Indian airport service aggregator DreamFolks soars 68% in market debut (updated)

Dreamfolks Services

06/09/2022 07:25

(Adds details, updates shares)
    BENGALURU, Sept 6 (Reuters) - Indian airport service
aggregator DreamFolks Services Ltd  DREM.NS  surged 68.4% in its
market debut on Tuesday after its IPO drew strong response from
investors betting on robust growth in air travel demand in
Asia's third largest economy.
    Shares climbed to as much as 549 rupees in the session,
giving the company a valuation of 28.71 billion rupees ($359.45
million). The stock was trading at 473 rupees as of 0543 GMT,
compared to the issue price of 326 rupees.
    The blockbuster debut comes as public listings globally have
dried up following Russia's invasion of Ukraine and an
escalation of geopolitical tensions between the West and China. 
    DreamFolks is well poised to capitalise on an expected jump
in air travel and credit card usage in India following the
pandemic, analysts have said.
    Underscoring the potential, DreamFolks posted a profit of
134.4 million rupees for the June quarter in results released
after the debut, compared to a loss of 13.9 million rupees a
year earlier. Revenue surged 6.5-fold to 1.6 billion rupees.
    The company's IPO last month, which raised $70 million and
consisted solely of sales by existing shareholders, drew bids
for nearly 57 times the offer, with strong response from both
retail and institutional investors. 
    New Delhi-based DreamFolks acts as a service provider
between lounge operators and banks, card networks, airlines and
corporates. It covers all of India's airport lounges across
domestic and international terminals.

($1 = 79.8730 Indian rupees)

 (Reporting by Chris Thomas in Bengaluru; Editing by Sriraj
Kalluvila)
 ((chris.thomas@thomsonreuters.com; +91 80 6210 0487;))