DreamFolks IPO makes strong debut, stock zooms 56% over issue price

India's largest airport service aggregator DreamFolks Services Ltd debuted on the stock market on September 6, 2022, at a premium of 56%. Though the IPO price range was Rs 308 to Rs 326, the stock listed on the NSE and BSE at a price of Rs 508 and 505 respectively. 

What is the reason for the strong listing?

DreamFolks is an airport service aggregator company that provides a host of services that makes your airport experience travel-worthy. It started off in 2013 by facilitating lounge access services for consumers of Mastercard but now provides services to all the card networks operating in India. 

As per Aayush Agrawal, Senior Research Analyst, Swastika Investmart Ltd and Manoj Dalmia, the Founder and Director of Proficient Equities Limited, DreamFolks Ltd. has the following advantages:

• DreamFolks Services is a proxy play on the rising air travel in India and country’s largest airport service aggregator platform.
• The company has a first mover advantage and a dominant position in the lounge access market.
• The company is poised to grow exponentially in the future.
• Its business model is unique, asset-light and capital-efficient since it provides services to all the card networks operating in India including Visa, Mastercard, Diners/Discover and RuPay. 

What happened after the IPO process ended? 

The Rs 560 crore DreamFolks Services IPO was open for subscription between August 24 and 26, 2022 for a price range of Rs 308 to Rs 326. Even though 94.8 lakh shares were offered for issue by the company, DreamFolks received bids to buy 53.7 crore shares from prospective buyers, thus indicating a 56.7 time over subscription to the offer. By the end of the IPO process, the IPO was fully subscribed within hours of opening on August 24, ending the day with 1.96 times subscription. The quota for retail investors (RIIs) was subscribed 43.66 times, the category for non-institutional investors 37.66 times and the portion for qualified institutional buyers (QIBs) 70.53 times.

What happened on the day of the stock market listing?

On the NSE: The DreamFolks stocks began its journey at a 56% premium at Rs 508.7 a piece as against the IPO price range of Rs 308-326.

On the BSE: DreamFolks stocks began trading at Rs 505 a piece, with a premium of 54.9% as against the IPO price.