DreamFolks Rs 562-crore IPO will open for subscription on Wednesday, and close on 26 August. The company has announced the price band at Rs 308-326 per equity share of face value of Rs 2 each. 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. The equity shares are likely to be listed on BSE and NSE on 6 September. In the grey market, DreamFolks IPO shares were trading at Rs 75 apiece premium. The book running lead managers to the issue are Equirus Capital Private Ltd, and Motilal Oswal Investment Advisors.
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Investors can make bids for a minimum of 46 equity shares, and in multiples thereafter. Up to 75 per cent of the total offer is reserved for qualified institutional buyers, and 15 per cent for non-institutional investors. The remaining 10 per cent stake is allocated to the retail investors. The company will not receive any proceeds from the offer. The company’s PE ratio at the upper end of the price band, based on the diluted EPS for fiscal 2022 stood at 109.40x, while the PE ratio of Nifty 50 as of March 31, 2022 was at 22.92x.
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 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.
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As per the company’s RHP, the total number of operational airports is expected to reach 295 by 2040; these are a combination of a second airport within the same city and new Greenfield projects. The initial regulations that hindered the development of a second airport within the same city have been removed. Navi Mumbai airports and similar projects are key growth drivers for DreamFolks. As of FY 2022, there were around 5 airports that handled more than 10 million passengers, compared to 3 airports in FY 2021. This is expected to be nearly 7X and reach 47 by 2040. This is expected to be a key opportunity with the possibilities of multiple lounge options at these airports.
