DreamFolks Services' Initial Public Offering Fully Subscribed On Day 1

The initial public offering (IPO) of DreamFolks Services received wide attention from investors as it has been oversubscribed on the first day of bidding.

At the time of writing this report, the airport service aggregator's IPO was subscribed 1.09 times, market data showed.

The bidding for the company's Rs 562 crore initial public offering (IPO) will close on Friday.

The share price band has been set in the range of Rs 308 to Rs 326 per equity share. Bids can be made for a minimum of 46 equity shares and in multiples of 46 equity shares thereafter.

The public issue is entirely an offer for sale (OFS) of up to 17.24 million equity shares. Hence, the company will not receive any proceeds from the offer.

Out of the total shares offered for sale, 75 per cent is reserved for qualified institutional buyers (QIB). The remaining 10 per cent is reserved for retail investors and 15 per cent for non-institutional investors.

"Company has the ability to capitalize on growing Consumer base with no associated costs of direct consumer acquisition along with asset and human resource light business model with a strong track record of delivering consistent growth," brokerage Hem Securities said.

Taking all company fundamentals into consideration, the brokerage recommended investors to "Subscribe" to the IPO.

DreamFolks Services is considered as India's largest airport service aggregator platform as it has an early mover advantage in the airport services aggregator segment. It claims to control 95 per cent market share in the segment.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)