DreamFolks Services IPO | Issue subscribed 6.09 times on day two, retail portion booked 19.1 times

DreamFolks Services IPO

The initial public offering (IPO) of DreamFolks Services was booked 6.09 times on August 25, the second day of bidding, getting good support from retail investors.

The retail portion has been subscribed 19.1 times. The total issue size was reduced to 94.83 lakh shares from 1.72 crore shares after the company raised Rs 253 crore through its anchor book on August 23.

Non-institutional investors have bid for 8.4 times shares set aside for them, while the qualified institutional buyers' portion was booked 60 percent.

DreamFolks Services is looking to raise Rs 562 crore through the issue, entirely an offer for sale, at the upper end of the price band of Rs 308-326 a share. The IPO closes on August 26.

Brokerage house Nirmal Bang has kept Subscribe rating on the issue.

With this, At the given upper price band of issue of Rs 326, Dreamfolk is offered at PE of 30.4x FY24E EPS which we feel is attractive, it added.

Angel Broking also have a subscribe rating on the issue from a medium to long term perspective.

DreamFolks started off its operations in 2013 by facilitating lounge access services for consumers of Mastercard and now provides services to all card networks operating in India, including Visa, Mastercard, Diners/Discover and RuPay.

It also provides services to many of India's prominent card issuers, including ICICI Bank, Axis Bank, Kotak Mahindra Bank, HDFC Bank (in respect of debit card lounge program) and SBI Card.

Over the years, it has transformed itself from being an airport lounge access aggregator to an end-to-end technology solutions provider for designing and delivering services that enhance the airport experience. Apart from lounge services, it also provides other airport related services such as food and beverages, spa, and pick-up-and-drop service.

It has a global footprint extending to 1,416 touch-points in 121 countries worldwide, out of which 244 touch-points are present in India, and 1,172 touch-points overseas (from zero presence till FY20), as of March 2022.

The company enjoys a dominant position in the segment with a share of over 80 percent in the domestic lounge access market, while it has over 95 percent market share of all India issued credit and debit card access to the airport lounges.