Krystal Integrated Services shares tank 9% after positive debut; should you hold or exit the stock?

Shares of Krystal Integrated Services Ltd made a decent debut at Dalal Street on Thursday. However, the company failed to keep the momentum going on and saw profit booking after better-than-expected listings. Interestingly, the company did not breach its issue price despite heavy selling.

Krystal Integrated Services' shares were listed at Rs 795, a premium of 11 per cent, on the BSE, while the stock debuted at a premium of 10 per cent at Rs 785 on NSE over the issue price of Rs 715. However, the stock tumbled 9.4 per cent for the day to Rs 720 on the back of profit booking and puzzled investors if they should buy the stock or exit the debutante.

Investors tracking the stock said that one can keep the stock for a longer run in their portfolio, but short term investors should maintain stop-loss to avoid capital erosion. However, they are positive on the company from the long-term perspective, giving it a thumbs up.[

Krystal Integrated Services, a provider of facility management services, witnessed a decent debut on the stock market. The positive listing signifies some investor confidence in Krystal's comprehensive service offerings, diverse customer base, and strong financial track record, said Shivani Nyati, head of wealth at Swastika Investmart.

"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 Rs 745," she said.

The overall subscription for the IPO came in at over 13.2 times the offered shares. Qualified institutional bidders (QIBs) subscribed 7.33 times, while non-institutional investors showed keen interest, subscribing 43.91 times. Retail investors also participated, bidding 3.32 times during the three-day offering period.

Established in December 2000, Mumbai-based Krystal Integrated Services specializes in facilities management services, offering a diverse portfolio including housekeeping, sanitation, landscaping, gardening, mechanical, electrical, and plumbing services, waste management, pest control, façade cleaning, among others.

Krystal Integrated Systems made a positive debut at the bourses. The company is a key solutions provider to the government sector; the company has a track record of executing large contracts. The company has a competitive advantage in the market as management services require an immense level of expertise, trust, and quality in service provision, said Parth Shah, Research Analyst at StoxBox

"The company emerges as a one-stop solution to cater to the market in the coming years, filling the gap of such a growing demand. Hence, maintaining a positive outlook towards the company, we recommend the market participants who have been allotted the shares of the company to hold them for a medium to long-term horizon," he said.
 

Incorporated in December 2000, Mumbai-based Krystal Integrated Services specializes in facilities management services, offering a diverse portfolio. Inga Ventures acts as the exclusive book running lead manager for the Krystal Integrated Services IPO, with Link Intime India serving as the registrar for the issue.