DreamFolks Services IPO Last day to register: DreamFolks Services’ initial public offering (IPO) was booked 6.09 times to the second day of bidding and received strong support from retail investors. DreamFolks Services aims to raise Rs 562 crore, fully a sell offer, at the top end of the price range of Rs 308-326 per share through the issuance. The DreamFolks IPO closes on Friday, August 26. 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 and beverage, spa, meet and assist airport transfer, transit hotels, access to dormitories and baggage transfer services.
DreamFolks Services IPO: Subscription Status
The retail portion of DreamFolks Services IPO has been subscribed 19.1 times. The total size of the issue was reduced to 94.83 lakh shares from 1.72 crore shares after DreamFolks raised Rs 253 crore through its anchor book on August 23. Non-institutional investors have bid on 8.4 times the shares reserved for them, while the portion of qualified institutional buyers booked 60 percent.
DreamFolks Services IPO: IPO Details
Investors can bid for a minimum of 46 shares and thereafter in multiples of 46 shares. The public issuance of DreamFolks 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: appreciation
As far as valuations are concerned, the post-issue P/E comes in at 104.8x FY22 EPS (at the high end of the issue price band). However, the multiple appears to be higher, mainly due to lower profitability due to pandemic-induced issues, Angel One said.
DreamFolks Services IPO: GMP Today
According to market observers, the DreamFolks IPO Gray Market Premium (GMP) rose from Rs 60 to Rs 83 in just one day following a strong private investor reaction to the public offering. They said the mood in the secondary market has remained positive for the past two days and has also affected the gray market. However, stock market investors said that GMP is not an ideal indicator for quoted premium of a public issue, as it has nothing to do with the company’s financials.
DreamFolks Services IPO: Should You Subscribe?
Anand Rathi Securities signed it up for a long-term rating, saying the company’s unique (business-cum-customer) business proposition and ambitious brand image bodes well for the company in the long run. It was also the first move in space, gives the company an added advantage and puts it in a good spot.
ICICI Securities said the company’s valuation based on FY22 looks stretched, but the full business recovery will be visible from FY23.
“Given that the company has more than 95 percent market share in card-based lounge access with its asset-light business model and the monopolistic nature of the business and further growth potential in the air travel and credit card segment, the brokerage firm recommends to ‘SUBSCRIBE’ rating on the issue for listing gains,” it said in a note.
Read all Latest business news and Important news here