Dreamfolks Services IPO review: Should you apply? Here's what Anil Singhvi recommends

Dreamfolks Services IPO review: The initial public offering of Dreamfolks Services, India's largest airport service aggregator platform, has opened for subscription on Wednesday, August 24. The Rs 562-crore entirely offer for sale IPO will close on Friday, August 26, 2022.  The company has set aside up to 17,242,368 equity shares for the OFS. The investors can bid in a lot of 46 shares and multiple shares thereof. 

The company has set aside an amount of Rs 421.58% or 75% of the overall issue size of Rs 562.10 crore for Qualified Institutional Buyers (QIBs). Besides, Rs 84.32 crore or 15% of the total size has been earmarked for NIBs. Likewise, the company has kept shares worth Rs 56.21 crore or 10% for retail investors. 

Dreamfolks Services Ltd. plans to carry out the offer for the sale of up to 17,242,368 equity shares by the selling shareholders with the benefits of listing the equity shares on the Stock Exchanges. Further, The Company expects that the listing will enhance its visibility and brand image and provide liquidity to the shareholders.   

What should investors do?  

Meanwhile, citing expensive valuations, Zee Business Managing Editor Anil Singhvi on Wednesday suggested investors to apply for short-term in the IPO. "One should apply for only listing gains in this IPO. Whether one should stay put with this company or not, we will talk about it posting," he said  

Though Singhvi agreed that the company is unique and has a monopoly in its business. Speaking about the positives, he said the company has experienced professional promotors. "Besides, it is an asset light, net debt free company with strong growth prospects," he added.  

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आज खुलेगा #DreamFolksServices का IPO, प्राइस बैंड ₹308-326/शेयर

DreamFolks Services IPO में क्या करें

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ड्रीमफोक्स सर्विसेज IPO में पैसा लगाएं या नहीं?

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Dreamfolks Services raises Rs Rs 253 crore from anchor investors 

Earlier, the airport Service aggregator on Tuesday raised Rs 253 crore from anchor investors ahead of its initial share-sale. Societe Generale, BNP Paribas Arbitrage, Saint Capital Fund, Segantii India Mauritius, Kuber India Fund, Smallcap World Fund, Inc, Aditya Birla Sun Life Mutual Fund, Sundaram Mutual Fund, Quant Mutual Fund and PNB Metlife India Insurance Company Limited were among the anchor investors. 

As per a regulatory filing, the company has decided to allot 7.76 crore shares to anchor investors at a price of Rs 326 apiece, aggregating the transaction size to Rs 253 crore. 

DreamFolks facilitates consumers' access to airport-related services like lounges, food and beverages, spa, meet and assist airport transfer, transit hotels or nap room access, and baggage transfer services. 

Meanwhile, retail portion of the IPO was fully subscribed within minutes of opening, while overall subscription stood at 0.21 times at 10.18, according to NSE data