Airport Service aggregator platform Dreamfolks Services Ltd has fixed a price band of ₹308-326 for its three-day initial public offering (IPO) which will open for public subscription on Wednesday, August 24, 2022 and the issue will conclude on Friday, August 26. The bidding for anchor investors would open on on Wednesday.
Dreamfolks Services IPO is entirely an Offer For Sale (OFS) of up to 1.72 crore equity shares by promoters Liberatha Peter Kallat, Dinesh Nagpal and Mukesh Yadav. The public issue will constitute 33% of the post offer paid-up equity share capital of the company.
As per market observers, Dreamfolks Services shares are available at a premium (GMP) of ₹55 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Tuesday, September 6, 2022.
DreamFolks facilitates an enhanced airport experience for passengers, leveraging its technology-driven platform. The company’s asset-light business model integrates global and domestic networks, credit card and debit card issuers and other corporate clients, including airline companies, with various airport lounge operators and other airport-related service providers on a unified technology platform.
Equirus Capital and Motilal Oswal Investment Advisors are the book running lead managers to the public issue. Link Intime India Private Ltd is the registrar of the initial share sale.
According to Axis Capital report, given Dreamfolks Services’ dominant position in the airport lounge access market, they have been successful in building a bridge between their clients and airport lounge operators. Their position in the industry enables them to create interdependencies for their service offerings through their unique value proposition enabling them to attract newer clients and operators, which helps them further strengthen their position in the market.
As at March 31, 2022, Dreamforks had 50 Clients including the Card Networks and many of India’s prominent Card Issuers. As of March 31, 2022, 9.79 million Paxes, cumulatively, had availed of their services, since Fiscal 2020.
“The business model looks promising, however, the issue looks richly priced with an asking PE of 104.82x. Also, the issue is purely an OFS of over 32% shares which looks significantly higher. The Issue size, retail quota, primary market sentiments are the factors which should help the issue in garnering good subscription which may lead to a positive listing,” said Abhay Doshi, cofounder of Unlisted Arena.
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