Dream folks Services is India’s largest airport service aggregator platform, providing passengers with an enhanced airport experience via a technology-driven platform. On a unified technology platform, its asset-light business model integrates card networks, card issuers, and other corporate clients with various airport lounge operators and other airport-related service providers.
Dream Folks IPO – Overview
Shares of the largest airport service aggregator platform Dream Folks Services made a strong debut on 6th August, trading at a premium of more than 56% to their issue price. The stock was listed at Rs 508.70 per share on the NSE, representing a gain of 56.04%from its offer price of Rs 326.00, while it opened at Rs 505.00 on the BSE, representing a gain of 54.91 % from the issue price.
Earlier on the last day of the subscription, August 26th, Dream Folks IPO was subscribed to 56.68 times. The issue received bids for 53,74,97,212 shares versus the offer of 94,83,302 shares. Qualified Institutional Buyers (QIBs) received 70.53 times subscription, the category for retail investors was bid 43.66 times and non-institutional investors (NIIs) 37.66 times.
The IPO was entirely an offer for sale (OFS) of 1,72,42,368 equity shares by promoters Liberatha Peter Kallat, Dinesh Nagpal and Mukesh Yadav. The public offering will account for 33% of the company’s post-offer paid-up equity share capital.
| IPO Issue Opening Date | 24 Aug 2022 |
| IPO Issue Closing Date | 26 Aug 2022 |
| Face value | INR 2 Per Share |
| IPO Issue Price | INR 308 – 326 per share |
| IPO Listing Price | 508.7 |
| Document Links | DRHP, RHP |
| IPO Listing At | NSE, BSE |
| Offer for Sale | 1,72,42,368 Shares |
| IPO Size | INR 562 Cr |
Dream Folks IPO –Industry Overview
According to the World Economic Outlook (WEO) released by the International Monetary Fund (IMF) in April 2022, the global economy grew by 6.1% in CY 2021 and is expected to grow by 3.6% in CY 2022.The global aviation sector took a hit because of the COVID-19-induced lockdowns, but the recovery phase has begun. Global airlines intend to resume their long-haul, specially driven routes. This is also true for the Indian domestic market; it is worth noting that a few Indian Tier-2 and Tier-3 airports have surpassed pre-COVID traffic numbers.
Growing markets in India and South Asia are some of the key drivers of growth in the Asian aviation sector. South Asia is expected to have a 6.6% passenger growth rate until 2040. Because of India’s presence, the passenger growth prospects in this region are thought to be promising. The Indian economy is expected to grow at a CAGR of 5.1% between 2021 and 2040, with demographic factors and a high propensity to travel within India accelerating growth in the Indian aviation market
Airport infrastructure policies and the imposition of regulations to support the aviation sector are expected to be key drivers for this market. The implementation of Project UDAN is expected to be one of the key contributing factors to the growth of Indian Aviation Industry.
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Dream Folks IPO – Company Overview
Dream Folks is a dominant player and India’s largest airport service aggregator platform, enabling passengers to have a better airport experience by leveraging a technology-driven platform. Dream Folks provides airport-related services such as (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).
Dream Folks began operations in 2013 by facilitating lounge access services for Mastercard consumers and now provides services to all of India’s Card Networks, including Visa, Mastercard, Diners/Discover, and RuPay, as well as many of India’s prominent Card Issuers, including ICICI Bank Limited, Axis Bank Limited, Kotak Mahindra Bank Limited, and many more. Dream Folks have evolved from an airport lounge access aggregator to an end-to-end technology solutions provider, designing and delivering services that improve the airport experience.
Dream Folks IPO – India’s Air Traffic Growth
The CAGR for the domestic air travel industry was 12% between 2015 and 2019. However, with the onset of COVID-19, the Indian aviation market is expected to recover in a linear fashion.
The CAGR for international air travel was 6% between 2015 and 2019. India’s international air passenger traffic increased from 18.42 million in 2015 to 24 million in 2019. In a normal scenario, the number of international air passengers in 2019 would have surpassed 25 million (2018 figures). However, COVID-19 had an impact on international air travel in the second half of 2019 and will continue to do so in 2020, 2021, and 2022. This is a temporary decrease in international air travel passengers, and the market is expected to return to pre-COVID-19 levels by 2024-25.
Dream Folks IPO – Valuation & Margins
Dream Folks IPO – Management
- Liberatha Peter Kallat, company’s Promoter and Managing Director, is 46 years old. On November 30, 2021, she was appointed as our Company’s Chairperson. She graduated from Andhra University with a bachelor’s degree in science. She has been with our company since 2014 and is responsible for our company’s strategy and overall management.
- Mukesh Yadav, 51, is the Company’s Promoter and Non-Executive Director. He has worked for our company since 2011. He has over 20 years of experience and has served on the boards of Whistling Heights Resorts Private Limited, Urban Land Management Private Limited, and Yashna Infratech Private Limited.
- Dinesh Nagpal, 56, is the Company’s Promoter and Non-Executive Director. He graduated with honors from Maharshi Dayanand University in Rohtak. He has worked for our company since 2011. He has been involved with the ‘Amangani Peaceful Homes’ residential project in Rewari, Gurugram.
- Dream Folks has industry experience from executive directors like Balaji Srinivasan and independent directors like Sharadchandra Damodar Abhyankar, Aditi Balbir, and Sudhir Jain.
Dream Folks IPO – Proceedings
The book build issue is a 100% offer for sale (OFS), which means that Dream folks’ IPO proceeds will go directly to the promoters’ pockets. The public offering will account for 33% of the company’s post-offer paid-up equity share capital.
Dream Folks IPO – Strengths
- As on March 31, 2022, Dream Folks Service Limited has an exclusive arrangement at 12 lounges across 11 airports in India.
- Dream Folks offers consumers access to 1,416 touchpoints (service fulfilment points) in 121 countries, including India
- Its clients include some of India’s largest card issuers, such as ICICI Bank, Axis Bank, Kotak Mahindra Bank and many more.
- Around 34% of the lounges in India have been associated with Dream Folks for over six years
- Dream folks is not required to incur direct customer acquisition cos as it is borne by its client partners
- Experienced promoters and management team with strong domain expertise
Dream Folks IPO – Risk & Threats
- Any downturn in the travel industry, such as Covid, can have a negative impact on its business.
- In FY22, the top five clients accounted for 81.8% of revenue. The industry is highly dependent on loyal clients.
- Dream Folks is up against large global players with extensive experiences, such as Priority Pass who is a global leader in the industry.
Dream Folks Registrar
Link In time India Private Ltd
Phone: +91-22-4918 6270
Email: dreamfolks.ipo@linkintime.co.in
Website: https://linkintime.co.in/
Company Contact Information
Dreamfolks Services Limited
501, Tower 2, Fifth Floor,
Worldmark, Sector-65,
Gurugram – 122 018
Phone: +91 0124 4173 560
Email: compliance@dreamfolks.in
Website: https://www.dreamfolks.in/
Dream Folks Services IPO Lead Manager
Equirus Capital Private Limited
Motilal Oswal Investment Advisors Pvt Ltd
