Shares Rise 56% on Debut; Should You Buy, Sell or Hold?


Last Updated: September 06, 2022, 10:05 IST

DreamFolks Services made its D-street debut today

DreamFolks Services made its D-street debut today. Shares of the company began trading on the NSE at Rs 508 per share, up 56 per cent from the IPO price of Rs 308-326 apiece per share

DreamFolks Services Listing Price: DreamFolks Services made its D-street debut today. Shares of the company began trading on the NSE at Rs 508 per share, up 56 per cent from the IPO price of Rs 308-326 apiece per share and on the BSE the stock debuted at Rs 505 apiece, rising 55 per cent. At the time of listing, the company had a market capitalisation of Rs 2,638.63 crore. The company launched its nearly Rs562 crore initial public offering (IPO) from August 24 to August 26 and received strong demand across investor categories. The IPO had subscribed by 56.68 times. Currently, DreamFolks IPO grey market premium (GMP) is around Rs 105.

The quota for retail investors (RIIs) was subscribed 43.66 times, the category for non-institutional investors 37.66 times and the portion for qualified institutional buyers (QIBs) 70.53 times. The IPO got fully subscribed within hours of opening on Wednesday ending the day with 1.96 times subscription.

The issue, entirely an offer for sale, is sized at Rs 562 crore at the upper end of the price band of Rs 308-326 a share.

What Should Investors Do Now?

Santosh Meena, Head of Research, Swastika Investmart Ltd., said: “DreamFolks Ltd. has debuted at Rs. 508.70 i.e. 56 per cent above its issue price.  The company’s superb listing can be attributed to positive market sentiments, bright future prospects, and a phenomenal response from investors. The Indian aviation industry is at the cusp of exponential growth in the next two decades due to its demographic advantages, the potential growth in middle-class income, rising business travel, reduced cost of air travel and increased travel in Tier-2 and Tier-3 destinations. The company will be one of the biggest beneficiaries of 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 was richly priced at a P/E of 104.82 based on annualized FY22 numbers and the promoters have diluted 33 per cent of their stake in the OFS.  Those who applied for listing gains can maintain a stop loss of Rs. 457. Only long-term investors with a moderate to high-risk appetite should enter post-listing.”

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