DreamFolks Services stock slips 8% from its listing price

• Shares of DreamFolks Services listed at ₹505 while the shares were allotted at ₹326 per share.
• However, shares of the company ended 8% down at ₹462.
• The company’s IPO received strong demand across the category of investors and it is one of the highest subscribed IPOs so far, in 2022.
• The market capitalisation of the company stood at ₹2,638 crore.

Shares of airport service aggregator, DreamFolks Services, which listed today ended 8% lower at ₹462 as compared to its listing price of ₹505 due to volatile market movements. The shares were allotted at ₹326 apiece.

Post-listing, the market capitalisation of the company stood at ₹2,638 crore, according to BSE data.

The IPO opened for subscription between August 24 to August 26 ⁠and was subscribed 3.53 times. The issue received good demand across the investor categories. It’s one of the highest subscribed IPOs so far in 2022. Retail investors had subscribed to the IPO by 43.66 times.

Overall, 53.74 crore shares have been on bid as against 94.83 lakh shares available for allotment.

As the stock opened, its listing gains stood at ₹176, a bit more than the grey market premium (GMP), which indicated a premium of ₹120.

Also, the strong listing gains were in line with analysts’ expectations who see the company’s dominant position in lounge access markets playing out a good growth story ahead.

“DreamFolks is a proxy play on the rising air travel in India and due to its first mover advantage and dominant position in the lounge access market, the company is poised to grow exponentially in the future. The issue had received a phenomenal response from investors and the subscription levels stood at 56.68 times. Additionally, GMP is 152 i.e. 46.63% over its listing price, thus indicating a promising and strong listing performance,” Aayush Agrawal, senior research analyst at Swastika Investmart.

The airport service aggregator began operations in 2013 facilitating airport lounge access services and has now become an end-to-end technology solutions provider. Covid restrictions have severely impacted the airport service provider’s financials however it is now recovering from the lows as the travel industry has picked up.

Further, the company believes that if the impact of Covid-19 is prolonged or more severe than anticipated, it may face a deleterious impact on its business as per its DRHP.


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