Dreamfolks IPO share price: The IPO will open for subscription on August 24 and close on August 26. Potential investors will be able for Dreamfolks shares in the range of Rs 308-326 in multiples of 46, which translates to Rs 14,168-14,996 per lot.
Dreamfolks' initial public offering (IPO) to raise up to Rs 562 crore will hit Dalal Street on Wednesday, days after investors lapped up the market's first issue in almost three months. Dealers say Dreamfolks — an airport service aggregator platform — is commanding a premium in the grey market ahead of the launch of the IPO.
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"Dreamfolks Services' business model looks attractive, but the issue appears to be priced on the higher side with an asking price-to-earnings (ratio) of 104 times its earnings," Abhay Doshi, Co-Founder of Unlisted Arena — a portal that tracks grey markets and deals in unlisted securities — told CNBCTV18.com.
The IPO comes close on the heels of Syrma SGS Technology's share sale, which saw a robust response from investors across categories. This makes Dreamfolks a second company to tap the primary market on Dalal Street after a gap of almost three months.
"The issue size, the small retail quota and primary market sentiments are the factors that should help the (Dreamfolks) issue in garnering a good response," Doshi said.
ALSO READ: Syrma grey market premium jumps 4 times
Entirely an offer for sale (OFS) — which means the company will not get proceeds from the issue, Dreamfolks' IPO will open for subscription on August 24 and close on August 26.
Potential investors will be able for Dreamfolks shares in the range of Rs 308-326 in multiples of 46 under the upcoming IPO, which translates to Rs 14,168-14,996 per lot.
Should you subscribe?
Jainam Broking recommends subscribing to the issue.
"The valuation of the company is high and it is the only point of concern... It has a first mover advantage as there are no such companies in India, with its peers being only present in China and the UK," the brokerage said in a note.
Analysts say post-pandemic tailwinds are expected to continue for the travelling industry.
The company returned to profitability in the year ended March 2022, with a net profit of Rs 16.3 crore as against a net loss of Rs 1.5 crore the previous year, according to its red herring prospectus.
Its revenue jumped 167.4 percent for the year ended March 2022 compared with the previous year, though still behind revenue of Rs 367 crore for the year ended March 2020.