DreamFolks Services IPO Review: Know All About This IPO
Dreamfolks Services Limited IPO Details
Dreamfolks Services IPO Date: 24 August 2022- 26 August 2022
Dreamfolks Services IPO Price band: Rs 308 – Rs 326
Dreamfolks IPO Issue Size: Rs 562.10 crore (Offer for sale of 17,242,368 Equity shares)
Reservation: QIB(Qualified Institutional Bidders) 75%, Retail (RII) – 10%, NII 15%
Minimum Investment: Rs 14,996
Bid lot: 46 shares, and in multiples of 46 shares maximum 2 lakh invest as individual.
Dreamfolks Services IPO: Objects of the Issue
The company will not directly receive any proceeds from the Offer and the entire Offer Proceeds will be received by the Selling Shareholders, in proportion to the Offered Shares sold by the respective Selling Shareholders as part of the Offer, Achieve the stock exchange benefits.
About DreamFolks Services Limited
- DreamFolks Limted is a dominant player and India’s largest airport service aggregator platform, an incubator of the industry with its unique, capital-efficient, asset-light business model.
- It provides services to all the Card Networks operating in India including Mastercard, Visa, Diners/Discover, and RuPay.
- DreamFolks limited carefully crafted a service proposition and a tech platform to provide DreamFolks clients the option of offering a wide-ranging bouquet of services to their end customers as part of their customer engagement and loyalty management programs.
- The company also provides many types of other services like door-step to the airport, within the airport, and again from the airport to the door-step at the destination including Lounges, Food and Beverage, Airport Transfer, Spa, Meet and Assist, Transit Hotels/Nap Room access, and Baggage Transfer.
- DreamFolks limited has 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, as of March 31, 2022.
They are a dominant player in the hospitality industry with a share of over 80% in the domestic lounge access market in India.
DreamFolks Services Limited IPO: A Diversified List of Services Offered
Below are DreamFolks’ top services:
Lounge Access: The company has provide 100% coverage of operational lounges in Indian airports, and they offer a unique value proposition to clients by enabling access to consumers to a network of all operational airport lounges in India.
Food and Beverage offerings: They have tied up with various entities to facilitate access to around 57 restaurants/F&B outlets at 18 airports across India, as of March 31, 2022.
Spa Services: As part of their focus on making air travel as enjoyable and relaxing as possible, consumers can avail of specified massage therapies such as head, neck, and shoulder massage, and foot reflexology.
Meet and Assist: They facilitate end-to-end assistance to the consumers at the airport. The services are available at select airports to consumers at arrival and departure terminals of select airports in India.
Airport transfer services: DreamFolks limited facilitate airport transfer – airport ‘pick-up and drop’ facilities in 47 cities airport across India and in 145 cities outside India, as of March 31, 2022.
DreamFolks IPO: Industry Outlook
- The number of lounges is expected to grow at a 7% CAGR between the period 2022-2040. As of March 2022, the number of airport lounges in India was 54, and this is expected to grow to around 204 lounges by 2040.
- An increase in passenger traffic and growth in demand within the air travel industry is expected to boost the market growth.
- Tier II airports are expected to drive the growth of new lounges. This is due to the lower rates and increases in traffic from these airports.
DreamFolks IPO: No Listed Peers
The company operates in an industry that is in its nascent stages. This unique company Therefore, there are limited numbers of operators in this industry and there are no listed peer companies.
DreamFolks Services IPO: Key Financials Details
- The revenue from operations has decreased from Rs 367.04 crore during financial year 2020 to Rs 108.11 crore during FY2021 to Rs 283.99 crore during FY2022. The revenue has declined because of Covid-19 Coronavirus and its impact on the airline industry and related industries.
- During the same financial period, the company’s profit After tax decreased from Rs 31.68 crore in FY2020 to Rs (1.45) crore in FY2021 to Rs 16.25 crore in FY2022.
- EBITDA decreased from Rs 45.85 crore in Financial Year 2020 to Rs 24.04 crore in FY2022. The EBITDA margins for FY2020, FY2021, and FY2022 was 12.47%, 1.94%, and 8.76% respectively.
- The return on capital employed was 61.48%, 63.46%, 0.74%, 23.99% in FY2019, FY2020, FY2021 and FY2022, respectively.
- The average revenue per passenger has increased from Rs 752.14 in Financial Year 2020 to Rs 800.28 in FY2022.
DreamFolks Services Limited IPO Review: What is its Growth Potential?
Increase wallet share with existing company clients: The company will focus on increasing its wallet share with existing Clients Customer by identifying cross-selling opportunities that their diversified set of services offers, growth the business.
Continue to maintain 100% coverage of airport lounges in india: The company plans to consistently establish new relationships or extend existing relationships as and when the opportunity arises to capitalize on the expected growth in all india airport lounges driven by inter alia the growing air traffic and passenger traffic, development of new airports, and government initiatives.
Expand to newer sectors company services: They also want to focus on customer or clients engagement and loyalty solutions for Corporate Clients and build specific solutions for, amongst others, loyalty companies, e-commerce companies, companies in the hospitality service sector, new-age digital companies with advance technology, and neo banks.
Expand company client base: They intend to penetrate deeper into the existing hospitality sectors that they cater to by expanding the client base. They plan to increase the number of customer in the banking, telecommunications, OTA, and airlines sector.
DreamFolks Services IPO Review: What are the Risk Involved?
Company Dependency on relationships with card networks: The company’s success is dependent on its long-term relationships with card networks, financial institutions and card issuers which on average contribute 98.98% of its total revenue from operations. It exposes them to risk emanating from the inability to retain their established card networks and card issuers companies as their clients.
Company Business is dependent on the travel industry: Almost all of their revenue is derived directly from the use of the various services at airports by passengers from traval. They are inordinately reliant on the airway travel industry for business. Any downturn in the travel industry and in the air travel industry will adversely impact its financials, Company revenue impact.
A limited number of clients: They are heavily reliant on a few clients, and they derive a significant part of their revenue from lounge access-related services and from select clients. Its top 5 Clients on average contributed 84.91% of total revenue during FY2022, FY2021, and FY2020.
DreamFolks Services Limited IPO date: When does it open for subscription?
DeamFolks Services opens for subscription on Wednesday 24 August 2022 and closes on 26 August 2022.
DreamFolks Services IPO issue size: How big is this IPO?
The company is coming with its IPO with a total size of Rs 562.10 crore with only an Offer for Sale. DreamFolks Limited is a dominant player and India’s largest airport service aggregator platform.
How to apply for DreamFolks Services IPO?
You can apply for DreamFolks Services on the Paytm Money app. Download the app from AppStore and PlayStore and apply using the app. Click here to download app.
What is the lot size for DreamFolks Services IPO?
You can apply for DreamFolks Services IPO in multiples of 46 with a minimum investment of Rs 14,996 one lot. Maximum investment in IPO for individual is 2 lakh.
When will DreamFolks Services IPO allotment happen?
The finalization of the Basis of Allotment for DreamFolks Services IPO will be done on Thursday September 1, 2022. If allotted, the shares are expected to be credited to your Demat account on 5 September 2022.
When is DreamFolks Services IPO going to get listed?
The exact date is not available. The tentative date for listing is Tuesday 6 September 2022.
When is Dreamfolks Services IPO listing?
The Dreamfolks Services IPO shares are proposed to list on Sep 1, 2022 at BSE, NSE. The actual listing date not confirmed will be announce by the exchange.
When is Dreamfolks Services IPO coming?
The Dreamfolks Services IPO opens on Aug 24, 2022 and closes on Aug 26, 2022.