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 Investor
    43.66x
  • Non-Institutional Investor
    37.66x
  • Qualified Institutional Buyers
    70.53x
  • 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
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Demat Account

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Dreamfolks Services Ltd. IPO FAQs

When will the Dreamfolks Services IPO be launched?

Dreamfolks Services IPO will open for subscription on August 24 and close on August 26.

What is the IPO price band?

The IPO price band has been fixed at Rs 308 to 326 per share.

Who are Dreamfolks Services IPO Lead Managers?

Equirus Capital and Motilal Oswal Investment Advisors are the BRLMs for the issue.

Who is the registrar to the issue?

Link Intime India Pvt. Ltd is the registrar for Dreamfolks Services IPO.

Who are the promoters of Dreamfolks Services?

Liberatha Peter Kallat, Mukesh Yadav and Dinesh Nagpal are the promoters of Dreamfolks Services. 

What is Dreamfolks Services IPO Minimum and Maximum Lot Size?

The Dreamfolks Services IPO lot size is 46 shares. A retail-individual investor can opt for up to 13 lots.

When and where will the Dreamfolks Services shares be listed?

Dreamfolks Services’ shares are proposed to be listed on September 6, 2022, on BSE and NSE.

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