DreamFolks Services IPO : Key Highlights and Information

DreamFolks Services Limited is one of the largest airport service providers in India. The company provides a unique technology driven platform and its also a capital efficient platform. The company provides its services to all the card holders of VISA, Rupay Mastercard, Diners/Discovers etc. It also provides services to the customers who have cards from Axis Bank Limited, ICICI Bank Ltd., HDFC Bank Limited, SBI Payment and Card Services Limited and Kotak Mahindra Bank Ltd. The company runs a complete end to end services for easing the travel of customers. This includes Lounge services, Airport Pick up and Drop Services, Meet and Assist, Spa and Wellness, Airport Transfer, Baggage Transfer and Transit Hotels. 

DreamFolks has a huge presence both in India and in the World. The company has more than 1416 touch points overseas and 244 touch points in India. The market share for the company is also kind of monopolistic. Out of the 75 Lakh Pax 48.8 availed the services through DreamFolks. 

IPO DETAILS

DreamFolks Services IPO is set to launch on 24th Aug, 2022. The subscription timeline extends till 26th Aug, 2022. The size for the IPO is 562.10 Crore Rs.. Shares issued through Offer For Sale are worth Rs. 562.10 Crore Rs. No shares are issued through Fresh Issue mode. The lot size is 46 shares and the price range is 308 Rs. – 3266 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 2 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	24th Aug, 2022
CLOSING DATE FOR IPO	26th Aug, 2022
ISSUE TYPE	Book Built Issue
Face Value per share	2 Rs. per share
IPO price band	308 Rs. – 326 Rs.
LOT SIZE	46 shares
MINIMUM ORDER QUANTITY	46 shares
ISSUE SIZE	562.10 Crore Rs.
OFFER FOR SALE	562.10 Crore Rs.
FRESH ISSUE	No shares
LISTING AT	NSE, BSE
LISTING DATE	6th Sept, 2022

IMPORTANT DATES

IPO OPENING DATE	24th Aug, 2022
CLOSING DATE FOR IPO	26th Aug, 2022
IPO ALLOTMENT DATE	1st Sept, 2022
REFUNDS	2nd Sept, 2022
DEMAT A/C CREDITED ON	5th Sept, 2022
IPO LISTING DATE	6th Sept, 2022

DreamFolks Services IPO begins for subscription from 24th Aug, 2022. The IPO subscription would continue till 26th Aug, 2022. The allotment status for the shareholders who applied would come on 1st Sept, 2022. The refunds for the ones who did not get allotment would be initiated on 2nd Sept, 2022. The DEMAT accounts of shareholders would be credited on 5th Sept 2022. The listing of the company would be accompanied on 6th Sept, 2022.

Lead Managers And Promoters

 

The promoters of the company are Dinesh Nagpal, Liberatha Peter Kallat and Mukesh Yadav. The promoter holding pre-IPO is 100%. Post-IPO the same will go down by 67%.

The lead managers are :

• Motilal Oswal Investment Advisors Private Limited
• Equirus Capital Private Limited

The minimum lot size for the company is decided at  46 shares. This holding accounts to  14996 Rs.. The maximum lot size is decided at 598 shares. This amounts to 194948 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	46 shares	14996 Rs.
Maximum	598 shares	194948 Rs.

OBJECTIVES FOR THE IPO

• The entire amount of proceedings will be exchanged between the selling shareholders and the buying shareholders. Hence the object is to process the Offer for Sale.

COMPANY FINANCIALS

Particularly (in Million Rs.)	2021-22	2020-21	2019-20
ASSETS	168.68	122.5	137.76
Revenue	283.99	108.11	367.81
PAT	16.25	-1.5	31.68

The financials of the company are not much impressive. The assets are definitely increasing by time from 137.76 Crore Rs to 168.68 Crore Rs. The revenues however are not increasing by the same. The Profitability of the company is also not increasing with the increase in the amount of assets.

PROS

• The company has an early mover advantage. It has access to all the 50 lounges present currently in India.
• As of now the company is worth more than 82.6 Crore Rs. which was 65 Crore Rs in 2020.
• The increased product line for including the end to end customer services can add up to the profitability of the company. Initially the company started operating as a sole airport services aggregator but now it has also indulged into providing end to end services to its customers for enabling a comfortable travel experience.
• DreamFolks has a uge client base of more than 50 Card issuers including Card Networks and others.

CONS

• The company’s profitability has been reducing by time due to increase in competition.

DreamFolks Services IPO APPLICATION PROCESS WITH ZERODHA

It is very easy to apply for an IPO now if you have a DEMAT account with Zerodha. Follow the steps below for the same :

1. Logging into Zerodha console through its website or KITE platform.
2. Clicking the IPO link present in the Portfolio section.
3. Click the DreamFolks Services IPO button and press the BID button.
4. Entering the details asked for like UPI ID, Quantity and price.
5. Submit the application form for the IPO.
6. Visiting the application of UPI for approving the transaction.

Now, applying for an IPO online is possible with most of the Discount and online brokers.