Dreamfolks Services IPO opens 24 Aug, public issue entirely an OFS; share market debut in September

Dreamfolks Services IPO will open for subscription on Wednesday, 24 Aug and close on 26 Aug.

Dreamfolks Services IPO opens 24 Aug, public issue entirely an OFS; share market debut in September
The book running lead managers to the issue are Equirus Capital Private Ltd, and Motilal Oswal Investment

Dreamfolks Services IPO will open for subscription on Wednesday, 24 Aug and close on 26 Aug. The anchor portion for the public issue will open on 23 Aug. The issue is entirely an offer-for-sale (OFS), offering up to 1.7 crore equity shares by the existing promoters and the selling shareholders. Promoters — Mukesh Yadav and Dinesh Nagpal will sell upto 65.31 lakh shares each, and Liberatha Peter Kallat will offload up to 41.8 lakh shares through OFS. The equity shares of Dreamfolks Services are likely to be listed on BSE and NSE. The book running lead managers to the issue are Equirus Capital Private Ltd, and Motilal Oswal Investment Advisors. Link Intime India Private Ltd will be the registrar to the issue. Dreamfolks has no listed peers. 

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Listing likely on 6 September

The finalisation of basis of allotment of shares will take place on 1 September, and initiation of refunds or unblocking of funds from ASBA account will happen on 2 September. The credit of equity shares to demat account  to allottees is likely to happen on 5 September. The stocks are expected to be listed on stock exchanges on 6 September. The company will not directly receive any proceeds from the offer. The average return on Net Worth (RoNW) stood at 30.40x. 

Dreamfolks facilitates an enhanced airport experience for passengers, leveraging its technology-driven platform. The company’s asset-light business model integrates global card networks operating in India, 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.

Also read: Syrma SGS Technology IPO GMP rises; 3 more companies file IPO papers with SEBI

Company to benefit as Indian lounge market expected to grow at 4 times by 2040

According to the DRHP, the airport lounges have grown steadily in India over the past 5 years. The growth was being driven by the metro cities until about 2-3 years ago, however in the past 2 years the lounges have been expanding in non- metro airports as well. Any airport with a passenger movement of around 5-6 million a year can accommodate a successful lounge. The number of lounges in an airport is proportional to the passenger numbers; the top 24 Global Airports average at around 7 lounges per airport. The Indian Airports average at around 2 lounges per airport. The Indian lounge market is expected to grow at 4 times of the current market size and is expected to reach 204 lounges by 2040.

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