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DreamFolks Services IPO: The initial public offering (IPO) of DreamFolks Services Ltd opened for subscription on 24th August 2022 and it's subscription ended today. The 562.10 crore subscription has received strong response from the investors ever since it opened for bidding. 

DreamFolks IPO subscription status

As per the information at DreamFolks Services IPO subscription status, on day 3 of bidding by 5 PM, the public issue has been subscribed 56 times whereas its retail portion has been subscribed 43 times. Following strong response from the retail investors, grey market has gone highly bullish on the public issue. According to market observers, shares of DreamFolks Services are available at a premium of 105 in grey market today. The Qualified Institutional Buyers segment saw 70 times oversubscription. 

DreamFolks IPO GMP today

Market observers said that DreamFolks IPO GMP (grey market premium) today is 105, which is 22 higher from its Thursday's GMP of 83. They said that DreamFolks IPO receiving strong response from retail investors has helped gain bulls attraction in the grey market despite weakness in the secondary markets. They said that after expiry of August series, market mood is expected to become strong and in that case, the public issue is expected to gain strength in both grey market and the primary market.

What this GMP means?

Market observers said that DreamFolks Services IPO GMP today is 105, which means grey market is expecting that DreamFolks Services IPO listing would take place around 431 ( 326 + 105), which is around 32 per cent higher from its price band of 308 to 326 per equity share. They said that grey market is signaling that DreamFolks Services shares may have a strong listing and allottees may get more than 30 per cent listing premium from the public issue on its debut on Dalal Street.

However, stock market experts maintained that GMP is not an ideal indicator about expected listing premium from an IPO. They said that its financials of the company that matters and one should rely on the balance sheet of the company as it gives long-term fundamental outlook of the company.

DreamFolks Services IPO: Apply or not?

Highlighting the fundamentals of DreamFolks Services IPO, HDFC Securities retail research report says, "began effective operations in 2013 by facilitating lounge access services for the Consumers of Mastercard and, currently, provides services to all the Card Networks operating in India including Visa, Mastercard, Diners/Discover and RuPay, and many of India’s prominent Card Issuers including ICICI Bank Limited, Axis Bank Limited, Kotak Mahindra Bank Limited, HDFC Bank Limited (in respect of debit card lounge program) and SBI Cards and Payment Services Limited. Over the years, it has transformed from being an airport lounge access aggregator to an end-to-end technology solutions provider for designing and delivering services that enhance the airport experience. It has crafted its service proposition to provide Clients the option of offering a wide-ranging bouquet of Services to the Consumers. Currently, it facilitates Consumers’ access to a host of services: from door-step to the airport, within the airport, and again from the airport to the door-step at the destination. The Company’s first mover advantage in the lounge access aggregator industry in India has enabled it to become a dominant player in the industry with a share of over 80% in the domestic lounge access market in India."

Naveen Kulkarni, Chief Investment Officer at Axis Securities said, “DreamFolks Services Ltd is India’s largest airport service aggregator, facilitating a wide range of Airport services. The company enjoys strong market leadership in the space with an asset-light business model backed by a strong focus on a proprietary technology platform, making a differentiating factor in maintaining strong relationships with key clients. The company may expand into railway lounges in the future and might gain the first mover advantage. The company is well poised for growth opportunities as the services economy has recovered sharply in Q1FY23. The services sector is likely to do better in upcoming quarters."

Giving 'subscribe' tag to the public issue, Reliance Securities says, "DreamFolks Services Ltd has a strong business revenue potential over next decade on the back of a) Healthy air traffic growth, b) Increasing issuance of credit cards and c) Better awareness of usage of cards for lounges and higher penetration from current low level of ~5%. In view of strong business moat, healthy recovery in Air Passenger traffic, increase Lounge services, multi-fold revenue growth potential, unique asset light and efficient business model, we recommend SUBSCRIBE to the issue."

DreamFolks IPO details

Most tentative DreamFolks IPO allotment date is 1st September 2022. The public issue is proposed for listing on both NSE and BSE and tentative DreamFolks IPO listing date is 6th September 2022. The issue is 100 per cent OFS in nature.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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Asit Manohar

Chief Content Producer at Live Mint Digital Team
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