Dreamfolks Services Ltd. IPO
Dreamfolks Services Ltd.
IPO Listing Details
Listed On
BSE & NSE
Listed On
Issue Price
₹326
Issue Price
Listing Price
₹505
Listing Price
Listing Gains
+₹179.00 (+54.91%)
Listing Gains
IPO Details
Bidding Dates
24 Aug - 26 Aug '22
Bidding Dates
Min. Investment
₹14,168
Min. Investment
Lot Size
46.00
Lot Size
Price Range
₹308 - ₹326
Price Range
Issue Size
531 Cr
Issue Size
Subscription Rate
- Retail Individual Investor43.66x
- Non-Institutional Investor37.66x
- Qualified Institutional Buyers70.53x
- Employees
About Company
DreamFolks Services IPO will be the second initial public offering (IPO) to be launched in the month of August after the Syrma SGS Technology IPO that closed on August 18.
Dreamfolks Services is a dominant player and India’s largest airport service aggregator platform with a share of more than 80% in the domestic lounge access market. The company’s asset-light business model integrates global card networks operating in India, credit card and debit card issuers, and other corporate clients, in India, including airline companies with various airport lounge operators and other airport-related service providers on a unified technology platform.
The company facilitates customers of Clients’ access to airport-related services like lounges, food and beverage, spa, meet and assist, airport transfer, transit hotels /nap room access, and baggage transfer.
The company’s platform and services portfolio allows Card Networks, Card Issuers, and Corporate Clients to build customised solutions addressing disparate aspects of airport services for consumers.
The Rs 562.10-crore Dreamfolks Services IPO will open for subscription from August 24 to August 26 and is a complete offer for sale (OFS) of 1,72,42,368 equity shares by promoters. It will constitute 33% of the post-offer paid-up equity. The price band for the issue has been fixed at Rs 308 to 326.
The company will not receive any proceeds from the IPO as it is an offer for sale issue.
Mukesh Yadav and Dinesh Nagpal will offload 65.31 lakh equity shares each, while Liberatha Peter Kallat will sell 41.79 lakh shares in the OFS.
Financial Snapshot -Dreamfolks Services Ltd IPO
Dreamfolks Services’ financials took a toll due to the pandemic as it reported a net loss in FY21. However, the company seems to be on a recovery path, but the revenue and net profit are still below the pre-pandemic level. The company expects it to cross the pre-pandemic level in the near term. Check the recent years’ financial performance of Dreamfolks Services in the below table. It is always recommended to read the detailed financial statements and the draft red herring prospectus before investing in any new company via their IPO.
| Financial Year | Total Assets | Total Revenues | Profit After Tax |
|---|---|---|---|
| March 2020 | Rs 137.76 crore | Rs 367.81 crore | Rs 31.68 crore |
| March 2021 | Rs 122.5 crore | Rs 108.11 crore | Rs -1.45 crore |
| March 2022 | Rs 168.68 crore | Rs 283.99 crore | Rs 16.25 crore |
Why should you invest in Dreamfolks Services Ltd. IPO?
Dreamfolks Services is India’s largest airport service aggregator platform and enjoys a 95% market share. It has a first-mover status in the segment. The company has an asset-light business model and is gaining the preference of air travellers. The company’s financial performance, which suffered a blow due to the COVID-19 pandemic, is now on a recovery path and the management expects its financials to cross above pre-pandemic levels in the near term.
Dreamfolks Services IPO Noteworthy Highlights
Check out some of the key details and information about Dreamfolks Services IPO before investing:
- Dreamfolks Services facilitates access to 100% of the 54 lounges currently operational in India
- It enjoyed a market share of over 95% of all India-issued credit card and debit card access to airport lounges in FY2022
- As of March 31, 2022, through partnerships with other service providers, the company has a global footprint extending to 1,416 Touch-points in 121 countries across the world out of which, 244 Touch-points are present in India and 1,172 Touch-points overseas
- Dreamfolks Services IPO lot size is 46 shares, and a retail-individual investor can apply for up to 13 lots
- After the IPO, promoter shareholding in the company will reduce to 67% from 100%
Important Dates - Dreamfolks Services Ltd IPO
| Application opens on | 24th August 2022 |
| Last date of application | 26th August 2022 |
| Date of Allotment | 1st September 2022 |
| Refund begins from | 2nd September 2022 |
| Credit of shares to Demat | 5th September 2022 |
| Listing date | 6th September 2022 |
Dreamfolks Services IPO Grey Market Premium
| Date | GMP |
|---|---|
| 23rd August | Rs.65 |
| 22nd August | Rs.85 |
Dreamfolks Services Ltd. IPO - SWOT Analysis
Strengths
Dreamfolks Services is a dominant player in India’s airport lounge aggregation industry and enjoys strong tailwinds. Its asset-light business model increases its ability to scale up with minimal incremental capital requirement resulting in high operating leverage. The company’s strong focus on technology ensures scalability.
Weaknesses
The company’s success is dependent on its long-term relationship with card networks and card issuer financial institutions, which on average contributed 98.98% of the total revenue from operations during the Fiscals 2022, 2021 and 2020. This exposes them to risk emanating from the inability to retain their established card networks and card issuer companies as clients. The company’s top 5 clients on average contributed 84.91% of the total revenue from operations during Fiscal 2022, Fiscal 2021 and Fiscal 2020.
Opportunities
Dreamfolks Services is expanding into newer sectors to create customer engagement and provide loyalty management solutions in addition to specific solutions for Card Networks. It also plans to create ancillary revenue opportunities for clients in the online travel agency and airline industries. Its technology-driven solutions and tools are geared inter alia towards providing the clients the option of tailoring and creating different products for the consumers. It constantly aims to identify opportunities to implement product improvements and a dedicated product development team to optimize platform features.
Threats
The company’s operations are heavily dependent on the air travel industry. If the COVID-19 pandemic continues to have a material adverse effect on the travel industry, it will consequently have a potential impact on the company’s business, financial condition, and results of operations.
A competitive analysis
As per the Draft Red Herring Prospectus (DRHP), Dreamfolks Services has no listed peers in India. The company, at present, enjoys a virtual monopoly in this segment with a 95% market share, according to its management.
How to apply for Dreamfolks Services Ltd. IPO?
You can apply for the Dreamfolks Services Ltd. IPO in these ways:
UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.
Demat Account
1. If you are an Existing TradeSmart demat account holder and wish to apply for an Dreamfolks Services Ltd. click here.
2. If you don't have a TradeSmart Account? Sign up.
