DreamFolks Services IPO GMP, Subscription, Review; Should You Buy on Last Day?

DreamFolks Services IPO Last Day For Subscription: The initial public offering (IPO) of DreamFolks Services was booked 6.09 times till the second day of bidding, getting good support from retail investors. DreamFolks Services is looking to raise Rs 562 crore through the issue, entirely an offer for sale, at the upper end of the price band of Rs 308-326 a share. The DreamFolks IPO closes on Friday, August 26. 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.

DreamFolks Services IPO: Subscription Status

The retail portion of DreamFolks Services IPO has been subscribed 19.1 times. The total issue size 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 for 8.4 times shares set aside for them, while the qualified institutional buyers’ portion was booked 60 per cent.

DreamFolks Services IPO: IPO Details

Investors can make a bid of a minimum of 46 equity shares and in multiples of 46 equity shares thereafter. The DreamFolks public issue is proposed for listing on both NSE and BSE and the tentative DreamFolks IPO listing date is September 6, 2022.

The issue is entirely an offer for sale (OFS) of up to 1,72,42,368 equity shares with a face value of Rs 2 each by its promoters Liberatha Peter Kallat, Mukesh Yadav and Dinesh Nagpal.

DreamFolks Services IPO: Valuation

In terms of valuations, the post-issue P/E works out to 104.8x FY22 EPS (at the upper end of the issue price band). However, the multiple looks higher mainly due to lower profitability caused by pandemic-led issues, Angel One said.

DreamFolks Services IPO: GMP Today

According to market observers, after a strong response by retail investors to the public issue, DreamFolks IPO grey market premium (GMP) surged from Rs 60 to Rs 83 in just one day. They said that for the last two days, the secondary market mood has remained positive and it has influenced the grey market as well. However, stock market investors said that GMP is not an ideal indicator of listing premium from a public issue because it has nothing to do with the financials of the company.

DreamFolks Services IPO: Should you Subscribe?

Anand Rathi Securities giving it a subscribe for long-term rating, said the company’s unique (corporate-cum-customer) business proposition and aspirational brand image augurs well for the company in the long term. Also, it been the first move in the space, gives the company an added advantage and places it in a sweet spot.

ICICI Securities said, the company’s valuation based on FY22 looks stretched, but the full business recovery shall be visible from FY23.

“Given the fact that the company enjoys over 95 per cent market share in card-based lounge access with its asset-light business model and the monopolistic nature of business and further growth potential in the air travel and credit card segment, the brokerage firm recommends ‘SUBSCRIBE’ rating on the issue for listing gains,” it said in a note.

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