DreamFolks IPO | Motilal Oswal

DreamFolks IPO

 

Opening Date

24, Aug 2022

Closing Date

26, Aug  2022

Face Value

₹2 per equity share

IPO Price Band

₹308 to ₹326 per equity share

Minimum Order Quantity

46 Shares

Issue Size

₹562.10 Cr

 

The volatility in the market in recent times has kept new companies at the bay. Many companies, although have received a green-signal from SEBI have put a halt in the release of their IPOs, fearing the negative sentiments around the market. The news of inflation, recession, growing war-like conditions has brought turmoil into the minds of the investors, who are skeptical on investing in new-age companies. After the opening of Syrma SGS Technologies Ltd, the next IPO in the queue is Dreamfolks Services IPO Ltd which is going live on Aug 24, 2022 and will be open for subscription until Aug 26. Let’s dive deep into the details to know if this IPO is investment worthy or not!

About Dreamfolks Services

DreamFolks is a dominant player and India's largest airport service aggregator platform, an incubator of the industry with its unique, asset light, capital efficient business model. The company provides services to all the Card Networks operating in India including Visa, Mastercard, Diners/Discover and RuPay; and many of India's prominent Card Issuers including ICICI Bank Limited, Axis Bank Limited, Kotak Mahindra Bank Limited, HDFC Bank Limited (in respect of debit card lounge program) and SBI Cards and Payment Services Limited. The company offers a wide-ranging bouquet of services to their end customers, as part of their customer engagement and loyalty management programs. It provides with access to a host of services: from 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, Spa, Meet and Assist, Airport Transfer, Transit Hotels/Nap Room access, and Baggage Transfer.

DreamFolks' dominant position is underpinned by its estimated market share of over 95% in Fiscal 2022 of all India issued Card Based access to domestic lounges in India. Through its partnerships with other service providers, the company 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 at March 31, 2022.

Below given are the financials of the company:-

Particulars

As of and for the Financial Year ended March 31

2021

2020

2019

Equity share capital

10.5

4.8

4.8

Net Worth

82.2

64.3

65.5

Total Borrowings

1.3

2

3.1

Revenue from Operations

282.5

105.6

367

EBITDA

24

2

46

Profit/Loss After Tax

16.3

-1.5

31.7

Earnings Per Share

2.98

-0.28

6.06

Net asset value per Equity share

15.7

12.3

12.5

 

  • DreamFolks IPO Ltd details 

Let’s now move onto the main part of this article. Here, we’re going to be looking at some of the most important details of this upcoming IPO viz - DreamFolks IPO Ltd date and its share price.

  • DreamFolks IPO Ltd date 

According to the Red Herring Prospectus filed by the company, the public issue of the equity shares is going live from 24th, August and will be available for subscription until 26th August 2022.

  • DreamFolks IPO Ltd issue size 

The total issue size of the latest DreamFolks IPO Ltd is declared to be ₹562 crores. This is a total offer for sale of 17,242,368 shares. 

75% of the offer is reserved for QIBs (Qualified Institutional Buyers), 10% for Retail Investors, and the Balance 15% for NIBs (Non-Institutional Investors).

  • DreamFolks IPO Ltd share price

The price band of the company’s upcoming IPO is declared to range between ₹308 to ₹326 per equity share

  • DreamFolks IPO Ltd listing

Since the IPO of DreamFolks IPO Ltd is from the mainboard, it would be listed on both - the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE)

  • DreamFolks IPO Ltd objectives

The net proceeds of the Offer for Sale, i.e. gross proceeds of the Issue less the offer expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilized in the following manner:

- To carry out the Offer for Sale of up to 17,242,368 Equity Shares by the Selling Shareholders

- To enhance visibility and brand image

- To provide liquidity to shareholders

  • DreamFolks IPO Ltd Strengths

- Dominant player in the airport lounge aggregation industry in India

- Asset light business model with a strong track record of delivering consistent growth

- Ability to capitalize on growing Consumer base with zero consumer acquisition cost

- Proprietary technology platform that ensures scalability

- Indian lounge market is expected to grow at 4X times of the current market size and to reach 204 lounges by 2040(F&S estimate

  • DreamFolks IPO Ltd risks

- Heavily dependent on the travel industry especially air travel

- Substantially reliant on Card Networks and Card Issuer companies

- Top 5 clients contributed 85% of total Revenue as on FY22

- Potential saturation of Indian markets and requirement of expansion in global markets

Conclusion

If you wish to become a part of this exciting IPO opportunity, you will need to have an online demat and trading account, which will help you get shares of your favorite companies. To get an online DEMAT account for Free*, all you have to do is sign-up with Motilal Oswal and get started.

If you are an existing customer with Motilal Oswal, you can now invest in the IPOs in just one click through UPI payment!

It’s all easy. It’s all good.

 

 

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