DreamFolks Services made a solid market debut on Tuesday. The stock listed at ₹508.70 on NSE at a 56 percent premium over its issue price of ₹326. Meanwhile, on BSE, it debuted at ₹505 on BSE, up 54.91 percent from issue price.
The stock further extended gains to touch the day's high of ₹549, which is a premium of 68 percent over IPO price. It ended at a 42 percent premium at ₹463 on NSE.
DreamFolks Services IPO was open between August 24 and August 26. The ₹562-crore issue was subscribed a solid 56.68 times, with the qualified institutional investor quota getting subscribed by 70.53 times, NII quota by 37.66 times and retail quota by 43.66 times.
The company’s IPO was entirely an offer for sale by existing shareholders of up to 17.24 million equity shares. Earlier, the firm had planned to sell 21.81 million shares through the IPO, which has now been reduced by 20 percent due to market volatility.
Post the issue, the promoter group would comprise 67 percent of shareholding, whereas the rest 33 percent would go to the public.
Incorporated in 2008, DreamFolks is India’s largest airport service aggregator platform and has no listed peers at the bourses. The company 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.
Currently, the firm facilitates all the 54 lounges operational in India and enjoys a market share of over 80 percent in the domestic lounge access market. It also commands a market share of over 95 percent of all credit card and debit card access to airport lounges at the end of fiscal 2021-22 (FY22).
The company's revenue from operations increased from ₹98.7 crore during fiscal 2017 to ₹367.04 crore in fiscal 2020 at a compounded annual growth rate of 55 percent. In FY22, its revenue surged 167.5 percent to ₹282.5 crore at the end of FY22 from ₹105.6 crore in FY21. Net profit margin also jumped to 5.75 percent in FY22 from 1.37 percent in FY21.
Most brokerages had a subscribe rating on the IPO. According to Axis Capital, the company is a dominant player in the airport lounge aggregation industry in India, and enjoys a first-mover’s advantage.