Dreamfolks Services' IPO oversubscribed on 1st day

24 Aug 2022 , 03:02 PM

The first day of bidding for the initial public offering (IPO) of airport service aggregator platform Dreamfolks Services began on Wednesday, August 24, 2022, and it was quickly oversubscribed.

At 10 am, the issue became up for public subscription. As of 1:36 pm, 1.05 times have subscribed. Data from the National Stock Exchange (NSE) showed that it received total bids for 99,483,328 shares across both stock exchanges versus 94,833,302 shares on offer.

The Dreamfolks Services first public offering, worth Rs562.1 crore, will accept subscriptions through Friday, August 26, 2022, and the price range for the business has been set at Rs308—326 per share.

According to the information in the red herring prospectus, the Dreamfolks Services IPO is purely an offer for sale of up to 1.72 crore (1,72,42,368) equity shares by the promoters Liberatha Peter Kallat, Mukesh Yadav, and Dinesh Nagpal; the firm will not receive any funds from the offer (RHP).

The largest airport service aggregator platform in the nation, Dreamfolks Services, enables improved airport experiences for travelers through a technology-driven platform. With the use of a single technological platform, our asset-light business model connects card networks, card issuers, and other corporate clients with numerous airport lounge operators and other service providers for the aviation industry.

According to the company’s RHP, “We facilitate access for customers of clients’ (consumers) to the following airport-related services I lounges, (ii) food and beverage, (iii) spa, (iv) meet and assist, (v), airport transfer, (vi) transit hotels/nap room access, and (vii) baggage transfer (collectively, the services).

As of March 31, 2022, Dreamfolks Services had coverage in 54 functioning airport lounges, or 100% of airport lounges in domestic and international terminals. Additionally, as of March 31, 2022, the business held the exclusive right to grant access to 12 domestic lounges spread across 11 airports in India, accounting for about 22.22 percent of all access to domestic lounges for cards issued in India.

Additionally, according to the RHP referencing the F&S Report, the company served roughly 68% of the total lounge traffic in volume across all lounges in Indian airports (including the domestic and international lounges) for the financial year 2021—22.

Qualified institutional buyers (QIBs) will receive three-fourths of the issue size of Dreamfolks Services’ initial public offering (IPO), followed by non-institutional investors (15%) and retail investors (10%).

Data from the stock markets showed that on Tuesday, Dreamfolks Services raised close to Rs 253 crore (Rs 2,52,94,55,516) from 18 anchor investors in exchange for 77,59,066 equity shares priced at Rs 326 each.

Along with Smallcap World Fund, Aditya Birla Sun Life Mutual Fund (MF), Sundaram MF, Kuber India Fund, Saint Capital Fund, PNB Metlife India Insurance Company, Societe Generale, BNP Paribas Arbitrage, Segantii India Mauritius, and Quant MF, the anchor investors also include Societe Generale, BNP Paribas Arbitrage, Segantii India Mauritius, and Quant MF.