Indian airport service aggregator DreamFolks Services Ltd 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.