Dreamfolks Services IPO: GMP indicates strong listing. Should you subscribe?

Dreamfolks IPO Membership Status

according to information DreamFolks Services IPO Subscription StatusThe public issue has been subscribed 6.09 times after two days of bidding while its retail portion has been subscribed 19.10 times. Following a strong response from retail investors, the gray market on public offerings has become extremely bullish. As per market observers, the shares of Dreamfolx Services are available at a premium of 88 in the gray market today.

Dreamfolks IPO GMP Today

Dreamfolks IPO GMP (Grey Market Premium) Today, Market Observers Said 88, which is 5 More Than Its Thursday’s GMP 83. He said that the Dreamfolks IPO, which has garnered strong response from retail investors, has helped it gain the attractiveness of the bulls in the gray market despite the weakness in the secondary markets. He said the market sentiment is expected to strengthen after the end of the August series and thus public issues in both gray market and primary market are expected to strengthen.

What does this GMP mean?

Market Observers Said Dreamfolks Services IPO Is GMP Today 88, which means the gray market is expecting the Dreamfolks Services IPO listing to be around 414 ( 326+ 88), which is about 27 percent higher than its price band from 308 326 per equity share. He said the gray market is indicating that there may be a strong listing of Dreamfolx Services shares and allottees may get a listing premium of more than 25 per cent from the first public issue on Dalal Street.

However, stock market experts said the GMP is not an ideal indicator about the expected listing premium from an IPO. He added that the financial position of the company matters and the balance sheet of the company should be relied upon as it gives a long-term fundamental view of the company.

Dreamfolks Services IPO: Apply or Not?

Highlighting the fundamentals of the Dreamfolks Services IPO, HDFC Securities Retail Research Report says, “Started effective operations in 2013 by facilitating lounge access services for MasterCard customers and currently operating in India including Visa, MasterCard, etc. The card provides services to networks Diner/Discover and RuPay, and of India including ICICI Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd., HDFC Bank Ltd. (in connection with the Debit Card Lounge Program) and SBI Cards and Payment Services Ltd. Several major card issuers. Over the years, it has transformed from an airport lounge access aggregator to an end-to-end technology solutions provider, to design and deliver services that enhance the airport experience. Ltd. has formulated its service proposition to provide an option to offer a wider bouquet of services to the consumers. Presently, it provides the convenience of access to several services to the consumers: Door-Step to Air RT to Po, within the airport, and again from the airport to the door at the destination. The company’s first mover advantage in the lounge access aggregator industry in India has enabled it to become a major player in the industry with a share of over 80% in the domestic lounge access market in India.”

Giving the ‘subscribe’ tag to the public issue, Reliance Securities says, “Dreamfolks Services Limited has a strong business revenue potential over the next decade, driven by a) healthy air traffic growth, b) growth in credit card issuance and c. ) is due to better awareness. Higher penetration of card usage for lounges and from current low of ~5%. Strong business gap, healthy recovery in air passenger traffic, growth in lounge services, manifold potential for revenue growth, unparalleled assets Given the light and efficient business model, we recommend SUBSCRIBE to this issue.”

Dreamfolks IPO Details

Most of the tentative Dreamfolks IPO allotment date is 1st September 2022. The public issue is proposed to be listed on both NSE and BSE and the tentative Dreamfox IPO listing date is 6th September 2022. The issue is 100% OFS in nature.

Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.

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