Krystal Integrated Services IPO Subscription Status
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.
The pricing range for Krystal Integrated Services' shares is Rs 680–715 per share. A minimum of 20 shares, and all multiples thereof, may be applied for by investors.
Investor reaction to Krystal Integrated Services' initial public offering (IPO) was tame on the second day of the bidding process. All bidder types showed varying degrees of interest in the subject. On the first day of bidding, 36% of the issue was subscribed overall.
Krystal Integrated Services, a Mumbai-based company, is offering its shares for sale for between Rs. 680 and Rs. 715 each. A minimum of 20 shares, and all multiples thereof, may be applied for by investors. The promoter, Krystal Family Holdings, is offering up to 17.50 lakh shares for sale (OFS) as part of the Rs 300 crore offering, in addition to a new share sale of Rs 175 crore.
The data according to BSE shows that at 2.48 pm on Friday, March 15, investors had bid for 16,26,680 equity shares, or 54%, of the 29,99,448 equity shares available for subscription. The issue is up for bid, and it will end on Monday, March 18, after it opened on Thursday, March 14.
The allocation for retail investors was subscribed to 51%, while the portion reserved for non-institutional investors saw a subscription of 69%. However, the portion set aside for qualified-institutional bidders (QIBs) attracted bids for 49%, as of the same time.
Amidst the turmoil in the larger markets, Krystal Integrated Services' grey market premium has experienced a significant correction. As of the last hearing, the business was asking for a grey market premium (GMP) of Rs 35–40, meaning that investors would only be offered a 5% listing premium. But previously, its GMP was Rs 90.
Brokerage firms that follow the issue are largely optimistic about it because of its solid performance in execution, great track record, strong financial growth, and fair valuations. Because of the state of the market, the industry's intense rivalry, and the reliance on a small number of clients, some analysts, nevertheless, have doubts about the matter.
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.
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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.
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