DreamFolks Services Ltd IPO

Closed DRHP

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IPO Subscription Details

Open Date 24 Aug
Close Date 26 Aug
Lot Size 46
IPO Size ₹ 562.10 Cr
IPO Price Range ₹ 308 - ₹326
Min Investment ₹ 14,168
Listing Exchange BSE, NSE
Basis of Allotment 01 Sep
Refunds 02 Sep
Credit to Demat Account 05 Sep
Listing Date 06 Sep

IPO Synopsis

DreamFolks Services Ltd IPO will open on 24th August 2022 and close on 26th August, 2022. Anchor investors will be allowed to bid for the IPO on August 23, the day ahead of the opening. The price band is fixed at ₹308 to ₹326 per share and lot size is set at 46 shares per lot. The tentative listing date is set for 6th September, 2022 and the tentative allotment date is set for 1st September, 2022.

The initial public offer (IPO) is entirely an offer-for-sale of up to 1.72 crores 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.
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 1.72 crores 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

IPO Subscription Status

	QIB	NII	Retail	TOTAL
Day 1 (Aug 24)	0.25x	1.39x	7.93x	1.96x
Day 2 (Aug 25)	0.60x	8.40x	19.10x	6.09x
Day 3 (Aug 26)	70.53x	37.66x	43.66x	56.68x

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.

Balance Sheet

Total Assets
Share Capital
Total Liabilities

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.

IPO 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

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IPO FAQs

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

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