Krystal Integrated Services Secures Over Rs 90 Crore from Anchor Investors Ahead of IPO

New Delhi, March 13: Krystal Integrated Services, a leading facility management and security services provider, announced on Wednesday that it has successfully raised over Rs 90 crore from anchor investors, a day before its initial public offering (IPO). This marks the fifth IPO in the mainboard segment in March, following RK Swamy, JG Chemicals, Gopal Snacks, and Popular Vehicles and Services.

Representative image

Allotment of Equity Shares

The company allotted 12.59 lakh equity shares to 10 funds at a price of Rs 715 per share, which is the upper end of the price band. This allotment resulted in Krystal Integrated Services garnering Rs 90.03 crore from the anchor investors. Prominent participants in the anchor round included ITI Mutual Fund MF, Quant MF, BofA Securities Europe SA, Aegis Investment Fund PCC, Saint Capital Fund, Coeus Global Opportunities Fund, and Negen Capital, among others.

Public Issue Details

The public issue has a price band of Rs 680-715 per share. The IPO comprises Rs 175 crore in fresh issue and Rs 125 crore in offer-for-sale by the promoters. Post-issue, the overall promoter holding led by promoter Pravin Ramesh Lad and his family Krystal Family Holdings will be reduced to close to 70 per cent.

Utilization of Proceeds

The company plans to utilize the net proceeds from the fresh issue for various purposes. A significant portion will be allocated towards the partial repayment of its debt of Rs 187 crore. Additionally, Rs 100 crore will be used to fund working capital requirements, and Rs 10 crore will be invested in capital expenditure for purchasing new machinery.

Company's Financial Performance

Krystal Integrated Services reported a revenue of Rs 707 crore and a net income of Rs 39 crore in the financial year 2023. The company commenced operations in 2000 as a private security staff provider and expanded into the facility management segment in 2005. Notably, around 70 per cent of its facility management business is derived from government agencies and departments, including leading airports, the BMC headquarters, and numerous temples.

Krystal Integrated Services' successful anchor round and upcoming IPO position the company for further growth and expansion. With a strong track record and a diverse client base, the company is poised to capitalize on the growing demand for facility management and security services in India.