The issue, which had opened for bidding on Wednesday, August 24, closes for subscription today. The company is selling its shares in the range of Rs 308-326 apiece to raise Rs 562 crore via the initial stake sale.
According to the data from BSE, investors made bids for 8,42,92,470 equity shares or 8.89 times compared to 94,83,302 equity shares offered for the subscription by 11 am on Friday, August 26.
The quota for retail bidders was subscribed about 25 times, whereas the allocation for HNI investors fetched 13.37 times bids. The quota for institutional investors was subscribed 1.37 times.
The company has reserved 75 per cent of the net offer for qualified institutional buyers (QIBs), whereas non-institutional buyers (NIIs) will get a 15 per cent allocation. Retail bidders will get only 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.
Even before the closure of its subscription, the company was commanding a strong premium in the grey market, thanks to a small size and a high number of bids for the IPO. Last heard, shares of DreamFolks Services were exchanging hands at a premium of 85-90 in the unofficial market.
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 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, Anand Rathi said with a ‘subscribe for long term’ rating to this IPO.
“With higher sales, we expect margins to improve and expect an adjusted PAT of Rs 38 crore and Rs 55.7 crore for FY23E and FY24E respectively,” said Nirmal Bang Institutional Equities.
With this, at the given upper price band of issue of Rs 326, Dreamfolk is offered at PE of 30.4x FY24E EPS which is attractive, it added, recommending subscribe rating to the issue.
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)
