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dreamfolks ipo subscription status: DreamFolks IPO subscribed 72% so far on Day 1; retail portion booked 3.7x

New Delhi: The initial public offering (IPO) of DreamFolks Services received a strong response from retail investors during initial couple of hours on the first day of the bidding process on Wednesday.

The issue can be subscribed till Friday, August 26. The company is selling its shares in the range of Rs 308-326 apiece to raise Rs 562 crore through its initial stake sale.

According to the data from BSE, the investors made bids for 67,92,590 equity shares or 72 per cent compared to the 94,83,302 equity shares offered for the subscription by 12.00 noon Wednesday, August 24.

The quota for retail bidders was subscribed 3.7 times, whereas the allocation for HNI investors fetched 16 per cent bidding. The quota for institutional investors did not garner any bids yet.

The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15 per cent allocation. Retail bidders will get only 10 per cent allocation.

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.

The majority of the brokerages remain positive on the issue due to its asset-light model and growth prospects. However, a few of them suggest that the issue is aggressively priced and investors should bid for it with a long-term view only.

“The company is a dominant player in the airport lounge aggregation industry in India with strong tailwinds. It has a strong business moat due to the flywheel effect led by clients and operators network,” said Hem Securities with a subscribe rating.

DreamFolks has a strong business revenue potential over the next decade on the back of healthy air traffic growth, increasing issuance of credit cards, better awareness of usage of cards for lounges and higher penetration from current low levels, said

Securities. It recommended subscribing to the issue.

Dreamfolks Services raised Rs 253 crore from anchor investors ahead of its IPO as it allotted 7.76 crore shares to anchor investors at a price of Rs 326 apiece, aggregating the transaction size to Rs 253 crore, according to a circular on BSE.

Societe Generale,

Arbitrage, Saint Capital, Segantii India Mauritius, Kuber India Fund, Smallcap World Fund, Aditya Birla Sun Life, Mutual Fund, Quant Mutual Fund and Metlife India Insurance are among the anchor investors.

Equirus Capital and

Investment Advisors are the book-running lead managers to the offer, whereas Link Intime India is the registrar to the issue. Shares of the company will list on both BSE and NSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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