Dreamfolks Services' downsized IPO opens for subscription on Wednesday

The initial public offering (IPO) of Dreamfolks Services, India’s largest airport service aggregator, will open for subscription on Wednesday and close on Friday. The price band for the issue is Rs 308-326 per share. At the top-end, Dreamfolks will be valued at Rs 1,703 crore.

The company’s IPO is entirely an offer for sale by existing shareholders. In January, when the company filed its draft offer document with the Securities and Exchange Board of India (Sebi), it was looking to sell 21.81 million shares through the IPO, which has now been reduced by 20 per cent to 17.24 million shares, to align with the volatile market conditions. The issue price now works out to Rs 562 crore.

Dreamfolks enables credit card companies and corporates to provide access to airport services to their clients. It facilitates access to all the 54 lounges currently operational in India. The company has a market share of over 90 per cent of all credit and debit cards that offer the airport lounge facility. In the 2021-22 financial year, the company had reported a net profit of Rs 16.3 crore on revenues of Rs 283 crore.