Dreamfolks Services IPO Launches This Week, August 24-26

  • The company began operations in 2013 facilitating airport lounge access services and has now grown into an end-to-end technology solutions provider.
  • The ₹500 crore public offering is a complete offering for sale by the promoters at a price range of ₹308 to ₹326 per share.
  • Covid-19 has had a negative impact on the airline industry and as a result, the airport service provider is still recovering from the pandemic downturn.

Airport services aggregation platform DreamFolks Services is set to open its initial public offering (IPO) on August 24 and will close on August 26.

The IPO is a complete offering for sale by the promoters and will raise ₹560 crore with a price range of ₹308 to ₹326 per share.

The airport services aggregator began operations in 2013 facilitating airport lounge access services and has now grown into an end-to-end technology solutions provider. Covid restrictions have severely affected the airport service provider’s finances, but it is now recovering from lows as the travel industry has recovered and is busy as pre-covid.

“The airline industry has in the recent past been rocked by the COVID-19 pandemic which has negatively impacted our operations. In addition, the travel industry is also generally affected by various factors such as rising fuel prices, government policies applicable especially to the airline industry, bankruptcy of airlines, etc. Accordingly, any downturn in the travel industry, in general, and in the airline industry, in particular, could negatively impact our results of operations and financial condition,” the company said in its statement. misleading flyer.

According to the Directorate General of Civil Aviation (DGCA), before covid over the past five years between 2015 and 2019, the CAGR for the domestic air transport industry was 12%. However, due to the outbreak of covid-19, the Indian aviation market is expected to experience a linear recovery.

Details Revenue Profit
EX22 ₹283crore ₹31,000,000
FY21 ₹108,000,000 ₹ -1.45 crore
FY20 ₹367,000,000 ₹16.25 crore

Additionally, the company believes that if the impact of Covid-19 is prolonged or more severe than expected, it could face a deleterious impact on its business.

The Company provides access to various other services such as food and beverage offerings, spa services, “meet and help” services, airport transfer services, access to transit hotels/ siesta and baggage transfer.

The global aviation sector that had been hit by the shutdowns is now in the recovery phase. “Global airlines are considering resuming their specially conducted long-haul routes. This also applies to the Indian domestic market; interestingly, a few Tier 2 and Tier 3 airports in India have exceeded pre-COVID traffic figures,” the company said in its RHP.

Currently, it has ties with Visa, Master Card, Diners/Discover and RuPay card networks operating in India. Other key customers include ICICI Bank, Axis Bank, Kotak Mahindra Bank, HDFC Bank (with respect to the debit card salon program) and SBI Cards and Payment Services.

DreamFolks is heavily dependent on cards in circulation and the issuance of new credit and debit cards. Out of approximately 5.2 million passengers using lounges in India, more than 80% of passengers use credit or debit cards to access domestic lounges.

In addition, a strong economic recovery is expected which will result in increased travel by airways and airport services. The latest UNWTO (United Nations World Tourism Organization) panel suggests that the tourism sector is set to experience increasing growth and a strong recovery as the economic and COVID situation improves.

Here are some of the important details of the IPO:

Problem details
Price range ₹308-₹326
IPO opening date August 24
IPO closing date August 26
Date of grant September 1st
Start of refunds September 2
Stock credit to demat account September 5
IPO date September 6
Minimum lot 46

Motilal Oswal Investment Advisors Ltd and Equirus Capital Private Ltd are the lead IPO managers.

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