DreamFolks Services is the second initial public offering to be launched in August, especially after revival in the secondary market sentiment. Syrma SGS Technology closed its public issue last week.
The benchmark indices rallied more than 18 percent from June lows, though there was some correction in the last two days.
Here are 10 key things to know before subscribing public issue:
1. IPO Dates
The maiden public offer will open for subscription on August 24 and the closing date will be August 26. The anchor book, if any, which is a part of qualified institutional buyers, will open for a day on August 23.
2. Price band
The company has fixed a price band at Rs 308 and Rs 326 per share for the offer.
3. IPO Size
DreamFolks has launched an initial public offering of more than 1.72 crore equity shares which is completely an offer for sale by promoters, and will constitute 33 percent of the post offer paid-up equity.
Mukesh Yadav and Dinesh Nagpal are going to offload 65.31 lakh equity shares each, while 41.79 lakh shares will be sold by Liberatha Peter Kallat.
At upper price band, the issue will fetch the company Rs 562.1 crore.
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4. Objectives of Issue
As it is an offer for sale issue, the company will not receive any money through IPO. All the funds, excluding issue expenses, will go to selling shareholders.
Hence, the object of the offer is just to carry out the offer for sale with the benefits of listing the equity shares on stock exchanges.
5. Investors' Quota in IPO
Up to 75 percent of the issue size is reserved for qualified institutional buyers including anchor book, 10 percent for retail investors, and the remaining 15 percent for non-institutional investors.
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6. Lot Size
Investors can bid for a minimum of 46 equity shares and in multiples of 46 shares thereafter.
Hence, retail investors are eligible to apply for minimum shares worth Rs 14,996 per lot, and the maximum investment by them would be Rs 1,94,948 for 13 lots. They are allowed to invest up to Rs 2 lakh in the issue.
7. Company Profile
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 started off actual operations in 2013 by facilitating lounge access services for consumers of Mastercard, and now provides services to all the card networks operating in India. As of March 2022, it had 50 clients including the card networks and many of India's prominent card issuers.
The company provides airport related services including lounges, food and beverage, spa, meet and assist, airport transfer, and baggage transfer.
It also claimed that it enjoyed a market share of over 95 percent of all India issued credit card and debit card access to airport lounges in FY22. Additionally, it also accounted for around 68 percent of the overall lounge access volume in India.
8. Financials
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.
9. Promoters
It is 100 percent owned by promoters. Liberatha Peter Kallat and Dinesh Nagpal hold 33 percent shareholding each in the company, and the remaining 34 percent stake is held by Mukesh Yadav.
Liberatha Peter Kallat, the Chairperson and Managing Director of the company, has significant experience in the hospitality industry. She has worked with Indian and global multinational companies such as Indian Hotels Company.
Other promoters Mukesh Yadav and Dinesh Nagpal are Non-Executive Directors on the board.
Balaji Srinivasan is an Executive Director on the board, while Sharadchandra Damodar Abhyankar, Mario Anthony Nazareth, Aditi Balbir, and Sudhir Jain are Independent Directors.
10. Share Allotment and Listing Dates
DreamFolks is going to finalise the IPO shares allotment by September 1. Post which, the refunds will be credited to the bank accounts of unsuccessful investors by September 2 and the eligible investors will receive shares in their demat accounts by September 5.
It will make its debut on the BSE and NSE on September 6.
Equirus Capital, and Motilal Oswal Investment Advisors are the book running lead managers for the issue, while Link Intime India is the registrar to the offer.
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