Dreamfolks Services IPO | Review

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Dreamfolks Services Limited has come up with an initial public offer (IPO). It will open on August 24-26, 2022 at Rs.308-326 a share. The IPO issue size is around Rs.562.10 crore. The minimum bid will be for 46 shares and in its multiples thereafter.

Overview

Dreamfolks is a dominant player and India’s largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology driven platform. The company’s asset-light business model integrates global card networks operating in India (Card Networks), credit card and debit card issuers (Card Issuers) and other corporate clients, in India, including airline companies (Corporate Clients and along with Card Networks and Card Issuers, the Clients) with various airport lounge operators and other airport related service providers on a unified technology platform. It facilitate customers of Clients’ (Consumers) access to the following airport related services (i) lounges, (ii) food and beverage (iii) spa, (iv) meet and assist, (v), airport transfer (vi) transit hotels /nap room access, and (vii) baggage transfer.

Dreamfolds Ltd. also enjoyed a market share of over 95% of all India issued credit card and debit card (Card Based) access to airport lounges in 2022. Additionally, it also accounted for around 68% of the overall lounge access volume in India. Further, it have 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. The company began effective operations in 2013 by facilitating lounge access services for the Consumers of Mastercard.

Website – https://www.dreamfolks.in/

Promoters

Liberatha Peter Kallat – 33%	Mukesh Yadav – 34%
Dinesh Nagpal – 33%

Promoter Holding

Pre-Issue Shareholding – 100%

Post-Issue Shareholding – 67%

Strength & Weakness

Strengths	Weaknesses
Dominant player in the airport lounge industry	Highly depends on financial institutions
Strong relationships with global card network providers in India	Business depends substantially on our Promoters
Strong business moat	Highly dependent on air travel industry
Growing Consumer base	Heavily reliant on a few Client
Strong track record of delivering consistent growth	Heavily dependent on the Debit & Credit cards
Proprietary technology platform	Potential saturation of Indian markets
Experienced promoters and management team	Highly depends on airport lounge operators
Prominent Indian and global banks and corporates customers	Cyber-attacks or system security risks

Customers

Mastercard	Visa	Diners/Discover
Rupay	ICICI Bank	Axis Bank
Kotak Mahindra Bank	HDFC Bank	SBI Cards
IndiGo	EaseMyTrip	Club Mahindra
Air Asia	Vodafone-Idea	Hettich

Competitors

The company does not have any listed peer companies

Company Financials

Year	Revenue (in Crore)	Profit (in Crore)
31-Mar-2020	367.81	31.68
31-Mar-2021	108.11	-1.45
31-Mar-2022	283.99	16.25

Object of Issue

1) To carry out the Offer for Sale (OFS) of up to 17,242,368 Equity Shares

2) Provide liquidity to selling Shareholders

3) Benefits of listing the Equity Shares on the Stock Exchanges

4) Enhance company’s visibility and brand image

Dreamfolks Services IPO Lot Size

Application	Lot	Shares	Amount
Minimum	1	46	Rs.14,996
Maximum	13	598	Rs.1,94,948

Dreamfolks Services IPO details

IPO Opening Date	August 24, 2022
IPO Closing Date	August 26, 2022
Face Value	Rs.2 per Equity Share
IPO Price	Rs.308-326 per share
Market Lot	46 shares
Minimum Order Quantity	46 shares
Listing At	NSE, BSE
No. of shares offered (OFS)	17,242,368 shares
Issue Size	Up to Rs. 562.10 Crore
QIB Shares Offered	75% of the offer
Retail Shares Offered	10% of the offer
NII/HNI Shares Offered	15% of the offer

Dreamfolks Services IPO Timetable

IPO Date	August 24-26, 2022
Allotment Date	September 1, 2022
Initiation of Refunds	September 2, 2022
Credit of share to Demat a/c	September 5, 2022
IPO Listing Date	September 6, 2022