Dreamfolks Services Ltd IPO subscribed 56.68 times at close of Day-3

The Rs.562.10 crore IPO of Dreamfolks Services Ltd, consisted entirely of an offer for sale of Rs562.10 crore and there was no fresh issue component in the IPO. The IPO saw encouraging response on Day-1 and Day-2 of the IPO and on Day-3, the IPO built on the demand across segments. As per the combined bid details put out by the BSE at the close of Day-3, Dreamfolks Services Ltd IPO was subscribed 56.68X overall, with strong demand coming from the QIB segment as well as very robust demand from the HNI segment and the retail segments. The issue has closed for subscription on 26th August 2022. 

As of close of 26th August 2022, out of the 94.83 lakh shares on offer in the IPO, Dreamfolks Services Ltd saw bids for 5,374.97 lakh shares. This implies an overall subscription of 56.68X. The granular break-up of subscriptions was dominated by the QIBs while the HNIs and the retail investors were also quite robust in their response. QIB bids and NII bids typically gather most of the momentum on the last day, and that is what we saw in this issue too.

Dreamfolks Services Ltd IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 23rd August 2022, Dreamfolks Services Ltd did an anchor placement of 77,59,066 shares at the upper end of the price band of Rs.326 to 18 anchor investors raising Rs.252.95 crore. The list of QIB investors included a number of marquee global names like Small Cap World Fund (Capital Group), Kuber India Fund, Malabar India Fund, Elara India Opportunities Fund etc. Domestic anchor investors included Aditya Birla Sun Life Mutual Fund, Invesco Mutual Fund, Sundaram Mutual Fund, Mirae Fund, Quant Fund and Sunil Singhania’s Abakkus Growth Fund.

The QIB portion (net of anchor allocation as explained above) has a quota of 51.73 lakh shares of which it has got bids for 3,648.13 lakh shares at the close of Day-3, implying a subscription ratio of 70.53X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day but the heavy demand for the anchor placement had given an indication of the institutional appetite for the Dreamfolks Services Ltd IPO subscription overall.

HNI / NII Portion

The HNI portion got subscribed 37.66X (getting applications for 974.04 lakh shares against the quota of 25.86 lakh shares). This is a relatively strong response on Day-3 but of course this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO. 

Now the NII/HNI portion is reported in two parts viz. bids below Rs10 lakhs and bids above Rs10 lakhs. The bids above the Rs10 lakh category typically represents most of the major funding customers. If you break up the HNI portion, the above Rs10 lakh bid category got oversubscribed 40.94X while the below Rs10 lakh bid category got oversubscribed 31.10X. This is just for information and is part of the overall HNI bids explained in previous para.

Retail Individuals

The retail portion was subscribed an impressive 43.66X at the close of Day-3, showing strong retail appetite. It must be noted that retail allocation is only 10% in this IPO. For retail investors; out of the 17.24 lakh shares on offer, valid bids were received for 752.79 lakh shares, which included bids for 636.23 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.308-Rs.326) and has closed for subscription as of the close of Friday, 26th August 2022.