10 things to know about the IPO of DreamFolks Services

23 Aug 2022 , 10:22 AM

The second initial public offering to be made in August is DreamFolks Services, particularly in light of the improvement in secondary market confidence. Last week, Syrma SGS Technology finished its public offering.

Although there was some retracement over the past two days, the benchmark indices recovered more than 18% from their June lows.

1. IPO Schedule

The first public offering will begin accepting subscriptions on August 24 and close on August 26. On August 23, the anchor book, if there is one, which is a subset of qualifying institutional purchasers, will be available for one day.

1. Price range

The company has set a price range of Rs308 and Rs326 per share for the offer.

1. The IPO size

More than 1.72 crore equity shares, all of which are being offered for sale by the company’s promoters, will be part of DreamFolks’ initial public offering (IPO) and make up 33% of the company’s paid-up stock after the offering.

Each of Mukesh Yadav and Dinesh Nagpal will sell 65.31 lakh equity shares, while Liberatha Peter Kallat will sell 41.79 lakh shares.

The issue will bring the corporation more money at higher prices.

1. The IPO objective

The company will not make any money through the IPO because it is an offer for sale issue. The selling stockholders will receive all of the money, excluding issuing expenses.

Thus, the sole purpose of the offer is to execute a sale with the advantages of listing the equity shares on stock markets.

1. Investors’ Quota in the IPO

A maximum of 75% of the issue size is set aside for approved institutional buyers, including anchor book, with the remaining 15% going to non-institutional investors.

1. Lot Size

Investors may place a minimum bid of 46 equity shares and then bid in multiples of 46 shares.

Therefore, retail investors may apply for shares valued at a minimum of Rs14,996 per lot and a maximum of Rs1,94,948 for 13 lots. They could put up as much as Rs2 lakh in the offer.

1. Business Profile

It is claimed to be the largest airport service aggregator platform in India, according to DreamFolks Services. Its asset-light business model incorporates international card networks active in India, card issuers for credit and debit cards, and other corporate clients like airline corporations.

The business began its actual operations in 2013 by facilitating lounge access services for Mastercard customers, and it now offers services to all of India’s card networks. It had 50 clients as of March 2022, including many of India’s well-known card issuers and card networks.

The business offers a range of airport-related services, such as lounges, food and drink, spa treatments, meet and greet, airport transfers, and baggage transfers.

1. Money matters

For the fiscal year that ended in March 2022, DreakFolks reported a profit of Rs16.25 crore, up from a loss of Rs1.45 crore the year before due to the second COVID wave, but significantly lower than the profit of Rs31.68 crore in FY20.

Due to a low base year, the combined revenue from operations for FY22 was Rs282.50 crore, up 167.4% from the previous year’s revenue of Rs367 crore.

The lounge fee provided 98.68%, 97.25%, and 98.82% of its operating revenues in FY22, FY21, and FY20, respectively.

1. Promoters

Each of the promoters, Liberatha’s Peter Kallat and Dinesh Nagpal own 33% of the company’s shares, while Mukesh Yadav owns the remaining 34%.

Liberiatha,  the company’s Chairperson and Managing Director; has extensive knowledge of the hospitality sector. She has experience working for Indian and international multinational corporations, including the Indian Hotels Company.

Mukesh Yadav and Dinesh Nagpal, two more promoters, are Non-Executive Directors on the board.

On the board, Sharadchandra Damodar Abhyankar, Mario Anthony Nazareth, Aditi Balbir, and Sudhir Jain are Independent Directors, while Balaji Srinivasan serves as an Executive Director.

1. Dates of Share Allotment and Listing

By September 1, DreamFolks will have finalized IPO allotment. After that, the refunds for unsuccessful investors will be credited to their bank accounts by September 2, and qualifying investors will receive their shares in their demat accounts by September 5.

On September 6, it will be listed on the BSE and NSE.

The issue’s book-running lead managers are Equirus Capital and Motilal Oswal Investment Advisors, and Link Intime India is the offer’s registrar.