The IPO opened for subscription on Wednesday, August 24 and can be subscribed till Friday, August 26. The company is selling its shares in the range of Rs 308-326 apiece to raise Rs 562 crore through the initial stake sale.
According to the data from BSE, investors made bids for 2,74,15,908 equity shares or 2.89 times compared to the 94,83,302 equity shares on offer by 11.30 am on Thursday.
The quota for retail bidders was subscribed 11.65 times, whereas the allocation for HNI investors fetched 2.33 times bids. The quota for institutional investors has been subscribed 25 per cent so far.
The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get 15 per cent allocation. Retail bidders will get a 10 per cent allocation.
The issue is entirely an offer for sale (OFS) of up to 1,72,42,368 equity shares with a face value of Rs 2 each by its promoters Liberatha Peter Kallat, Mukesh Yadav and Dinesh Nagpal.
The majority of the brokerages remain positive on the issue due to its asset-light model and growth prospects. However, a few of them suggest that the issue is aggressively priced and investors should bid for it with a long-term view only.
The rise in middle-class high-income population would also result in families undertaking frequent vacations and actively seeking out employment in different parts of the countries, said Anand Rathi Research in its IPO note.
The company has a unique business proposition amongst its customer base and also has an aspirational brand image which augurs well for the company in the long term, it added with a ‘subscribe for long-term’ rating to the IPO.
said that the company enjoys over 95 per cent market share in card-based lounge access with its asset-light business model. While valuation based on FY22 looks stretched, the full business recovery will be visible from FY23.
“Given the monopolistic nature of business and further growth potential in the air travel and credit card segment, we recommend ‘subscribe’ rating to this issue for listing gains,” it added
Dreamfolks Services raised Rs 253 crore from anchor investors ahead of its IPO as it allotted 7.76 crore shares to anchor investors at a price of Rs 326 apiece, aggregating the transaction size to Rs 253 crore, according to a circular on BSE.
Societe Generale,
Arbitrage, Saint Capital, Segantii India Mauritius, Kuber India Fund, Smallcap World Fund, Aditya Birla Sun Life, Mutual Fund, Quant Mutual Fund and Metlife India Insurance are among the anchor investors.
Equirus Capital and
Investment Advisors are the book-running lead managers to the offer, whereas Link Intime India is the registrar to the issue. Shares of the company will list on both BSE and NSE.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
