AgenciesDespite a sharp selloff in the broader markets, shares of DreamFolks Services remain unperturbed in the grey market.
DreamFolks Services, whose IPO concluded on Friday, is commanding an astounding premium of Rs 110-115 per share in the unofficial market over its prescribed price band.
Analysts tracking the issue said that a rebound in primary market sentiments, robust gains by Syrma SGS Technology on listing and a strong business model are behind the strong demand for DreamFolks shares.
Abhay Doshi, Founders, UnlistedArena said the grey market premium has improved significantly following strong listing of Syrma SGS Technology and improved sentiments for the IPO market among traders.
"The company has a platform business, which will enjoy a higher P/E despite rich valuations," he added. "Allottees are expected to make strong listing gains on debut."
The issue was heavily subscribed across all categories, fetching an overall subscription of 56.68 times. QIB quota fetched 70.5 times bids, whereas the NII portion was subscribed 37.66 times. Retailers' allocation got 43.66 times bids.
The airport service aggregator platform sold its share through initial stake sale in the range of Rs 308-326 apiece between August 24-26 to raise Rs 562.10 crore.
Aastha Jain, Senior Research Analyst, Hem Securities, said that the company has a strong business model with a robust moat. It holds almost a monopoly status with no major competition in the near term.
"We have suggested subscribing to the issue for both listing gains and long-term prospects on the back of its strong growth prospects and consistent track record of delivering profits," she added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
DreamFolks Services, whose IPO concluded on Friday, is commanding an astounding premium of Rs 110-115 per share in the unofficial market over its prescribed price band.
Analysts tracking the issue said that a rebound in primary market sentiments, robust gains by Syrma SGS Technology on listing and a strong business model are behind the strong demand for DreamFolks shares.
Abhay Doshi, Founders, UnlistedArena said the grey market premium has improved significantly following strong listing of Syrma SGS Technology and improved sentiments for the IPO market among traders.
"The company has a platform business, which will enjoy a higher P/E despite rich valuations," he added. "Allottees are expected to make strong listing gains on debut."
The issue was heavily subscribed across all categories, fetching an overall subscription of 56.68 times. QIB quota fetched 70.5 times bids, whereas the NII portion was subscribed 37.66 times. Retailers' allocation got 43.66 times bids.
The airport service aggregator platform sold its share through initial stake sale in the range of Rs 308-326 apiece between August 24-26 to raise Rs 562.10 crore.
Aastha Jain, Senior Research Analyst, Hem Securities, said that the company has a strong business model with a robust moat. It holds almost a monopoly status with no major competition in the near term.
"We have suggested subscribing to the issue for both listing gains and long-term prospects on the back of its strong growth prospects and consistent track record of delivering profits," she added.
(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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