DreamFolks Services IPO: Shares Debut With 56 Per Cent Premium Over Issue Price

DreamFolks Services’ Rs 562-crore Initial Public Offer (IPO) was subscribed 56.68 times during August 24-26

DreamFolks Services, airport service aggregator platform, made its market debut on Tuesday with a premium of 56 per cent against the issue price of Rs 326. According to reports, the listing was better than analysts’ expectations and grey market premium of 30-40 per cent.

The stock was listed at Rs 505, clocking a jump of 54.90 per cent from the issue price on the BSE. It further rallied 68.71 per cent to Rs 550. On the NSE, the company made its debut at Rs 508.70, a rise of 56 per cent.

DreamFolks Services’ Rs 562-crore Initial Public Offer (IPO) was subscribed 56.68 times during August 24-26. The IPO was entirely an Offer-For-Sale (OFS) of 1,72,42,368 equity shares. The price band for the offer was Rs 308-326 per share.

The issue garnered bids for 53.74 crore equity shares against an offer size of 94.83 lakh shares.

Qualified institutional investors (QIIs) took the lead, buying shares 70.53 times the allotted quota. The portion set aside for non-institutional investors was subscribed 37.66 times and retail investors put in bids 43.66 times the shares reserved for them.

Healthy IPO subscription, positive market conditions, leadership in airport lounge aggregation industry, and asset light business model boosted investor confidence.

Most analysts had a subscribe rating on the issue, citing significant market share and early mover advantage in the segment.

DreamFolks Services is a dominant player and India's largest airport service aggregator platform. It facilitates consumers’ access to airport-related services like lounges, food and beverages, spa, meet and assist airport transfer, transit hotels or nap rooms, and baggage transfer services.

As of March 2022, it has coverage across 54 operational airport lounges constituting 100 per cent of airport lounges in India. The company has tie-ups with all the five card networks operating in India, including Visa, Master Card, Diners/Discover, and RuPay, according to news reports.