Dreamfolks files DRHP with Sebi for IPO - Top 10 things investors must know

Dreamfolks Services Limited, India's largest airport service aggregator platform has filed its Draft Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (Sebi) for initial public offer (IPO).

Investors must know these top 10 things about the company and its IPO:

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1) IPO Price: The company plans to offer of up to 21,814,200 equity shares of face value Rs. 2 each through an offer for sale by selling shareholders, through its initial public offering, as per the release from the company. 

2) IPO issue size: The company plans to offer of up to 21,814,200 equity shares.

3) Post offer paid-up equity share : The IPO will constitute 41.75% of the post offer paid-up equity share capital of the company, as per the release of the company. 

4) Book Running and Lead Manager : Equirus Capital Private Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers to the IPO.

5) Company details: 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. 

6) Services: Dreamfolks facilitates consumers’ access to the following airport related services like (i) Lounges (ii) Food and Beverage (iii) Spa (iv) Meet and assist (v) Airport transfer (vi) Transit hotels / nap room access, and (vii) Baggage transfer services. Its dominance in the segment is based on facilitating access to 100% of the 50 lounges currently operational in India – a market that is expected to grow at 4x times of the current market size. 

7) Market share: The Company enjoys a market share of over 95% of all India-issued credit card and debit card based access to airport lounges in Fiscal 2020. Additionally, in Fiscal 2020 Dreamfolks also accounted for around 67 per cent of the overall lounge access volume in India.

8) Global footprint:  Dreamfolks has a global footprint extending to 1,259 touch-points in 121 countries across the world including India as on December 31, 2021. 

9) Tie-up with lounge operators: Dreamfolks has tie ups with all lounge operators including the market leaders like Premium Plaza Lounge and Travel Club Lounge. 

10) Lounge operation: The lounges work in close coordination with Dreamfolks as it provides more than 80 per cent of the overall traffic for most lounges, and also reduces the need for lounges to tie up with multiple bank / other partners. Dreamfolks covers 100 per cent of lounges being operated in India, and it has significant exclusivity for India issued credit and debit card programs in key locations.