Country’s largest airport service aggregator platform, Dreamfolx Services will make its debut on the stock exchanges on Tuesday. The company launched its initial public offering (IPO) of around Rs 562 crore from August 24 to August 26 and garnered strong demand among investor categories. The IPO was subscribed 56.68 times. Currently, Dreamfolks IPO Gray Market Premium (GMP) is approx. 105.
In its statement on Monday, NSE said, DreamFolks Services will be listed and admitted for transactions on the exchange from September 6. Trading will be normal. market Section – Mandatory Demat (Rolling Settlement) for all investors.
IPO Includes an offer for sale (OFS) where the promoters of the company sold 1,72,42,368 equity shares. The promoters are Libertha Peter Kalat, Dinesh Nagpal and Mukesh Yadav. The price band of IPO was from 308 326 per equity share.
The IPO was subscribed 56.68 times. Qualified Institutional Investors (QIBs) subscribed 70.53 times over the share assigned to them, while non-institutional investors (NIIs) and retail individual investors (RIIs) subscribed 37.66 times and 31.10 times more than their reserve share in the IPO.
According to IPO Watch, Dreamfolks IPO GMP Is Close 105 per equity share on Monday. A gray market is where shares of a company are offered to traders unofficially.
having GMP 105 per share, Dreamfolks listing could be approx. 431 per share (upper price band 326 per share + 105 per share).
What Investors Should Know About Dreamfolx Services Listing?
DreamFolks Services is a leading player and India’s largest airport service aggregator platform that facilitates an enhanced airport experience for passengers by leveraging a technology-driven platform.
Analysts at Ventura Securities said in their report on August 25, “At an IPO price of Rs 326 (upper price band), Dreamfolks is priced at FY22 P/E.
104.8X. Dreamfolks is expected to benefit from our leadership position and upcoming growth opportunities in the aviation sector, however, we would like to monitor the operational performance post listing to gain confidence. We recommend neutral rating on the stock.”
Between FY20-22, Dreamfolks Revenue Declines at a CAGR of 12.3% 283 crores, which stood at 35 lakhs primarily on account of a 14.9% CAGR decline in passenger volume using Dreamfolks lounge services. The industry witnessed a decline of 17.0% CAGR in passenger volume to 5.2 million using lounge services.
“With the easing of travel restrictions, we expect Dreamfolks’ revenue and profitability to recover to pre-pandemic period levels for FY20,” the analysts report said.
Further, Akanksha Jain, Senior Research Analyst, Nirmal Bang, said in her report last month, “Going forward, with FY22 impacting COVID, we expect FY23 to be a year of growth. We expect the company to post sales 529.1 crore and 714 crores for FY23E, and FY24E respectively. (ie growth of 87.3% for FY23E, 35% for FY24E). With higher sales, we expect margins to improve from 8% in FY 2012 to 10% and 10.7% for FY 2013E and 2014E respectively. We hope, Adj Pat 38 crore and 55.7 crores for FY23E and FY24E respectively.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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