India's largest aggregator of airport lounge services Dreamfolks Services has set a price band for its initial public offering at Rs 308-326 a share. The company had earlier said its issue will be available for subscription from August 24 to 26. The anchor portion will open for bidders on August 23.
Dreamfolks has cut its offer-for-sale to 1.72 crore shares from 2.18 crore shares with up to 65 lakh shares each of Mukesh Yadav and Dinesh Nagpal and up to 40 lakh units owned by Liberatha Peter Kallat. From its upper end price band, it will raise around Rs 562.10 crore.
The shares allotted are expected to be credited to applicants' demat accounts on September 5, and the company hopes to list on the exchanges on September 6. This will be the second IPO in nearly three months, after Syrma SGS Technology closed for subscription on Thursday. Equirus Capital and Motilal Oswal Investment Advisors are the lead managers for the issue.
Dreamfolks Services is India's largest airport service aggregator platform, powering an enhanced airport experience via technology. The segment is expected to grow rapidly, as India plans to open airports in newer cities. A Frost & Sullivan report quotes that airport services may register a growth of Rs 5,385 crore by FY30, with the number of lounges rising to 295 by 2040.
The business model of Dreamfolks Services is asset-light and integrates global card players, credit card and debit card issuers with airlines and various airport lounge operators. It also manages airlines' loyalty programmes.
Dreamfolks has also bagged contracts from the Indian Railways to offer similar services at stations, founder-chairperson and MD Liberatha Peter Kallat told PTI earlier in March. "The Railways has awarded us the contracts to offer our services at the lounges of the New Delhi, Ahmedabad, Ernakulam, Madurai and Sealdah stations. We are working on to launch the services at the earliest," she said. Entering the railways is part of the company's planned expansion into newer sectors.
For FY22, the company reported total income of Rs 283.99 crore as against Rs 108.11 crore a year ago. Net profit for the fiscal stood at Rs 16.25 crore, against a loss of Rs 1.45 crore a year ago.