Jobaaj Stories
Today, on 6th September 2022, the shares of Dreamfolks Services were listed on our bourses and the stock gave bumper returns on debut!
We at Jobaaj discussed the many details of the IPO of Dreamfolks Services, which is India's largest airport services aggregator. The shares of the company were allotted to its applicants on 5th September 2022, at a price of Rs 326 per share.
The IPO was a hot-cake item as the QIB portion was oversubscribed by a massive 70.53x times!! Following the same, the NII portion was oversubscribed by 37.66x times while the retail portion was 43.66x times! This means that the entire Rs 562 crores issue was oversubscribed 56.68x times!!
However, there were signs of a strong listing. Ahead of its IPO, the company garnered Rs 253 crores from several anchor investors like Matthews Asia Funds Asia Small Companies Fund, PNB Metlife India Insurance Company, Societe Generale, Segantii India Mauritius, Vikasa India EIF I Fund, and BNP Paribas Arbitrage.
Moreover, early today, the stock was available in the grey market at a premium of Rs 110 per share as analysts expected the stock to list strong around Rs 400 per share. Considering how well Syrma SGS listed, grey market premium served as a strong indicator for listing gains.
By 10:00 today, the stock smashed the estimates of the analysts as it was listed at Rs 508.70 per share! At today's close of Rs 462.40, the share has yielded returns of 45% in less than a month! An initial investment of Rs 14,996 (46 shares x Rs 326 per share) would have grown to Rs 21,720(46 shares x Rs 462.40 per share)!!
Moreover, after listing, the company declared its Q1FY22 results wherein the company reported a profit of Rs 13.43 crores against a loss of Rs 1.38 crores last year. Furthermore, revenues of the company surged a massive 546% to Rs 161 crores.
Being a company in the travel industry with a first mover advantage, having a light asset model, and improved financial performance as stated above & all set to face the surge in travel, analysts are suggesting a stop loss of Rs 350, but asking people to stay invested for a year as the stock is estimated to hit Rs 700 by the time.
On the other hand, some suggest that the PE is too high to see any upside, so brokerages have a mixed opinion on the stock, but an investor can stay with the stock if they are willing to take the risk.
Article by Aman Agarwal.
This news piece is brought to you in association with Jobaaj.com
