Dream Folks Services IPO ,August 2022

Dream Folks

Dream Folks Services IPO, to open on August 24, 2022. Read for all details

About Dream Folks Services

Dream Folks is India’s largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging our proprietary technology solutions. They have 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. Dedicated to ensure hassle free operations for clients, consumers and operators. The company uses Hybrid model for card based transactions, wherein digital access could be done through membership card, Client’s banking apps, or Dream Folks mobile Application (DreamFolks App).

Services Provided by Dream Folks Services

  • Lounge Access- It offers a unique value proposition to our Clients by enabling access to the Consumers to a network of all operational airport lounges in India, and other lounges globally.
  • Meet and assist- facilitate end-to-end assistance to the Consumers at the airports including medical meet & assist at select airports in India and globally.
  • Food and Beverage offering- Facilitate access to restaurants / F&B outlets at airports where Consumers can select from curated ‘DreamFolks’ meal ‘combos’.
  • Spa Services-Facilitate access to specified massage therapies at airports.
  • Transit Access/Nap rooms-specialized facilities which allow passengers, particularly transit passengers, access to private rooms / compartmentalised sleeping quarters, with rest-room access.
  • Airport Transfer Services- Pick and drop service

Clients of Dream Folk Services

It has a vast array of card networks, card issuers and Corporate clients

Card Network

  • Diners Club International
  • Mastercard
  • Rupay
  • Visa

Card Issuers

  • Axis Bank
  • Hdfc Bank
  • Kotak Mahindra Bank
  • SBI Cards
  • ICICI Bank

Corporate clients

  • Air Asia
  • Club Mahindra
  • Ease my Trip.com
  • Go First
  • Hettich
  • Indigo
  • Intermiles
  • Vi

Subscription date of Dream Folks Services IPO

Opens on 24 August, 2022 Wednesday

Closes on 26 August, 2022 Friday

Price Band of Dream Folks Services IPO

Price band is of Rs. 308-326 , with issue size of Rs. 562 Cr. making the valuations of market Capitalization of  Rs 1,609 crore to Rs 1,703 crore.

Lot Size of Dream Folks Services IPO

ApplicationLotShareAmount
Minimum146Rs. 14,996
Maximum13598Rs.194,948

Issue break-up of Dream Folks Services IPO

The issue has been reserved for:-

Institutional Buyers75%
Non Institutional buyers15%
Retailers10%

Allotment Date and Listing of Dream Folks Services IPO

Probable Allotment Date:-September 1, 2022

Probable Listing Date:-September 6, 2022

Refunds start from:- September 6, 2022

Grey market premium of Dream Folks Services IPO

According to IPO watch, shares of Dream folk Services were trading at a premium of Rs 85 per share in the grey market. This means that the company’s shares may list at Rs 411 per share against the upper price band of the issue price.

Promoters of Dream Folks Services

  • Mukesh Yadav- 34%
  •  Libertha Peter Kallat – 33%
  • Dinesh Nagpal- 33%

Moats of Dream Folks Services

95% of market share is hold by the company. This means it is a kind of monopoly stock in airport lounge aggregation industry in India. It also enjoys first-mover’s advantage. Company intends to provide lounge services in railways as well which accounts for growth of the company.

Analysis of Dream Folks Services

The company was performing very well before pandemic. Entire one year there was no sales and company posted losses. As soon as pandemic was over and travelling through Airplanes started, company is bouncing back

Its assets are growing every year.

PE according to FY21-22 comes out to be 100, PB=20, which indicates a bit of high valuations.

Return on Networth turns out to be 20%. Company is almost Debt-Free.

If we look at pre pandemic levels, then valuations seems attractive but post pandemic valuations are little bit pricy.

None of the IPO money would be used for upliftment of the company which is a negative point.

Pre IPO Holder’s stake= 100%

Post IPO Holder’s stake will be reduced to 67%

Zerodha

Use the link to open a Demat account in Zerodha

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Disclaimer- All investments and trading in the stock market involve risk. Any decision to place a trade in the financial markets, including trading in stock should only be made after thorough research. Trading strategies or related information mentioned in the article is for informational purposes only. Use your due diligence before investing.

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