DreamFolks Services IPO Day 2: DreamFolks Services IPO was fully subscribed to the subscription within hours of opening. DreamFolks Services’ Rs 562 crore initial public offering (IPO) opened for subscription on Wednesday, August 24. You can subscribe to the number until August 26 (Friday). DreamFolks facilitates an enhanced airport experience for passengers, leveraging the technology-driven platform and facilitating consumer access to airport related services such as lounges, food & beverage, spa, meet & assist airport transfer, transit hotels or access to sleeping quarters and baggage transfer services.
DreamFolks Services IPO: Subscription Status
After the first day of bidding, the DreamFolks IPO subscription status will let you know that the public issue has been subscribed 1.96 times, while the retail portion has been subscribed 7.93 times.
DreamFolks Services IPO: IPO Details
Investors can bid for a minimum of 46 shares and thereafter in multiples of 46 shares. The public issuance is proposed for listing on both NSE and BSE and the tentative date of DreamFolks IPO listing is September 6, 2022.
The issuance is entirely an offer for sale (OFS) of up to 1,72.42,368 shares with a nominal value of Rs 2 each by the promoters Liberatha Peter Kallat, Mukesh Yadav and Dinesh Nagpal.
DreamFolks Services IPO: Key Risks
Choice Broking listed in its IPO note some risk factors that could affect the company. The first is unfavorable government policies and regulations.
It also said the slow expansion of the airport network and lower access to lounges is not positive for the company.
Furthermore, the company must watch out for difficulties in expanding its global business, risk of revenue concentration, difficulties in continuing relations with the card network and lounge operators, and competition from colleagues.
DreamFolks Services IPO: strength
“According to the F&S report, DreamFolks dominates the market with a share of more than 95 percent in FY22 of all card-based access to domestic lounges issued by India. The company has 50 customers, including card networks and major card issuers, and 9.8 million end customers have used its services since FY20. It is also a strong player in the sector with over 80 percent share of the domestic lounge access market in India,” said Reliance Securities.
DreamFolks Services IPO: GMP Today
According to the market observers, shares of DreamFolks Services Ltd are available today at a premium of Rs 83 in the gray market. DreamFolks IPO Gray Market Premium (GMP) rose from Rs 60 to Rs 83 in just one day. They said the mood in the secondary market has remained positive for the past two days and has also impacted the gray market. However, the most dominant reason for the sharp upward move in Dreamfolk’s IPO GMP today is the strong response from retail investors on day one. They said the gray market premium could rise further as market sentiment is expected to remain positive in the near term.
DreamFolks Services IPO: Should You Subscribe?
Reliance Securities gives ‘subscribe’ tag to the public issue, saying: “DreamFolks Services Ltd has strong potential for business revenue over the next decade thanks to a) healthy air traffic growth, b) increasing credit card issuance and c) better awareness of the use of cards for lounges and increased penetration from the current low of 5 percent In view of a strong business moat, a healthy recovery of air passenger traffic, an increase in Lounge services, multiple revenue growth potential, a unique asset light and an efficient business model, we recommend SUBSCRIBE to the issue.”
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