The initial public offering (IPO) of facilities management services provider Krystal Integrated Services has garnered healthy interest from investors on the final day of bidding, i.e. March 18 despite volatility in the equity markets.
The public issue has been subscribed 13.21 times with investors buying 3.96 crore equity shares against an IPO size of 29.99 lakh equity shares, according to the subscription data from the exchanges.
Non-institutional investors (high networth individuals) led the major support to the issue picking 43.91 times the allotted quota, while qualified institutional buyers bid 7.33 times the reserved portion and retail investors bought 3.32 times the part set aside for them.
The Mumbai-based company launched its maiden public issue on March 14 to raise Rs 300.13 crore, which comprised 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.
The price band for the public issue was Rs 680-715 per share.
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Krystal Integrated Services mopped up Rs 90.04 crore out of the total IPO size, through its anchor book, at the upper price band. ITI Flexi Cap Fund, Quant Business Cycle Fund, BofA Securities Europe, Saint Capital Fund, Aegis Investment Fund and Zeal Global Opportunities Fund were among the 10 institutional investors that participated in the anchor book.
The company will spend Rs 100 crore of the net fresh issue proceeds for its working capital requirements. Further, Rs 10 crore each will be utilised for repaying debts and purchase of new machinery. The balance fresh issue money will be kept for general corporate purposes.
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Krystal will finalise the basis of allotment of IPO shares by March 19 and will 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.
The Krystal Integrated Services IPO shares traded at around a 10 percent premium over the upper price band in the grey market, observers said. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.
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