Dreamfolks Services IPO subscribed 56.68x on day 3 on strong demand from institutional and retail investors

  • The DreamFolks Services IPO has closed for subscriptions and received a good response from institutional and retail investors.
  • The company intends to raise ₹560 crore and has set a price range of ₹308-326 per share.
  • The IPO is a comprehensive offering for sale by promoters and shareholders.
  • Most analysts are optimistic about the company and recommend investing in the IPO from a medium to long-term perspective.

The DreamFolks Services IPO closed today August 26th and was subscribed 56.68 times, the last day the issue opened.

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

However, demand from institutional investors picked up in the last two days of the IPO and it is usually so as they avoid locking up funds for more days.

Overall, 53.74 crore shares were offered against 94.83 lakh shares available for allotment.

Investor category Subscription on August 26
Qualified Institutional Buyers (QIB) 70.53 times
Non-Institutional Investors (NIIS) 37.66 times
Detail 43.66 times
Total 56.68 times

The company has set a price range of ₹308-326 per share. Shares of the company currently command a gray market or GMP premium of ₹80 per share and have been rising daily, indicating good listing gains.

GMP is the premium at which IPO shares are traded on an unofficial market before being listed on a stock exchange. The IPO opened on August 24 and will close on August 26.

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

“The company has over 95% market share in card-based lounge access thanks to its lean business model. While the FY22-based valuation looks stretched, the full recovery in activity will be visible from FY23,” analysts at ICICI Direct Research said.

ICICI Direct recommends a “subscription” as the company enjoys a virtual monopoly in this segment.

“It has strong commercial revenue potential over the next decade through – healthy growth in air traffic, increased credit card issuance and improved awareness of card usage for lounges and a higher penetration from the current low level of around 5%,” Reliance Securities brokerage said.

Brokerages Recommendation
angel one Subscribe on the issue from a medium and long term perspective
SBI Capital Securities Subscribe with a long-term perspective.
Sushil Finance Investors can invest for the medium to long term
Anand Rathi Titles Subscribe long term
Credentials Subscribe
Nirmal Bang Securities Subscribe
KR Choksey Subscribe
HEM titles Subscribe
Swastika Titles Subscribe only for high risk investors
BP-Shares Subscribe

The company has allotted 77.59 lakh shares to 18 core investors in the upper price range of ₹326 per share. Smallcap World Fund, a California-based venture capital firm, bought a big pie, i.e. 28.46% of the shares reserved for core investors. , airport transfer services, transit hotels, access to the siesta room and baggage transfer.

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