DreamFolks Services earns ₹253 cr from anchor investors ahead of IPO

IPO The anchor was open to investors on 23 August.

As per BSE data, a total of 77,59,066 equity shares under the IPO were allotted to anchor investors at higher price bands. 326 per share aggregate 252.95 crores.

between the anchors investorsSmallcap World Fund was the highest bidder for 28.46% of the total offering, with Aditya Birla Sun Life Small Cap, Aditya Birla Sun Life Multicap, Invesco India Multicap Fund, and Sundaram Mutual Fund a/c Sundaram Services Fund among the top five investors. Were. ,

Other anchor investors are – Abacus Growth Fund – 2, Kuber India Fund, Malabar India Fund, Mirae Asset India Sector Leader Equity Fund, Quant Mutual Fund – Quant Value Fund, Cent Capital Fund, Elara India Opportunities Fund, Mathews Asia Funds Asia Small Companies Funds, PNB MetLife India Insurance Company, Societe Generale, Seganty India Mauritius, Vikas India EIF I Fund and BNP Paribas Arbitrage.

The IPO will include an offer for sale (OFS) where the promoters of the company will sell 1,72,42,368 equity shares. The promoters are Libertha Peter Kalat, Dinesh Nagpal and Mukesh Yadav.

The price band of IPO is from 308 326 per equity share.

75% of the total issue is reserved for Qualified Institutional Buyers (QIBs), while 15% of the total IPO size is given to non-institutional investors and the remaining 10% to retail individual investors (RIIs).

Equirus Capital and Motilal Oswal Investment Advisors are acting as the book-running lead managers of the IPO.

DreamFolks Services is a leading player and India’s largest airport service aggregator platform that provides passengers with the convenience of an enhanced airport experience by leveraging a technology-driven platform.

Should you subscribe to Dreamfolks Services IPO?

Vikrant Kashyap, an analyst at KR Choksi in the IPO note said, “… at the upper price band of Rs 326 and EPS of EPS. 3.11 For FY22, the P/E ratio is 104.8x. The company has witnessed a growth of 90.7% CAGR across multiple touch points during FY 18-22. The subscriber base has also seen a growth of 119.7% CAGR, with the cities growing from 23 cities to 536. Despite the impact of Covid-19 in FY20-21, the company has seen a steady increase in the pace of business. Dreamfolks is also focusing on increasing its overseas presence from zero to 1,172 touchpoints by FY20. The company is improving its broad base by expanding its reach in India and abroad. The company will also benefit from government initiatives like UDAN, which will help expand reach to more regional airports.”

Further, Kashyap said, “As the air travel industry rapidly recovers from the COVID-19 uncertainties, we are optimistic that the company is well-prepared for the upcoming growth opportunities owing to its market dominance. Expanding the international air lounge market by improving our touchpoints. We believe it is important for the company to grow in domestic and international lounge services by expanding its partnerships with card issuers and other service providers. Consequently, we recommend that the Dreamfolks Services Limited IPO be rating ‘Subscribe’.”

Meanwhile, Purves S Choudhary of Angel One said, “In terms of valuation, the post-issue P/E works out to 104.8x FY22 EPS (at the upper end of the issue price band). However, the multiple mainly looks higher. This is due to low profitability due to pandemic-led industry-wide issues. DFSL enjoys 95% market share and early mover advantage in this segment. It has been an asset-light business model receiving priority from air travelers In addition, DFSL has focused on diversifying and enhancing its portfolio of services. Thus, we have a membership rating from a medium to long term perspective on this issue.”

In its note, Jainum Broking recommends subscribing to this IPO on the following parameters – the company is profitable, has no debt; The travel industry is facing tailwinds after the pandemic; The valuation is high and this is the only point of concern; There is a first mover advantage as there is no such company in India, its counterparts exist only in China and the UK; And it has no private equity.

Further, Swastik in his research note said, “Despite asset-light operations, the company has witnessed volatile cash flows due to high receivables. Lastly, the nature of the issue is OFS which will lead to dilution of 33% of the promoter’s stake.” And the premium valuation (P/E of 104.82 based on FY22 EPS) makes it suitable for long-term investors with medium to high risk. And hence, we recommend ‘Subscribe’ rating only to ‘High-risk investors’. Huh.”

Dreamfolx Services does not have any listed peer companies for performance comparison as it operates in an industry which is in its early stages. Therefore, there is a limited number of operators in this industry.

After the IPO, Dreamfolx Services will be listed on BSE and NSE.

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