Shares of Dreamfolks Services, India's largest airport service aggregator, on Tuesday made a strong debut with a gain of 55 per cent. The stock, after opening at ₹505 on the BSE against the IPO price of ₹326, rallied further to ₹550. However, the stock closed the day 1 of listing at ₹462.65, higher by 41.91 per cent over its IPO price..
On the NSE, the stock was listed at ₹508.70, and settled at ₹462.85 apiece, rallying 41.97 per cent.
Robust response for IPO
The issue was subscribed almost 57 times, thanks to a robust response from all categories of investors. While qualified institutional investors (QIBs) subscribed 70.53 times, non-institutional investors (NII) and retail individual investors (RII) oversubscribed 37.66 times and 31.10 times respectively.
The IPO comprised an offer-for-sale (OFS) where promoters — Liberatha Peter Kallat, Dinesh Nagpal, and Mukesh Yadav — offloaded 1.72 crore shares.
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 -3 destinations, said Santosh Meena, Head of Research, Swastika Investmart Ltd.
"The company will be one of the biggest beneficiaries of 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," he added.