The three-day initial public offering (IPO) of airport service aggregator platform DreamFolks Services will open for subscription on August 24. The company, which provides airport-related services such as lounge access, transit hotels, baggage transfer, food and beverage, spa services, airport transfer services, intends to raise ₹562 crore through the public listing of shares on the domestic exchanges. The share of the company is expected to make its debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 6.
The issue is completely an offer for sale (OFS) of 1.72 crore equity shares by the promoters. The OFS comprises up to 65.31 lakh equity shares by Mukesh Yadav, up to 65.31 lakh shares by Dinesh Nagpal, and up to 41.8 lakh shares by Liberatha Peter Kallat.
As per the shareholding pattern available in the prospectus, Liberatha Peter Kallat, the chairperson and managing director of the company, holds 33% shareholding in the company. Non-executive directors Mukesh Yadav and Dinesh Nagpal own 34% and 33% shares, respectively.
The price band for the offer has been fixed at ₹308 to ₹326 per equity share. Bids can be made for a minimum of 46 equity shares and in multiples of 46 shares thereafter. The floor price is 154 times the face value of the equity shares and the cap price is 163 times the face value of equity shares.
As the issue is completely an OFS, all the IPO proceeds will go to the existing shareholders. The company will not receive any capital from the issue. As per the offer document filed with SEBI, the object of the offer is just to carry out the sale of shares and derive the benefits of listing the equity shares on stock exchanges.
DreamFolks, a dominant player in the airport lounge aggregation industry in India, reported a profit at ₹16.25 crore for the year ended March 2022, against a loss of ₹1.45 crore in the previous year impacted by the second wave of Covid-19 pandemic. The company had posted a profit of ₹31.68 crore in FY20.
Consolidated revenue from operations rose to ₹282.50 crore as compared to ₹105.63 crore in the previous fiscal and ₹367 crore in FY20. The lounge fee is the major source of revenue for the company, contributing 98.68% of revenue in FY22, 97.25% in FY21, and 98.82% in FY20.
Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited are the book running lead managers to the offer.
DreamFolks is India's largest airport service aggregator platform and started operations in 2013 by facilitating lounge access services for the consumers of Mastercard. Today, the company provides services to all the card networks operating in India, including Visa, Mastercard, Diners/Discover and RuPay. As of March 31, 2022, 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. It offers access to around 57 restaurants and food and beverage outlets at 18 airports in India and provides pick-up and drop facilities in 47 cities across India and 145 cities outside India.
Leave a Comment
Your email address will not be published. Required field are marked*