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Dreamfolks Services IPO: Dreamfolks Services three-day share sale via initial public offering (IPO) opened for subscription on Wednesday August 24. The company is planning to raise Rs 562 crore by selling shares in the IPO which is purely an offer for sale (OFS) wherein its existing shareholders Mukesh Yadav, Dinesh Nagpal and Leberatha Peter Kallat are selling 1,72,42,368 shares of Rs 2 each.
Dreamfolks Services has fixed price band of Rs 308 to 326 per share in the IPO and retail investors can bid for minimum one lot of 46 shares up to maximum of 13 lots. At the upper end of the price band one lot of Dreamfolks Services shares will cost Rs 14,996. 75 per cent shares in the IPO have been reserved for qualified institutional buyers (QIBs), 10 per cent for retail investors and 15 per cent shares have been set aside for non-institutional investors which include high net-worth individuals (HNI).
Dreamfolks Services IPO will close on August 26 and in the grey market the stock was being offered at a premium of Rs 65 per share.
Dreamfolks Services Limited (DFSL) is a dominant player and India’s largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology driven platform. Company follows an asset light business model that integrates global card networks in India, 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. DFSL facilitates the customers of its clients to access the airport related services such as lounge, food & beverages, spa, pick up and drop service amongst others. Company has 100 per cent market share in facilitating 54 lounges currently operational in India and it also has over 95 per cent market share of all India issued credit and debit cards access to the airport lounges.
Brokerage firm Angel One has a subscribe rating on the IPO.
“In terms of valuations, the post-issue price-to-earnings (P/E) ratio works out to 104.8 times FY22 EPS (at the upper end of the issue price band). However, the multiple looks higher mainly due to lower profitability caused by pandemic led industry wide issues. DFSL enjoys a 95 per cent market share and enjoys early mover advantage in the segment. It has been an asset-light business model gaining the preference of air travellers. Further, DFSL has focused on diversifying and increasing its services portfolio. Thus, we have a subscribe rating on the issue from a medium to long-term perspective,” Angel One said in a report.
Dreamfolks shares will be listed on September 6.
The retail portion of Dreamfolks Services IPO was subscribed fully within hours of opening data from the National Stock Exchange showed. Retail portion of the IPO was subscribed 2.36 times, portion reserved for non-institutional investors was booked 0.19 times and portion reserved for qualified institutional buyers was not subscribed.
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