Dreamfolks Services Ltd IPO

Upcoming DRHP

IPO Synopsis

Dreamfolks Services Ltd, an airport service aggregator platform, has filed its preliminary papers with SEBI to raise funds through an initial share sale. The initial public offer (IPO) is entirely an offer-for-sale of up to 21,814,200 equity shares by promoters Liberatha Peter Kallat, Dinesh Nagpal, and Mukesh Yadav. The public issue will constitute 41.75% of the post-offer paid-up equity share capital of the company. Equirus Capital and Motilal Oswal Investment Advisors are the book running lead managers to the issue.

Objective of the Issue

The object of the issue is for:
1. To carry out the Offer for Sale of up to 21,814,200 Equity Shares by the Selling Shareholders
2. Enhance visibility and brand image and provide liquidity to the shareholders
3. Also provide a public market for the equity shares in India

About Dreamfolks Services Ltd

Dreamfolks Services Ltd is a dominant player and India's largest airport service aggregator platform, facilitating an enhanced airport experience to passengers leveraging a technology driven. The company's asset-light business model integrates global card networks operating in India, 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.

It commands a market share of over 95% of all India issued credit card and debit card access to airport lounges in FY 2020 and also accounted for around 67% of the overall lounge access volume in India. It facilitates consumers' access to the airport related services like lounges food & beverages, spa, meet & assist airport transfer, transit hotels or nap room access, and baggage transfer services.

It provides services to all the Card Networks operating in India including Visa, Mastercard, Diners/Discover and RuPay, and many of India’s prominent Card Issuers including ICICI Bank Limited, Axis Bank Limited, Kotak Mahindra Bank Limited, HDFC Bank Limited (in respect of debit card lounge program) and SBI Cards and Payment Services Limited.

The company has 100% coverage of operational lounges in Indian airports lounges including in Bengaluru, Chennai, Mumbai and New Delhi operated by various entities including Premium Port Lounge Management Company Private Limited, Travel Food Services Private Limited and Saptagiri Restaurant Private Limited. 

It has tied up with various entities to facilitate access to around 69 restaurants / F&B outlets at 19 airports across India and also caters a special menu under its names as these outlets.
Consumers can avail of specified massage therapies such as head, neck and shoulder massage, and foot reflexology.

It also facilitates end-to-end assistance to the consumers at the airports and have also entered into an agreement with an international airport concierge service provider facilitating the ‘meet and assist’ services at various airports across countries such as Australia, Austria, Canada, Belgium, Brazil, France, Germany, United Kingdom, United Arab Emirates and United States of America.

Particulars (in Rs. Crores) FY21 FY20 FY19
Revenue 105.63 367.04 248.28
EBITDA 2.10 45.85 23.62
PAT -1.45 31.68 15.27
Particulars (in Rs. Crores) FY21 FY20 FY19
Total Assets 122.50 137.76 89.16
Share Capital 4.75 4.75 4.75
Total Borrowings 2.02 3.09 2.04
Particulars (in Rs. Crores) FY21 FY20 FY19
Net cash generated from / (used in) operating activities 6.25 22.44 17.57
Net cash from / (used in) investing activities -26.85 -0.26 -7.14
Net cash flow from / (used in) financing activities -1.53 0.70 -5.48
Net increase (decrease) in cash and cash equivalents 22.13 23.40 4.95

Peer Comparison

There are no listed peer companies in India.


Key Points

  • Strengths:

    1. Dominant player in the airport lounge aggregation industry in India with strong tailwinds
    2. Entrenched relationships with marquee Clients including global card network providers in India and prominent Indian and global banks and corporates
    3. Strong business moat due to flywheel effect led by Clients and Operators network
    4. Ability to capitalize on growing Consumer base with no associated costs of direct Consumer acquisition
    5. Asset and human resource light business model with a strong track record of delivering consistent growth
    6. Proprietary technology platform that ensures scalability

  • Risks:

    1. Success is majorly dependent on our long-term relationship with card networks, card issuer financial institutions, airport lounge operators and other airport services providers
    2. Operations are heavily dependent on the travel industry, in general, and on the air travel industry, in particular
    3. It is heavily reliant on a few clients, and derives a significant part of the revenue from lounge access related services and from select clients
    4. Potential saturation of Indian markets and requirement of expansion in global markets
    5. Inability to compete effectively may lead to a lower market share or reduced operating margins

How to apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

  • Approve the mandate request on your UPI and funds will be blocked

FAQs

What is the price band of the IPO?

The data Dreamfolks Services is yet to be announced.

When does the Dreamfolks Services issue open and close?

The data Dreamfolks Services is yet to be announced.

What is the size of Dreamfolks Services IPO issue?

The IPO comprises a pure offer-for-sale of up to 21,814,200 equity shares by promoters.

Who are the promoters/key personnels of Dreamfolks Services?

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

What is the allotment date of Dreamfolks Services?

The data Dreamfolks Services is yet to be announced.

What is the Dreamfolks Services listing date?

The data Dreamfolks Services is yet to be announced.

Who are the book runners for Dreamfolks Services IPO?

Equirus Capital and Motilal Oswal Investment Advisors are the lead managers to the issue.

What is the objective of the issue?

The object of the issue is for:

1. To carry out the Offer for Sale of up to 21,814,200 Equity Shares by the Selling Shareholders
2. Enhance visibility and brand image and provide liquidity to the shareholders
3.  Also provide a public market for the equity shares in India
 

How to apply for the Dreamfolks Services IPO?

To apply for the IPO, follow the steps given below

•    Login to your 5paisa account and select the issue in the current IPO section
•    Enter the number of lots and price at which you wish to apply for
•    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange
•    You will receive a mandate notification to block funds in your UPI app

Open Demat Account