DreamFolks Services IPO opens today: As the primary markets are aligned with DreamFolks Services’ first public offering, which is expected to take place on Dalal Street on Wednesday, August 24. day initial public offering (IPO). The issue will close on Friday, August 26. The bids for anchor investors were to open on Wednesday.
DreamFolks Services IPO: Price Band
According to the BSE website, the Dreamfolks IPO price band is set at Rs 308 to Rs 326 per share share.
The company raised Rs 253 crore from anchor investors on Tuesday ahead of its first share sale. The company has decided to allocate 7.76 crore shares to investors at a price of Rs 326 each, aggregating the transaction size to Rs 253 crore, according to a circular on BSE’s website.
DreamFolks Services IPO: lot size
Investors can bid on a minimum of 46 shares, and then in multiples. Up to 75 percent of the total offering is reserved for qualified institutional buyers and 15 percent for non-institutional investors. The remaining 10 percent will be allocated to private investors. The company will not receive any proceeds from the offer.
DreamFolks Services IPO: Share Assignment and Mention
The tentative date for the allocation of Dreamfolks IPO is September 1, 2022. The public offering is proposed for listing on both NSE and BSE. The provisional IPO date is September 6, 2022.
DreamFolks Services IPO: Financials
As of March 31, 2022, Dreamforks had 50 customers, including the card networks and many of India’s prominent card issuers. As of March 31, 2022, a total of 9.79 million Paxes had used their services since Fiscal 2020.
Aayush Agrawal, Senior Research Analyst, Swastika Investmart, said that despite its asset-light operations, the company has witnessed volatile cash flows due to high receivables.
DreamFolks Services IPO: GMP
According to market observers, Dreamfolks Services shares are currently available at a premium (GMP) of Rs 62 in the gray market.
DreamFolks Services IPO: Should You Invest?
“We recommend subscribing to this IPO based on the following parameters: the company is profitable with no debt, the travel industry is facing a tailwind after the pandemic, the company has no private equity, the company’s valuation is high and it is the only concern, the company has First Mover advantage as there are no such companies in India, its peers are only present in China and UK,” said Jainam Broking in an IPO note.
Angel One said in its IPO note: “In valuation terms, 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 higher, mainly due to lower profitability due to of pandemic-led industry-wide issues. DFSL has a 95 percent market share and an early mover advantage in the segment. It is a low-asset business model favored by air travelers. Furthermore, DFSL has focused on diversifying and expanding its portfolio of services, so we have a SUBSCRIBE rating on this matter from a medium to long term perspective.
DreamFolks facilitates an enhanced airport experience for passengers, leveraging the technology-driven platform. The company’s asset-light business model integrates global and domestic networks, credit and debit card issuers and other corporate customers, including airlines, with various airport lounge operators and other airport-related service providers on a unified technology platform.
Equirus Capital and Motilal Oswal Investment Advisors are the lead managers on the public issue. Link Intime India Private Ltd is the registrar of the first share sale.
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