Dreamfolks Services IPO to open Wednesday- Know all the details!

Dreamfolks Services IPO to open Wednesday, 24th August

 IPO to open Wednesday

Dreamfolks Services is India’s largest airport service aggregator platform. It helps the passengers access services like F&B, lounges, meet and assist, spa, airport transfers, room access, baggage transfers, etc. It started as an airport lounge aggregator, but now it has expanded to become a full-service aggregator for airports. The asset-light business model integrates global card networks and corporate clients. The firm offers a unified technology platform. 

Related: All about IPOs in India

IPO of Dreamfolks Services

The company's IPO will open on 24th August (Wednesday) and close on 26th August (Friday). The price band of the issue is Rs 308 to Rs 326. Anchor investor bidding will open on Wednesday as well. The firm is not offering any fresh shares, and the entire issue is an offer for sale by the firm's promoters. The promoters will be selling 1.72 crore equity shares in the firm. This represents 33% of the paid-up capital of the company.

As of Tuesday, the grey market premium of the shares is Rs 55 per share. The listing is expected to be at a premium, and the demand for the IPO is expected to be high. The shares will list on the NSE and BSE on 6th September (Tuesday). The book-running lead managers of the IPO are Motilal Oswal Investment Advisors and Equirius Capital. The registrar of the initial share sale is Link Intime India Private Ltd, and you can view the allotment status on the firm's website.

As of the end of last financial year, the company had 50 clients, including card networks and card issuers. The asking PE multiple for the company is 104.82, which looks high on paper. The company's revenue increased at a CAGR of 55% from FY17 to FY20. After that, there were some disruptions due to the covid pandemic. The annual revenue in FY20 was Rs 367.04 crores. In FY22, the revenue was lower at Rs 283.99 crores. The net profit of the firm was Rs 16.25 crores. Thus, the company's high growth might justify the high PE valuations.

The IPO, which opens on Wednesday, has 75% reservation for QIBs, 15% for HNIs and 10% for retail investors. The entire offer is an offer for sale, and no proceeds will go to the company. Looking at the GMP, you will be tempted to subscribe if you are looking for listing gains. Also, the asset-light model looks good for the long-term, and the high revenue growth might provide you with good returns in the long run. Here's how to find If your IPO is rightly valued?

Dreamfolks Services Limited IPO - Apply or avoid?

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