DreamFolks Services IPO: Retail Portion Oversubscribed On Day 1

Airport Service aggregator platform Dreamfolks Services three-day initial public offering (IPO) opened for subscription on Wednesday with a price band of Rs 308-326 apiece. The issue will conclude on August 26.

As per BSE Data, on the first day of the bidding as of 11:40 am, the issue has been subscribed 0.62 times with retail investors’ category fully booked 3.25 times and NIIs 0.11 times.

The company on Tuesday raised Rs 253 crore from anchor investors ahead of its IPO. The company has decided to allot 7.76 crore shares to anchor investors at a price of Rs 326 apiece, aggregating the transaction size to Rs 253 crore, according to a circular on BSE's website.

The IPO is entirely an Offer For Sale (OFS) of up to 1.72 crore equity shares by promoters Liberatha Peter Kallat, Dinesh Nagpal and Mukesh Yadav. The public issue will constitute 33 per cent of the post offer paid-up equity share capital of the company.

The company’s shares are expected to list on leading stock exchanges BSE and NSE on September 6. Market analysts say that the shares of the company are available at a premium of Rs 62 in the grey market today.

DreamFolks Services claimed to be India's largest airport service aggregator platform. It has an asset-light business model which integrates global card networks operating in India, credit card and debit card issuers, and other corporate clients including airline companies.

The company provides airport related services including lounges, food and beverage, spa, meet and assist, airport transfer, and baggage transfer.

DreakFolks clocked a profit at Rs 16.25 crore for the year ended March 2022, against loss of Rs 1.45 crore in previous year impacted by second Covid wave, but down considerably compared to profit of Rs 31.68 crore in FY20.

Consolidated revenue from operations for the FY22 stood at Rs 282.50 crore, increasing by 167.4 percent due to low base in previous year, while the revenue in FY20 was at Rs 367 crore.

The lounge fee contributed a vast majority of its revenues from operations, contributing 98.68 percent in FY22, 97.25 percent in FY21 and 98.82 percent in FY20.