Tuesday, November 16, 2021

Two airport service providers plan to raise up to Rs 2,200 crore

Two airport service providers at opposite ends of the size spectrum might be lining up initial share sales, multiple people aware of the developments told ET.

DreamFolks, a tech solutions provider for lounge services at airports, which is in talks with the Adani Group for new lounge services at its facilities, plans to raise Rs 800-Rs 1,000 crore through an initial share sale.

Separately, BVG Group, one of the country’s biggest providers of upkeep and cleaning services that has recently bagged the contract for the Adani-operated Mumbai airport, is considering an IPO between Rs 1,000 crore and Rs 1,200 crore.

In a recent interview, Liberatha Kallat, managing director and co-founder of DreamFolks, said the company would be using all options of fundraising, without specifying an IPO.

DreamFolks enables memberships and payments for lounge services through tie-ups with networking companies such as American Express, Mastercard, and Visa apart from banks. It now provides services at 1,000 touchpoints globally across 120 countries. It plans to increase that number to 145 countries by the end of FY22, said Kallat.

Dreamfolks makes lounge services accessible for economy class passengers. It has worked with IndiGo, GoAir and SpiceJet in the past and plans to work with Vistara, said Kallat.

It is in initial talks with the Adani Group which operates airports in Mumbai, Ahmedabad, Lucknow, Mangaluru, Guwahati, Trivandrum and Jaipur for expanding existing lounges and building new ones, including those which the Adani Group will set up itself.

DreamFolks clocked a revenue growth rate of 75% from FY16-FY20. It posted revenue of Rs 370 crore in FY20, said Kallat. The company claims 2.5X growth in clients in FY21.

BVG’s IPO includes a fresh issue of Rs 200 crore and an offer for sale of 1.69 million equity shares.

BVG has recently bagged a contract for the upkeep of the Mumbai airport. It is one of two companies to have bagged contracts for the airport, down from 57 companies that were deployed earlier.

16/11/21 Anirban Chowdhury/Economic Times

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