InvestorQ : How was the subscription response to the Dreamfolks IPO, which closed on Friday 26th August 2022?
Crowny Pinto made post

How was the subscription response to the Dreamfolks IPO, which closed on Friday 26th August 2022?

1 month ago

Dreamfolks Services Ltd closed its IPO on Friday 26th August. The response was pretty smart for the Rs562.10 crore offer for sale (OFS). The signals were there on Day-1 and Day-2 and the trend accentuated on Day-3. By the close of the IPO, it had been subscribed by 56.68 times overall. The strongest demand came from the qualified institutional buyers or QIBs. However, it must be noted that the response from the HNI and retail segment was also very robust. The IPO has already closed for subscription at the close of trading on 26th August. Out of 94.83 lakh shares on offer in the IPO, Dreamfolks got bids for 5,374.97 lakh shares.

Let me start with the QIB portion subscription. Even prior to the IPO, the QIB portion had seen 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. Now for the QIB IPO allocation (net of anchor allocation explained above). The residual quota for QIBs was 51.73 lakh shares of which it got bids for 3,648.13 lakh shares. Thus the QIB portion got subscribed 70.53X times. QIB bids typically get bunched on the last day but anchor placement was a good indicator.

Let me now turn to the NII / HNI portion of the IPO, which had 15% allocation. The HNI overall portion got subscribed 37.66 times. Against the allotted quota of 25.86 lakh shares, the company got applications for a total of 974.04 lakh shares. Now, the HNI/NII portion is reported in two sets based on application amount. The bids above Rs10 lakh category got subscribed 40.94X while the below Rs10 lakh bid category got subscribed 31.10X. The former category represents most of the large sized funding IPO applications.

Finally, let us move to the retail portion applications. The retail portion was subscribed 43.66 times by the close of Day-3 of the IPO. That is a signal of solid retail appetite. The retail allocation is just 10% in this IPO, since QIBs have 75% quota. Out of the 17.24 lakh shares on offer in retail quota, valid bids were received for 752.79 lakh shares. This included bids for 636.23 lakh shares at the cut-off price. Overall, the response across all investors categories was extremely encouraging for the Syrma SGS IPO.