Shares of airport service aggregator DreamFolks Services made a blockbuster market debut on Tuesday. The stock got listed at a premium of 56 per cent against the issue price of Rs 326. The stock was listed at Rs 505, registering a jump of 54.90 per cent from the issue price on the BSE. It further rallied 68.71 per cent to Rs 550.
At the NSE, the company made its debut at Rs 508.70, a jump of 56 per cent.
The Initial Public Offer (IPO) of DreamFolks Services was subscribed 56.68 times last month.
The IPO was entirely an Offer-For-Sale (OFS) of 1,72,42,368 equity shares and was priced in the range of Rs 308-326 a share.
The company facilitates consumers' access to airport-related services like lounges, food and beverages, spa, meet and assist airport transfer, transit hotels or nap rooms, and baggage transfer services.
After a lull of three months India's IPO market is witnessing signs of revival and that has been made possible with the help of sharp turn around visible in the market. The Indian equity benchmarks staged a strong rebound from 52-week low hit in June on the back of buying by foreign investors and decline in crude oil and base metals, analysts said.
The NSE benchmark Nifty 50 index has surged a whopping 18.5 per cent from low of 15,183 hit on June 17, marking its fastest three-month rally in over two decades, news agency Bloomberg reprted.
Before today's listing of Dreamfolks Services, Syrma SGS Technology made strong stock market on August 26 and got listed at a premium of 42 per cent over its IPO price.
Meanwhile, the ongoing share sale of Tamilnad Mercantile Bank was fully subscribed on second day of the issue. The IPO of Tamilnad Mercantile Bank was subscribed 1.53 times.
The Rs 831.6-crore public offer received bids for 1,33,68,460 shares, against 87,12,000 shares on offer, according NSE.
Retail Individual Investors (RIIs) category received 3.61 times subscription. The portion for non institutional investors got subscribed 1.09 times and Qualified Institutional Buyers (QIBs) quota was subscribed 98 per cent.
The above data indicates that the risk appetite for new offerings has returned for the IPO markets, say analysts.
“Dreamfolks is managing lounges across airports in the country which is a new business and it has long way to go and investors who are looking to invest in it should hold a long term view on the stock,” says AK Prabhakar, head of research at IDBI Capital.
Dreamfolks' business is unique and its IPO size was relatively smaller that led to listing gains for the company as investors lapped on to shares in the secondary market, he adds.
The year 2021 was the best years for IPOs in the country as 64 companies raised over Rs 1 lakh crore from share sales via IPOs as markets were flushed with liquidity. Indian companies raised a whopping Rs 1.18 lakh crore from investors last year, data from stock exchanges showed.
Meanwhile, Indian companies have till August raised Rs 34,295 crore from 19 issues, data from Prime Database shows.
(With PTI inputs)
