IPO of DreamFolks Services today: Shares of Dreamfolks Services, the country’s largest airport services aggregation platform, will debut on Dalal Street on Tuesday. Shares of Dreamfolks will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) at 10 a.m. on September 6. The company launched its initial public offering (IPO) of almost Rs562 crore from August 24-26 and is in demand across all categories of investors. The IPO had subscribed by 56.68 times. Currently, the DreamFolks IPO (GMP) gray market premium is around Rs 105.
The retail investor (RII) share was subscribed 43.66 times, the non-institutional investor category 37.66 times and the qualified institutional buyers (QIB) share 70.53 times. The IPO was fully subscribed within hours of its opening on Wednesday, ending the day with 1.96x subscription.
The issue, entirely a put offer, is sized at Rs 562 crore at the upper end of the price range of Rs 308-326 per share.
The lot size of Dreamfolks Services IPO was 46 shares for which one would have to spend Rs 14,996. An individual retail investor could submit bids for up to 13 lots or 598 shares by spending Rs 1,94,948. Equirus Capital Private Limited and Motilal Oswal Investment Advisors Pvt Ltd were the lead IPO managers.
DreamFolks Services IPO GMP before listing:
According to market watchers, DreamFolks shares are available at a premium of Rs 110 in the gray market today. However, market experts estimate that the DreamFolks stock quote would be around Rs 400 apiece. However, stock market experts have argued that GMP is not an ideal indicator of the listing premium that can be expected from a public offering. They said that GMP has nothing to do with the company’s balance sheet, so it shouldn’t be blindly relied upon. They advised candidates to rely on the company’s balance sheet because it gives a concrete fundamental picture of the public issue.
Expectation of DreamFolks Services IPO today:
Aayush Agrawal, Senior Research Analyst, Swastika Investmart Ltd., said, “DreamFolks Ltd. is a proxy play on increasing air travel in India and due to its first mover advantage and dominant position in the lounge access market, the company is poised to grow exponentially to the future. The issue received a phenomenal response from investors and subscription levels stood at 56.68x. Additionally, GMP is 152, or 46.63% above its listing price, indicating a promising and strong listing performance.
Manoj Dalmia, Founder and Director of Proficient Equities Limited, said, “DreamFolks is a dominant player and the largest airport services aggregation platform in India, an industry incubator with its unique, lightweight business model. active and capital efficient. DreamFolks provides services to all card networks operating in India including Visa, Mastercard, Diners/Discover and RuPay. However, due to the pandemic scare, it has suffered a decline in revenue at the PAT level for FY21 and for this reason it is only offering 10% to retail investors. Investors can buy this from a medium to long-term perspective by looking at total subscription, the issue could get listing gains where investors can book short-term gains. The estimated registration price could be around Rs 408 to Rs 428.”
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