DreamFolks Services lists at 56% premium over issue price

DreamFolks Services lists at 56% premium over issue price

NEW DELHI: DreamFolks Services made a solid market debut on Tuesday, as the scrip got listed at Rs 508.70 on NSE, up 56.04 per cent over its issue price of Rs 326. The scrip debuted at Rs 505 on BSE, up 54.91 per cent.

The stock extended gains on NSE to touch day’s high of Rs 549, translating into a premium of 68 per cent over IPO price.

The scrip commanded a healthy grey market premium of Rs 140-150, a day ahead of its listing.

This listing pop beat Syrma SGS Technology’s recent listing gain of 19 per cent. Syrma, which got listed on August 26, had ended the listing day up 42 per cent.

DreamFolks Services IPO was open between August 24 and August 26. The Rs 562-crore issue was subscribed a solid 56.68 times, with the qualified institutional investor quota getting subscribed by 70.53 times, NII quota by 37.66 times and retail quota by 43.66 times.

The main business model of DreamFolks is to act as a service provider between the lounge operators on one side, and banks, card networks, airlines and corporates on the other end. DreamFolks acts as a vital link for banks for their credit & debit card sales and customer engagement programs, and for airlines to manage customer loyalty and retention. It facilitates access to 100 per cent of the 54 lounges currently operational in India, and also enjoyed a market share of over 95 per cent of all India-issued credit card and debit card access to airport lounges in FY2022.

Brokerages had a positive view of the company. At the upper price band of IPO, the stock at Rs 326 was demanding an FY22 P/E of 104.8 times. Angel One said the multiple looked higher mainly due to lower profitability caused by pandemic-led industry-wide issues. The brokerage had a subscribe rating on the stock.

It is expected to benefit from its leading position and the upcoming growth opportunities in the aviation sector.

(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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