The initial public offering (IPO) of facilities management services provider Krystal Integrated Services saw a positive interest from investors on the final day of bidding, March 18, despite volatility in the equity markets.
The public issue was subscribed 13.48 times, with investors bidding for over 3.96 crore equity shares against an IPO size of 29.38 lakh equity shares, according to subscription data from the exchanges.
The major support for the issue was observed from non-institutional investors, high networth individuals , who submitted bids about 45.22 times higher than the allotted quota. Qualified institutional buyers bid was around 7.33 times the reserved portion, while retail investors subscribe 3.40 times the portion allotted to them.
The Mumbai-based company launched its maiden public issue on March 14 to raise Rs 300.13 crore, comprising a fresh issuance of equity shares worth Rs 175 crore and an offer-for-sale of 17.5 lakh shares worth Rs 125.13 crore by promoter Krystal Family Holdings.
Krystal Integrated Services, via its anchor book built at the top allotment price, mopped up Rs 90.04 crore of the total IPO size. Some of the major institutional investors in the anchor book include ITI Flexi Cap Fund, Quant Business Cycle Fund, BofA Securities Europe, Saint Capital Fund, Aegis Investment Fund, and Zonal Global Opportunities Fund. The Krystal Integrated Services IPO shares were reported to be trading with 10 percent premium over the upper price band in the grey market, which is a forum for the purchasing and selling of IPO shares before the listing.
The company plans to utilize Rs 100 crore of the net fresh issue proceeds for its working capital requirements. Additionally, Rs 10 crore each will be utilized for repaying debts and purchasing new machinery, while the remaining fresh issue money will be kept for general corporate purposes.
Krystal will finalize the basis of allotment of IPO shares by March 19 and credit equity shares to the demat accounts of successful investors by March 20. Its equity shares will be available for trading on the BSE and NSE from March 21.
