Airport service aggregator Dreamfolks Companies’ preliminary public providing (IPO) will open for subscription on Wednesday, August 24. The worth band has been set within the vary of Rs 308 to 326 per share and can shut on Friday, August 26. The general public subject is totally a suggestion on the market (OFS) of as much as 17.24 million fairness shares.
Touted as India’s largest airport service aggregator platform, Dreamfolks Companies has no listed friends on the bourses. The corporate facilitates prospects’ entry to airport associated providers like lounges, meals and drinks, spa, meet and help, airport switch, transit inns or nap room entry, and baggage switch.
At current, the corporate facilitates all of the 54 lounges operational in India and enjoys market share of over 80 per cent within the home lounge entry market.
That aside, it commanded a market share of over 95 per cent of all bank card and debit card entry to airport lounges on the finish of fiscal 2021-22 (FY22).
Here’s a guidelines of what buyers ought to keep in mind earlier than they subscribe to Dreamfolks IPO:
Subscription date: The three-day public subject opens on Wednesday, August 24 and can shut on Friday, August 26.
Worth band, subject dimension, and m-cap: On the higher finish of the worth band of Rs 308-326, the problem dimension involves Rs 562 crore. Traders can bid for lots of 46 shares and in multiples thereof. The post-issue implied market capitalization is more likely to be Rs 1,609 crore to Rs 1,703 crore.
Gray market premium: Based on IPO watch, shares of Dreamfolk Companies have been buying and selling at a premium of Rs 85 per share within the gray market. Because of this the corporate’s shares could listing at Rs 411 per share in opposition to the higher worth band of the problem worth.
Problem break-up: The general public providing is reserved 75 per cent for certified institutional patrons, 15 per cent for the non-institutional patrons, and 10 per cent for retail buyers. Submit the problem, the corporate wouldn’t obtain any IPO proceeds and the promoter group would comprise 67 per cent of shareholding, whereas the remainder 33 per cent would go to the general public.
Allotment date and itemizing: The tentative date for allotment of Dreamfolks IPO shares is September 1, 2022. The corporate will seemingly listing on exchanges NSE and BSE on September 6, 2022.
Monetary overview: Dreamfolks Companies’ income from operations grew 167.5 per cent to Rs 282.5 crore on the finish of FY22 from Rs 105.6 crore in FY21. Web revenue margin, too, rose to five.75 per cent in FY22 from 1.37 per cent in FY21. Ebitda margin, in the meantime, climbed to eight.4 per cent in FY22 from 1.9 per cent in FY21.
Aggressive strengths: Based on Axis Capital, the corporate is a dominant participant within the airport lounge aggregation business in India, and enjoys first-mover’s benefit. As of March 31, 2022, the corporate offered customers entry to 244 contact factors in India and 1,172 contact factors abroad. Companies like meals and drinks, spa providers, transit inns, baggage transfers to customers are incremental value-added providers. Furthermore, the corporate is ready to capitalize on rising the patron base of air visitors passengers and card customers with out incurring any direct, shopper acquisition price. Additional, the corporate’s minimal capital deployment ends in excessive working leverage, analysts mentioned.