Krystal Integrated Services shares erase all listing gains. Should you hold or sell?

Analysts said the positive listing signifies some investor confidence in Krystal's comprehensive service offerings, diverse customer base, and strong financial track record.

"Krystal's decent listing offers a window of opportunity, but the associated risks necessitate a cautious approach. Investors are advised to take advantage of this listing and book their gains. However, those who still want to hold it may keep a stop loss at around 745," said Shivani Nyati, head of wealth at Swastika Investmart.

The issue received a decent response from the investors with an overall subscription of 12 times at close on strong interest from non-institutional investors.

Ahead of the IPO opening, the company had raised Rs 90.04 crore from 10 anchor investors, including BofA Securities, Aegis Investment Fund, PCC, Saint Capital Fund, among others.

The funds raised through the IPO will be utilised for repayment of debt, to meet working capital requirements, for capital expenditure as well as for general corporate purposes.

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Krystal Integrated Services has its focus on healthcare, education, public administration (state government entities, municipal bodies and other government offices), airports, railways and metro infrastructure, and retail sectors (Source: F&S Report).

It provides a comprehensive range of integrated facility management services across multiple sectors and consequently is among select companies in India that have a wide geographic presence and customer base, catering to almost all end-user segments.

The company boasts of a diverse customer base, a wide geographic presence, and a track record of strong financial performance. However, there are some key challenges which include reliance on a limited number of clients, particularly government contracts secured through bidding processes.

For FY23, the company's revenue from operations rose 28% year-on-year to Rs 708 crore. Net profit for the same period jumped 46% to Rs 38.4 crore.