Dreamfolks Services shares rebound 14% from day's low after co clarification; key details

Shares of Dreamfolks Services Ltd rebounded 14 per cent from Friday's low to trade marginally higher after the company clarified to BSE and NSE regarding media reports suggesting major Indian banks and card networks, including ICICI Bank, Axis Bank, and Mastercard, were looking to move away from aggregator to establish direct partnerships with airport lounge operators. 

"Contract negotiation is a part of the regular business process, which is carried on annually with the clients and has no relation with the alleged new," Dreamfolks Services told BSE and NSE.

Following the development, Dreamfolks Services climbed 14 per cent from day's low of Rs 220.10 to hit a high of Rs 251.10 apiece. It was up 0.30 per cent at Rs 236 apiece on BSE, snapping a five-day losing run. The stock tumbled 10.28 per cent on Thursday.

"Contract negotiation is a part of the regular business process, which is carried on annually with the clients and has no relation with the alleged news. Our relationships with all our partners remain strong and fully intact. We work closely with more than 50 clients and as a practice, we enter into MSA’s for five years with an annual price escalation. This business practice has been going on since the inception of the company," Dreamfolks said.

Dreamfolks said "certain news" was floated in the media, which did not emanate from the company, noting that it was required to intimate about the same with stock exchanges not later than twenty-four hours and hence, the Company was in the process of intimating the same with the stock exchanges.

"There is no material impact of the referred articles on the company. Also, there are no regulatory/legal proceedings initiated or ongoing with regard to above matter. The company remains committed to adhering to the highest standards of corporate governance and will continue to inform the exchanges of any material events in a timely manner as required under applicable laws," Dreamfolks Services said.