Dreamfolks locked in 5% lower band as firm discontinues domestic lounges

The southward movement in the stock came after the company announced to discontinue domestic airport lounges for its clients. The company said that impact of the same is material.

Dreamfolks shares touched a 5 per cent lower circuit at ₹131 per share on BSE. At 11:57 AM, Drealfolks’ share price was trading 4.97 per cent lower at ₹131 per share on BSE. In comparison, the BSE Sensex was up 0.38 per cent at 82,691.33.

 

The market capitalisation of the company stood at ₹697.84 crore. The 52-week high of the stock was at ₹518.15 per share, and the 52-week low was at ₹122.25.

Why did Dreamfolks' shares fall in trade?

The southward movement in the stock came after the company announced discontinuing domestic airport lounges for its  clients. The company said that the impact of the same is material.  “We reiterate that contracts with our clients remain active and the discussions with the clients on alternate customer value propositions are in progress,” the filing read. 

 

It added: The other domestic services and global lounge business will continue as usual.

 

In August, Dreamfolks had informed that three of its customers, including the country's third-largest lounge operator, Encalm Hospitality, would end their contracts with the airport lounge access provider.

 

Adani Digital and Semolina Kitchens will also terminate their contracts, Dreamfolks said in an exchange filing. The discontinuation of the contracts would have a material impact on Dreamfolks' financial operations, it said, without giving further details.

 

Dreamfolks is an aggregator that connects lounge operators with card networks and passengers, while its troubles began with airport operators looking to directly provide lounge access. 

 

The company in July said it was closing certain programmes for clients Axis Bank and ICICI Bank.

 

Dreamfolks is a global travel and lifestyle services aggregator, dedicated to elevating the airport experience for travellers through a technology platform.  Since the company’s inception in 2013, its has evolved from offering lounge access services to offering a full suite of premium travel and lifestyle services enabled by our comprehensive technology solution.

 

According to its official website, the company commands 90 per cent market share in India's domestic lounge access market for debit and credit card programs. We proudly serve esteemed clients, including major Card Networks, Banks, OTAs, Airlines, and Enterprises.