DreamFolks IPO GMP
Meanwhile, following strong response from the retail investors to DreamFolks Services IPO, grey market has gone highly bullish on the scrip in early morning deals. As per the market observers, DreamFolks IPO GMP has surged from ₹60 to ₹80 in early morning session, logging 25 per cent rise in GMP within an hour of stock market's opening bell today. Market observers said that the public issue has received strong response from the retail investors that has helped GMP rise by 25 per cent despite secondary market is trading flat today. They expected further rise in grey market sentiment if there is same upside move witnessed on Dalal Street as we witnessed on Tuesday session.
What this GMP mean
Market observers said that DreamFolks IPO GMP today is ₹80, which means grey market is expecting that DreamFolks Services shares may list around 406 ( ₹326 + ₹80), which is around 25 per cent higher from its price band of ₹308 to ₹326 per equity share. This means, after huge response from the retail investors, grey market is expecting around 25 per cent listing premium from the public issue.
However, stock market experts advised investors to avoid making any investment decision on the basis of rise in DreamFolks Services IPO GMP. They said that GMP is not an ideal indicator about success or failure of an issue as it has nothing to do with the financials of the company. They said that one should look at the balance sheet of the company because it gives long term view about the fundamentals of the company.
Giving 'subscribe' tag to the public issue, KRChoksey research report says, “DreamFolks Services Ltd (DreamFolks) is a dominant player and India's largest airport service aggregator platform, an incubator of the industry with its unique, asset-light, capital-efficient business model. DreamFolks provides services to all the Card Networks operating in India, including Visa, Mastercard, Diners/Discover and RuPay; and many of India's prominent Card Issuers, including ICICI Bank Limited, Axis Bank Limited, Kotak Mahindra Bank Limited, HDFC Bank Limited and SBI Cards and Payment Services Limited. It has a global footprint extending to 1,416 touch-points in 121 countries worldwide, out of which 244 Touch-points are present in India and 1,172 touch-points overseas, as of March 31, 2022."
The brokerage went on to add that the company's first mover advantage in the lounge access aggregator industry in India has enabled it to become a dominant player with a share of over 80% in the domestic lounge access market. 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 made above are those of individual analysts or broking companies, and not of Mint.
