DreamFolks Services IPO Day 2 Updates: DreamFolks Services IPO sailed through so far on the second day of sale with retail investors leading the subscription tally. The Rs 562 crore IPO opened for subscription on Wednesday after having raised Rs 252.9 crore from 18 anchor investors. The public issue saw massive interest from retail investors who have oversubscribed their portion of the initial public offering. Demand from Non-Institutional Investors (NII), and qualified institutional buyers (QIB) was decent. The issue will remain open for investors to bid, till Friday, 26 August 2022. Investors can bid in the fixed price band of Rs 308-326 per share.
So far on the second day of subscription, retail investors have bid for their portion 18.51 times. Bids have come in for 3,19,14,018 equity shares against the 17,24,236 equity shares offered to retail investors. NII portion of DreamFolks IPO received bids for 1,94,29,894 equity shares, which is 7.51 times the 25,86,355 equity shares that are offered. QIB portion garnered 30,64,382 bids. Overall the issue has been subscribed 5.74 times so far.
The DreamFolks IPO is entirely an Offer For Sale (OFS) by existing shareholders, hence the company will not get funds from the IPO. DreamFolks is an airport service aggregator that provides services such as Lounge Access, Food & Beverage offerings, Spa Services, and much more to travellers. The asset-light model of the company is seen as a positive, however, any disruption to air traffic in the country could be a major threat to DreamFolks.
DreamFolks’ 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, Axis Bank, Kotak Mahindra Bank, HDFC Bank and SBI Cards. Analysts at ICICI Direct Research said that DreamFolks is the largest and dominant airport lounge access provider in India. Its dominant position is underpinned by its estimated market share of over 95% of all India issued card based access to domestic lounges in India. Moreover, it has coverage across 54 operational airport lounges constituting 100% of airport lounges in India.
DreamFolks has planned to replicate its deep knowledge of the industry, technology innovation, process expertise and business model across new high growth markets/sectors. ICICI Direct Research has recommended to subscribe to the issue as the company enjoys over 95% market share in card based lounge access with its asset light business model. “While valuation based on FY22 looks stretched, the full business recovery will be visible from FY23. Given the monopolistic nature of business and further growth potential in the air travel and credit card segment, we recommend subscribe to this issue for listing gains,” it said.