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Krystal Integrated Services Ltd. is India’s leading integrated facilities management services company, with a focus on healthcare, education, public administration airports, railways and metro infrastructure, and retail sectors. Krystal Integrated Services IPO of  ₹300.13 crore consists of an offer to sale of 1,750,000 Equity shares, valued at ₹125.13 crores, and a new issuance of around 2,447,552 shares valued at ₹175.00 crores.

About Krystal Integrated Services IPO:

• They are one of India’s leading integrated facilities management services companies, with a focus on healthcare, education, public administration (state government entities, municipal bodies and other government offices), airports, railways and metro infrastructure, and retail sectors.
• They provide a comprehensive range of integrated facility management service offerings across multiple sectors, and consequently are among select companies in India that have a wide geographic presence and customer base, catering to almost all end-user segments, as on March 31, 2023.
• Their range of service offerings include soft services such as housekeeping, sanitation, landscaping and gardening, hard services such as mechanical, electrical and plumbing services, solid, liquid and biomedical waste management, pest control and façade cleaning and other services such as production support, warehouse management and airport management services (including multi-level parking and airport traffic management).
• They also provide staffing solutions and payroll management to our customers, as well as private security and manned guarding services and catering services.
• Prasad Minesh Lad, Neeta Prasad Lad, Saily Prasad Lad, Shubham Prasad Lad and Krystal Family Holdings Pvt Ltd are the promoters of the company.

Financials: Krystal Integrated Services IPO

Krystal Integrated Services IPO: Anchors

Krystal Integrated Services IPO: Salient Points

• Growing investments in end user segments, increasing outsourcing from government sector, widening scope of facility services are all expected to favour the business growth of the organised companies in Integrated Facilities Management Market in the long-term.
• The net proceeds from the fresh issue will be used towards Repayment/prepayment, in full or part, of certain borrowings availed of by the company; Funding working capital requirements of the company; Funding capital expenditure for purchase of new machinery; and General corporate purposes.
• Their strengths in the market include ther ability to provide bespoke solutions for integrated facility management requirements, sourcing from OEMs at competitive prices due to excellent long-term relations, best-in-class products, and adoption of smart technology.
• They are a key solutions provider to the government sector and have a track record of executing large contracts and are among select companies in India to qualify for and service large, multi-location government projects.
• For Fiscals 2021, 2022 and 2023 and six months ended September 30, 2023, revenue from government contracts amounted to 69.41%, 73.30%, 73.66% and 76.27% of the revenue from operations.
• Revenue generated by providing services to these sectors:

• They provide services to key government customers in the healthcare, education, airport, railways and metro infrastructure sectors, including to Maha Mumbai Metro Operation Corporation Limited and Education Department, Brihanmumbai Municipal Corporation.

• Peers

• As shown in table above they enjoy better Profit margins than Peers.
• As of September 30, 2023, the company had provided services to 135 hospitals and medical colleges, 228 schools and colleges, one airport, four railway stations, and 30 metro stations.
• The top four companies in the Integrated Facilities Management Market are Sodexo, BVG, Quess Corp, and SIS Limited^*. They have a combined market share of 6.8% of the total market in FY2023.
• Krsytal is the eighth largest player in the Integrated Facilities Management Market in FY2023 in terms of revenues as on March 2023.
• In FY23, Revenue was up 28 per cent while net profit saw a 46 per cent jump compared to FY22.
• H1FY24 figures too were equally good.
• Healthcare sector services forms 38% of its business.
• Krystal Integrated Services IPO is coming at a PE ratio of 27.5x(fy23 earnings) and 24.3x ( fy24 annualized earnings).
• I am inclined to apply for Krystal Integrated Services IPO but will make up my mind after seeing the trend of overall subscription on Day3. There is some hesitation as in present market conditions many mainline IPOs have recently witnessed extremely muted listings. Anchor response is good and it may witness good QIB demand. The IPO appears OK compared to peers.
• GMP as reported on social media has been Rs. 60.
• Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.