Airport Service aggregator platform Dreamfolks Services Ltd’s three-day initial public offering (IPO),with a price band of ₹308- ₹326 apiece, has opened for public subscription today and the issue will conclude on Friday, August 26.
As of 1:45 pm on day 1 of the bidding, the issue has been fully subscribed 1.07 times with retail investors’ category over booked 5.32x and NIIs 0.38x, BSE data showed.
The company on Tuesday raised ₹253 crore from anchor investors ahead of its initial share-sale. The company has decided to allot 7.76 crore shares to anchor investors at a price of ₹326 apiece, aggregating the transaction size to ₹253 crore, according to a circular on BSE’s website.
Dreamfolks Services IPO is entirely an Offer For Sale (OFS) of up to 1.72 crore equity shares by promoters Liberatha Peter Kallat, Dinesh Nagpal and Mukesh Yadav. The public issue will constitute 33% of the post offer paid-up equity share capital of the company.
As per market observers, Dreamfolks Services shares are available at a premium (GMP) of ₹62 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Tuesday, September 6, 2022.
“We recommend Subscribe to this IPO on the following parameters: The company is profitable having no debt, travelling industry facing tailwinds post pandemic, the company has no private equity, the Valuation of company is high and it the only point of concern, the company has First Mover advantage as there is no such companies in India it’s peer are only present in China and UK,” said Jainam Broking in an IPO note.
DreamFolks facilitates an enhanced airport experience for passengers, leveraging its technology-driven platform and facilitates consumers’ access to airport-related services like lounges, food and beverages, spa, meet and assist airport transfer, transit hotels or nap room access, and baggage transfer services.
“The business model looks promising, however, the issue looks richly priced with an asking PE of 104.82x. Also, the issue is purely an OFS of over 32% shares which looks significantly higher. The Issue size, retail quota, primary market sentiments are the factors which should help the issue in garnering good subscription which may lead to a positive listing,” said Abhay Doshi, cofounder of Unlisted Arena.
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