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Should you Invest in Dreamfolks Services Limited IPO?

Should you Invest in Dreamfolks Services Limited IPO?

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Dreamfolks Services Limited IPO

Dreamfolks Services Limited IPO is live now. Should you apply? Find out here.

In this article


About Dreamfolks Services Limited

  • DreamFolks is a dominant player and India’s largest airport service aggregator platform, an incubator of the industry with its unique, asset light, capital efficient business model.
  • The company provides services to all the card networks operating in India including Visa, Mastercard, Diners/Discover and RuPay; and many of India’s prominent card issuers including ICICI Bank Limited, Axis Bank Limited, Kotak Mahindra Bank Limited, HDFC Bank Limited (in respect of debit card lounge program) and SBI Cards and Payment Services Limited.
  • DreamFolks carefully crafted a service proposition and a tech platform to provide DreamFolks clients (such as card network providers, banks, airline operators and hotels) the option of offering a wide-ranging bouquet of services to their end customers, as part of their customer engagement and loyalty management programs.
  • It provides with access to a host of services: from doorstep to the airport, within the airport, and again from the airport to the door-step at the destination, including lounges, food and beverage, spa, meet and assist, airport transfer, transit hotels/nap room access, and baggage transfer.
  • DreamFolks’ dominant position is underpinned by its estimated market share of over 95% in fiscal 2022 of all India-issued card-based access to domestic lounges in India (F&S Report).
  • DreamFolks has 50 clients including the card networks and many of India’s prominent card issuers as of March 31, 2022, and 9.79 million (97.9 lakh) pax (people or passengers), cumulatively, had availed of its services, since Fiscal 2020.
  • Through its partnerships, with other service providers, DreamFolks has a global footprint extending to 1,416 touchpoints in 121 countries across the world out of which, 244 touchpoints are present in India and 1,172 touch-points overseas, as at March 31, 2022. Out of the total estimated pax of 75 lakh accessing lounges in India in FY20 (pre-pandemic), 48.8 pax did so through DreamFolks’ network. In FY22 (pandemic year), DreamFolks facilitated access to 35.3 lakh out of a total of 52 lakh pax accessing lounges in India.
  • DreamFolks’ first mover advantage in the lounge access aggregator industry in India has enabled it to become a dominant player in the industry with a share of over 80% in the domestic lounge access market in India.
  • DreamFolks’ dominance is underpinned by facilitating access to 100% of the 54 lounges currently operational in India (Source: F&S Report).
  • DreamFolks’ has tied up with various entities to facilitate access to around 57 restaurants / F&B outlets at 18 airports across India, as at March 31, 2022.
  •  Over the years, the company has transformed from being an airport lounge access aggregator to an end-to-end technology solutions provider for designing and delivering services that enhance the airport experience.

Services offered by Dreamfolks

Collectively, the services which our Company facilitates access to which include the following services:

  • Lounge access
  •  Food and beverage offerings
  • Spa services
  • Meet and assist
  • Airport transfer services
  • Transit hotels /nap room access and
  •  Baggage transfer.

💰Issue Details of Syrma SGS Technology IPO

  • IPO open from Aug24th – Aug26th 2022
  • Face value: ₹2
  • Price band: ₹308-₹326
  • Market lot: 46 shares
  • Minimum investment: ₹14,996
  • Maximum investment: ₹1,94,948 for 13 lot
  • Listing on: BSE and NSE
  • Offer for sale: up to ₹562.10 crores
  • Promoters: Dinesh Nagpal, Mukesh Yadav & Liberatha Peter Kallat. All three are the promoters of the company.
  • Registrar: Link Intime India Private Ltd

Dreamfolks Services Limited IPO Issue Price

What is an IPO and should you invest in them?


✂️Offer Breakup

The offer is broken up into the following investor classes:

Dreamfolks Services Limited IPO Offer Break Up

🏷️IPO Object

The company will not directly receive any proceeds from the offer and the entire offer proceeds will be received by the selling shareholders, in proportion to the offered shares sold by the respective selling shareholders as part of the offer.


📊IPO Timeline

IPO open dateAug 24th 22Initiation of refundsSep 02nd 22
IPO close dateAug 26th 22The credit of shares to the Demat accountSep 05th 22
Basis of allotment dateSep 01st 22IPO listing dateSep 06th 22

🔭IPO Strengths

  • DSL is the first mover enjoying a unique place in the segment.
  • It currently enjoys 95% of the market share.
  • A profit-making company at the gross level since inception.
  • Only 10% retail portion only due to negative earnings at PAT level for FY21.
  • Investors may consider an investment with a medium to long-term perspective.   

PEER COMPANIES

DSL has no listed peers to compare with. According to the management, it currently enjoys a virtual monopoly in this segment with a 95% market share.


🔎IPO Risks

  • The company is dependent on card-issuing financial institutions, which on average contributed 98.98% of total revenue from the operations during the fiscals 2022, 2021 and 2020. Because of this, companies face a risk of losing our established card networks and card issuer companies as clients.
  • Company success is also dependent on relationships with airport lounge operators, which on an average contributed 98.55% of our total revenue from operations during fiscal 2022, 2021 and 2020 and other airport services providers which on an average contributed 1.45% of our total revenue from operations during Fiscal 2022, Fiscal 2021 and Fiscal 2020.
  • Company operations are heavily dependent on the travel industry, in general, and on the air travel industry, in particular.
  • COVID-19 has had and may continue to have a material adverse effect on the travel industry and consequently have a potential impact on our business, financial condition and results of operations.

🚀Financial Data

ParticularsFor the year (₹ in Cr)
2022 2021 2020
Total Revenue283.99108.11367.81
Total Assets168.68122.50137.76
Profit After Tax16.25-1.4531.68

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