthcare, education, public administration airports, railways and metro infrastructure, and retail sectors.

Being a key solutions provider to the government sector, the company is among the select companies in India to qualify for and service large, multi-location government projects. The company is one of India’s leading integrated facilities management services companies, catering to various sectors.

Accounting for almost 88 per cent of the total market size, the public administration, industrial, commercial offices, healthcare, educational institutions, railways, and metro, and airport sectors are expected to drive demand for the market over the longer period.

With the growth opportunities arising from the government sector and the staffing and payroll management market, the company is set to derive benefits from the same, analysts at BP Equities said in an IPO note.

The company also has a competitive advantage as management services require an immense level of expertise, trust, and quality in the provision of service. Filling the gap of such a growing demand, the company emerges as a one-stop solution to cater to the market in the coming years, the brokerage said.

The company boasts a diverse customer base, a wide geographic presence, and a track record of strong financial performance.

However, some key challenges require careful consideration, analysts note.

Krystal's reliance on a limited number of clients, particularly government contracts secured through bidding processes, exposes it to concentration risk. The facility management industry is also highly competitive and operational risks are inherent to the business, said Swastika Investmart.