DreamFolks Services IPO: GMP signals strong listing. Should you subscribe?
Premium- DreamFolks IPO GMP today is ₹88, say market observers
DreamFolks Services IPO: The initial public offering (IPO) of DreamFolks Services Ltd opened for subscription on 24th August 2022 and it's subscription is going to end today. So, interested investors have just one day left in their hand to apply for the public issue worth ₹562.10 crore. The public offer has received strong response from the retail investors in first two days of bidding.
DreamFolks IPO subscription status
As per the information at DreamFolks Services IPO subscription status, the public issue has been subscribed 6.09 times after two days of bidding whereas its retail portion has been subscribed 19.10 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 ₹88 in grey market today.
DreamFolks IPO GMP today
Market observers said that DreamFolks IPO GMP (grey market premium) today is ₹88, which is ₹5 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 ₹88, which means grey market is expecting that DreamFolks Services IPO listing would take place around ₹414 ( ₹326 + ₹88), which is around 27 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 25 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."
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.
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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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