Dreamfolks Services IPO opens today; raises Rs 253 CR from 18 anchor investors

Airport service aggregator platform Dreamfolks Services Ltd's Rs 562 crore Initial Public Offering (IPO) opens today for subscription. 

Prior to its debut on the bourses, it managed to raise Rs 253 crore from anchor investors like Societe General, Mirae Asset India, Saint Capital Fund, Segantii India Mauritius, Kuber India Fund, Smallcap World Fund, Inc, and Aditya Birla Sunlife. 

The share sale, with a price band of Rs 308-326 a piece, opened for public subscription on August 24 and will close on August 26. Dreamfolks 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.

The IPO is entirely an Offer-For-Sale (OFS) of up to 1.72 crore equity shares by promoters—Liberatha Peter Kallat, Dinesh Nagpal and Mukesh Yadav—who own 100% stake in DreamFolks Services. Post listing, the promoter's share will come down to 67%, while public shareholding will comprise 33% of the company.

The shares of Dreamfolks will list on exchanges on September 6. 

Anchor investors in Dreamfolks

Through the anchor route, Smallcap World Fund bought 22,08,598 equity shares of the company for Rs 72 crore. Aditya Birla Sun Life Small Cap Fund has purchased 6.13 lakh shares worth Rs 20 crore. Other investors include Invesco India Multicap Fund, Abakkus Growth Fund, Quant Mutual Fund, PNB Metlife India, Societe Generale, and BNP Paribas Arbitrage, among others. 

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About the company 

DreamFolks, which founded in 2012, is a airport service aggregator platform that facilitates consumers' access to airport-related services from lounges to baggage transfer services.

The company's revenue from operations increased from Rs 98.7 crore during fiscal 2017 to Rs 367.04 crore in fiscal 2020 at a compounded annual growth rate (CAGR) of 55%. It saw a drop to Rs 282 in the last financial year.

The bootstrapped startup is profitable with a net profit of Rs 16 crore in the previous fiscal year.  

“It becomes more and more exciting. So far, we did not have any external investors and were only focused on growing this company. Now, simultaneously, the focus would also be on how we can add more value for our shareholders...and we will continue to generate cash profits and reinvest in the business,” chief financial officer Giya Diwaan had told HerStory.

Equirus Capital and Motilal Oswal Investment Advisors are underwriters to the issue.

“Company follows an asset-light business model that integrates global card networks in India, card issuers and other corporate clients in India, including airline companies with various airport lounge operators and other airport-related service providers on a unified technology platform,” said AngelOne in a note. 

It added, “Further, it 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."

(With inputs from PTI)