India's largest aggregator of airport lounge services will soon be boarding the flight to Dalal Street. Dreamfolks Services' initial public offering is expected to open to subscription on August 24, and close on August 26. The anchor portion for the issue will open for bidders a day prior - on August 23.
Dreamfolks Services is India's largest airport service aggregator platform, powering an enhanced airport experience via technology. The segment is expected to grow rapidly, as India plans to open airports in newer cities. A Frost & Sullivan report quotes that airport services may register a growth of Rs 5,385 crore by FY30, with the number of lounges rising to 295 by 2040.
The business model of Dreamfolks Services is asset-light and integrates global card players, credit card and debit card issuers with airlines and various airport lounge operators. It also manages airlines' loyalty programmes.
Dreamfolks has also bagged contracts from Indian Railways to offer similar services at stations, founder-chairperson and MD Liberatha Peter Kallat told PTI earlier in March. She said, "the Railways has awarded us the contracts to offer our services at the lounges of the New Delhi, Ahmedabad, Ernakulam, Madurai and Sealdah stations. We are working on to launch the services at the earliest." Entering railways is part of the company's planned expansion into newer sectors.
PTI also reported in March that the company was looking at an IPO size of Rs 1,000-1,200 crore. Dreamfolks has now had to cut its offer for sale to 1.72 crore shares from 2.18 crore shares, as it had planned earlier. Through the IPO, the promoters will be looking to sell shares. The public issue consists of upto 65 lakh shares each of Mukesh Yadav and Dinesh Nagpal and upto 40 lakh shares owned by Liberatha Peter Kallat.
The shares allotted are expected to be credited to applicants' demat accounts on September 5, and the company hopes to list on exchanges on September 6. This will be the second IPO in nearly three months, after Syrma SGS Technology closes for subscription on Thursday. Equirus Capital and Motilal Oswal Investment Advisors are the lead managers for the issue.
According to PTI, the airport lounge services facilitated by DreamFolks have also been launched at Phoenix Sky Harbor airport in Arizona USA and also at the Aberdeen airport in Scotland. For FY22, the company reported total income of Rs 283.99 crore as against Rs 108.11 crore a year ago. Net profit for the fiscal stood at Rs 16.25 crore, against a loss of Rs 1.45 crore a year ago.
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