Dreamfolks IPO: There has been a huge drop in retail demand on this issue. What does GMP suggest

Dreamfolks IPO GMP

Meanwhile, after a strong response from retail investors Dreamfolks Services IPO, rose sharply on gray market stocks in morning deals. According to market observers, Dreamfolks IPO has outstripped GMP from 60 80 in the morning session, the GMP registered a rise of 25 per cent within an hour of the opening of the stock market today. Market observers said the public issue has received a strong response from retail investors, which helped push GMP up by 25 per cent despite flat trading in the secondary market today. He expects the gray market sentiment to pick up further if Dalal Street sees similar gains as we saw in Tuesday’s session.

what does this gmp mean

Market Observers Said Dreamfolks IPO Is GMP Today 80, which means that the gray market is expecting Dreamfolks Services shares to be around 406 ( 326+ 80), which is about 25 percent more than its price band from 308 326 per equity share. This means that after an overwhelming response from retail investors, the gray market is expecting a listing premium of around 25 per cent from the public issue.

However, stock market experts advised investors to avoid taking any investment decision on the basis of increase in IPO GMP of DreamFolks Services. He said that GMP is not a perfect indicator about the success or failure of an issue as it has nothing to do with the financial position of the company. He added that one should look at the company’s balance sheet as it gives a long-term view about the company’s fundamentals.

Giving the ‘subscribe’ tag to the public issue, the KR Choksey Research report says, “Dreamfolks Services Limited (Dreamfolks) is a major player and India’s largest airport service aggregator platform, with its unique, asset-light, capital-efficient is an incubator of the industry with a business model. Dreamfolks services all card networks operating in India, including Visa, MasterCard, Diner/Discover and RuPay; and ICICI Bank Ltd., Axis Bank Ltd., Kotak Mahindra Bank Ltd. , HDFC Bank Ltd and SBI Cards & Payment Services Ltd. As of March 31, 2022, the global footprint is spread over 1,416 touch-points in 121 countries across the globe, of which 244 touch-points are in India. And there are 1,172 touch-points overseas.

The brokerage further said that the company’s first mover advantage in the lounge access aggregator industry in India has enabled it to become a major player in the domestic lounge access market with a share of over 80%. In addition, it has partnered with various entities to facilitate access to around 57 restaurants/F&B outlets at 18 airports across India.

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

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