scorecardDreamfolks Services IPO subscribed 56.68x on day 3 on strong institutional, retail investor demand
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Dreamfolks Services IPO subscribed 56.68x on day 3 on strong institutional, retail investor demand

Dreamfolks Services IPO subscribed 56.68x on day 3 on strong institutional, retail investor demand
Stock Market4 min read
  • The IPO DreamFolks Services has closed for subscriptions and received good response from institutional and retail investors.
  • The company intends to raise ₹560 crore and has set a price band of ₹308-326 per share.
  • The IPO is a complete offer for sale by promoters and shareholders.
  • Most analysts are bullish on the company and recommend subscribing to the IPO from a medium to long term perspective.
The IPO of DreamFolks Services closed today August 26 and has been subscribed 56.68 times over, on the last day of opening the issue.

The public issue of the airport services aggregator, opened on August 24 and was subscribed by 1.96 times on the very first day. Demand from retail investors has been robust from day 1.

However, demand from institutional investors picked up on the last two days of the IPO and is usually that way because they avoid blocking funds for more days.

Overall, 53.74 crore shares have been on bid as against 94.83 lakh shares available for allotment.
Investor category

Subscription as on August 26

Qualified Institutional Buyers (QIBs)

70.53 times

Non Institutional Investors(NIIS)

37.66 times

Retail

43.66 times

Total

56.68 times

The company set a price band of ₹308-326 per share. The shares of the company are currently commanding a grey market premium or GMP of ₹80 per share and have been increasing every day indicating a good listing gains.

GMP is the premium at which IPO shares are traded in an unofficial market before they are listed on the stock exchanges. The IPO opened on August 24, and will close on August 26.

Analysts bullish on DreamFolks
Most analysts have recommended subscribing to the IPO from a medium to long term perspective as DreamFolks is a dominant player in the airport service industry.

“The company enjoys over 95% market share in card-based lounge access with its asset light business model. While valuation based on FY22 looks stretched, the full business recovery will be visible from FY23,” said analysts at ICICI Direct Research.

ICICI Direct recommends a ‘subscribe’ as the company enjoys near monopoly in this segment.

“It has a strong business revenue potential over the next decade on the back of – healthy air traffic growth, increasing issuance of credit cards and better awareness of usage of cards for lounges and higher penetration from current low level of around 5%,” said brokerage Reliance Securities.
Brokerages

Recommendation

Angel One

Subscribe on the issue from a medium to long term perspective

SBI Capital Securities

Subscribe with a long term perspective.

Sushil Finance

Investors can invest for medium to long term horizon

Anand Rathi Securities

Subscribe for long term

Reliance Securities

Subscribe

Nirmal Bang Securities

Subscribe

K R Choksey

Subscribe

HEM Securities

Subscribe

Swastika Securities

Subscribe only for high risk investors

BP Equities

Subscribe

The company allocated 77.59 lakh shares to 18 anchor investors at the upper price band of ₹326 per share. Smallcap World Fund, a California-based venture capital firm, bought a large pie i.e 28.46% of the shares set aside for anchor investors.

DreamFolks Services provides access to airport services such as food and beverage offerings, spa services, ‘meet and assist’, airport transfer services, transit hotels, nap room access and baggage transfer.

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