DreamFolks' initial public offer (IPO) to raise up to Rs 562 crore was oversubscribed on Wednesday, the first day of the bidding process, with a robust response from retail investors. The IPO of DreamFolks — an airport service aggregator platform — will close for subscription on Friday, August 26.

Share Market Live

NSE

The initial share sale — entirely an offer for sale (OFS) by existing shareholders — saw bids for a total of 1.9 crore shares by 5 pm as against the 94.8 lakh shares on offer, a subscription of almost two times, according to provisional exchange data.

DreamFolks Services' is the second primary market offering to hit the Street after a gap of about 11 weeks.

DreamFolks expects to see revenues from other services to flow in the next few years, the company's Chairperson and Managing Director, Liberatha Peter Kallat, told CNBC-TV18.

"We get Rs 880 per passenger on average... We are inching back to pre-COVID levels," she said.

Potential investors will be able to bid for DreamFolks shares in a price range of Rs 308-326 in multiples of 46 under the IPO. That means one lot of shares will cost investors Rs 14,168-14,996.

Dealers said the company commanded a premium of up to Rs 85 ahead of the launch of the IPO. Grey market is an unofficial market for unlisted securities.

ALSO READ: A look at the best and worst debutants of 2022 so far

On Tuesday, Dreamfolks Services raised Rs 253 crore from anchor investors, including Societe Generale, BNP Paribas Arbitrage, Saint Capital Fund, Aditya Birla Sun Life Mutual Fund, Sundaram Mutual Fund and PNB Metlife India. The company allotted 7.8 crore shares at a price of Rs 326 apiece.

Catch latest market updates with CNBCTV18.com's blog

(Edited by : Sandeep Singh)

First Published:Aug 24, 2022 11:49 AM IST