Price, Financials, GMP, Should you Invest?


DreamFolks Services IPO Opens Today: As the primary markets are geared for the initial public offering of DreamFolks Services, which is slated to hit Dalal Street on Wednesday, August 24. The airport Service aggregator platform Dreamfolks Services Ltd has fixed a price band of Rs 308-326 for its three-day initial public offering (IPO). The issue will conclude on Friday, August 26. The bidding for anchor investors would open on Wednesday.

DreamFolks Services IPO: Price Band

As per the BSE website, Dreamfolks IPO price band has been fixed at Rs 308 to Rs 326 per equity share.

The company on Tuesday raised Rs 253 crore from anchor investors ahead of its initial share-sale. The company has decided to allot 7.76 crore shares to anchor investors at a price of Rs 326 apiece, aggregating the transaction size to Rs 253 crore, according to a circular on BSE’s website.

DreamFolks Services IPO: Lot Size

Investors can make bids for a minimum of 46 equity shares, and in multiples thereafter. Up to 75 per cent of the total offer is reserved for qualified institutional buyers, and 15 per cent for non-institutional investors. The remaining 10 per cent stake is allocated to the retail investors. The company will not receive any proceeds from the offer.

DreamFolks Services IPO: Share Allotment & Listing

The tentative date for Dreamfolks IPO allotment is 1st September 2022. The public issue is proposed for listing on both NSE and BSE. The tentative date for IPO listing is 6th September 2022.

DreamFolks Services IPO: Financials

As of March 31, 2022, Dreamforks had 50 Clients including the Card Networks and many of India’s prominent Card Issuers. As of March 31, 2022, 9.79 million Paxes, cumulatively, had availed of their services, since Fiscal 2020.

Aayush Agrawal, Senior Research Analyst, Swastika Investmart said that despite the asset-light operations, the company has witnessed volatile cash flows due to high receivables.

DreamFolks Services IPO: GMP

As per market observers, Dreamfolks Services shares are available at a premium (GMP) of Rs 62 in the grey market today.

DreamFolks Services IPO: Should you Invest?

“We recommend Subscribe to this IPO on the following parameters: The company is profitable having no debt, travelling industry facing tailwinds post pandemic, the company has no private equity, the Valuation of company is high and it the only point of concern, the company has First Mover advantage as there is no such companies in India it’s peer are only present in China and UK,” said Jainam Broking in an IPO note.

Angel One, in its IPO note, said: “In terms of valuations, the post-issue P/E works out to 104.8x FY22 EPS (at the upper end of the issue price band). However, the multiple looks higher mainly due to lower profitability caused by pandemic-led industry-wide issues. DFSL enjoys a 95 per cent market share and enjoys early mover advantage in the segment. It has been an asset-light business model gaining the preference of air travelers. Further, DFSL has focused on diversifying and increasing its services portfolio. Thus, we have a SUBSCRIBE rating on the issue from a medium to long-term perspective.

DreamFolks facilitates an enhanced airport experience for passengers, leveraging its technology-driven platform. The company’s asset-light business model integrates global and domestic networks, credit card and debit card issuers and other corporate clients, including airline companies, with various airport lounge operators and other airport-related service providers on a unified technology platform.

Equirus Capital and Motilal Oswal Investment Advisors are the book running lead managers to the public issue. Link Intime India Private Ltd is the registrar of the initial share sale.

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By jaghit

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