DreamFolks Services IPO Review, Last Day To Subscribe

The initial public offering (IPO) of DreamFolks Services has been booked 6.09 times till the 2nd day (25th August) of bidding, getting decent support from retail investors.

With the issuance, which is fully an offer for sale, DreamFolks Services hopes to generate Rs 562 crore at the higher end of the Rs 308–326 per share price range. On August 26, the DreamFolks IPO concluded. 

Using its technology-driven platform, DreamFolks enables consumers’ access to airport-related services such as lounges, food and beverage, spa, meet & assistance airport transfer, transit hotels, or nap room accessibility, and baggage transfer services, enhancing the travel experience for passengers.

Subscription Status of DreamFolks Services IPO

The DreamFolks Services IPO’s retail segment has received 19.1 times as much interest. Following DreamFolks’ August 23 anchor book raising of Rs 253 crore, the issue size was decreased from 1.72 crore shares to 94.83 lakh shares. 

While qualified institutional purchasers booked 60% of the available shares, non-institutional investors bid for 8.4 times that amount.

IPO Details of DreamFolks Services IPO

Investors may place a minimum bid of 46 equity shares and a maximum bid in multiples of 46 equity shares. 

The proposed NSE and BSE listing dates for the DreamFolks public offering are September 6 and September 7, respectively.

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The offering is fully an offer for sale (OFS) by the issue’s promoters, Liberatha Peter Kallat, Mukesh Yadav, and Dinesh Nagpal, of up to 1,72,42,368 equity shares with a face worth ₹ 2 each.

Valuation of DreamFolks Services IPO

For valuation purposes, the post-issue P/E is 104.8x FY22 EPS (at the upper end of the issue price band). 

According to Angel One, the poorer profitability brought on by pandemic-related problems is the key reason why the multiple appears greater.

GMP Today of DreamFolks Services IPO

Market watchers claim that DreamFolks’ initial public offering’s (IPO) gray market premium (GMP) increased from Rs 60 to Rs 83 in only one day as a result of the public offering’s favorable reception from retail investors. 

They claimed that the secondary market has been in a good mood for the past two days, which has affected the gray market too though. 

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However, because GMP has nothing to do with the company’s finances, stock market investors claim that it is not the key predictor of listing premium from a public issue.

Should You Subscribe DreamFolks Services IPO?

The unusual (corporate-cum-customer) business proposition plus aspirational brand image of the company, according to Anand Rathi Securities, bode well for the company in the long run. 

Additionally, the fact that it was the first move in the area provides the business an edge and puts it in a favorable location.

The company’s valuation based on FY22 appears stretched, according to ICICI Securities, although the entire business recovery will be evident from FY23.

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“Given the monopolistic nature of business, the company’s asset-light business model, and the further potential growth in the air travel as well as credit card sector, the brokerage firm recommends ‘SUBSCRIBE’ score on the issue for listing gains,” it said in a note. “The company enjoys over 95% market share in card-based lounge access.”