Airport service aggregator platform DreamFolks Services listed with a strong 56 percent gains on September 6, which was better than analysts' expectations and grey market premium of 30-40 percent.
The stock opened at Rs 505 on the BSE, against issue price of Rs 326, and the opening tick on the NSE was Rs 508.70.
Healthy initial public offering (IPO) subscription, positive market conditions, leadership in airport lounge aggregation industry, and asset light business model boosted investor confidence.
The Rs 562-crore IPO had received strong response from investors, getting subscribed 56.68 times during August 24-26. It was entirely an offer for sale by shareholders.
The price band for the offer was Rs 308-326 per share.
DreamFolks Services is a dominant player and India's largest airport service aggregator platform.
The company facilitates access to airport-related services such as lounge, food & beverages, spa, pick up and drop service.
Most analysts had a subscribe rating on the issue, citing significant market share and early mover advantage in the segment.
"The firm enjoys a 95 percent market share and early mover advantage in the segment. It has been an asset-light business model gaining preference of air travellers. Further, it has focused on diversifying and increasing its services portfolio. Thus, we have a subscribe rating on the issue from a medium to long-term perspective," Purves S Chaudhari of Angel One said.
As the air travel industry recovers sharply from Covid-19 uncertainties, Vikrant Kashyap of KRChoksey Research is optimistic the company is well-poised for upcoming growth opportunities owing to its market dominance.
The firm has also been expanding its presence in the international air lounge market. Kashyap believes it is significant for the company to grow in domestic and international lounge services by expanding its partnerships with card issuers and other service providers. As a result, he had a subscribe rating on the issue.
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