Dreamfolks Services share price drops 11% post strong debut; what should investors do with this counter?

Shares of Dreamfolks Services fell around 11% in BSE intraday trade on Tuesday after a strong debut on exchanges—NSE and BSE. The stock corrected 11.7% on the listing price to hit the day’s low of Rs 452.25 per share. The stock had opened at a premium of Rs 179 or 54.91% against the IPO issue price to Rs 505 per share on the BSE. On the NSE, the stock opened at Rs 508 per share, a premium of 56% from the issue price. The IPO issue price was fixed at Rs 326 per share. The stock jumped up to 68% in BSE intraday trade to Rs 550 per share on its debut day.  

As the Dreamfolks Services share price corrected significantly, what should investors do in this counter?  

Zee Business Managing Editor Anil Singhvi, who had predicted in line listing of RS 475-500, recommended short term Investors to keep a trailing stoploss of Rs 450 and trade in the counter. Earlier, the Market Guru had suggested retail investors should apply only for listing gains in this IPO.  

Ms. Liberatha Peter Kallat, CMD, DreamFolks Services Limited along with Shri @GIRIBSE, Chief Trading Operations and Listing Sales, @BSEIndia and Others ringing the #BSEBell to mark the listing of DreamFolks Services Limited on #BSE on 6th Sep, 2022 pic.twitter.com/KzNFKPPkpw

— BSE India (@BSEIndia) September 6, 2022

Meanwhile, Santosh Meena, Head of Research, Swastika Investmart Ltd attributed company’s superb listing 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, he said.  

Meena further said that 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% 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,” recommended the expert.  

Meanwhile, Dreamfolks Services share price dropped a little over seven per cent to Rs 468.50 per share in BSE intraday trade on Tuesday.