Shares of Dreamfolks Services slipped nearly 5% on Wednesday, September 17, after the company announced it has discontinued its airport lounge services in India. The stock dropped to Rs 131.07, marking a decline of 4.40% or Rs 6.03 at 9:07 AM.
The company said the decision would have a “material impact,” though it did not disclose further details. Dreamfolks clarified that its other domestic services and global lounge operations will continue as usual.
The move comes after increasing challenges in the domestic market, with airport operators opting to provide lounge access directly. In August, Dreamfolks revealed that three of its customers — Encalm Hospitality, Adani Digital, and Semolina Kitchens — would be ending their contracts. Earlier in July, the company had also discontinued certain programs for Axis Bank and ICICI Bank.
Despite these setbacks, Dreamfolks said on Tuesday that its contracts with clients remain active, and discussions are underway to explore alternative services for customers.
At the time of writing, Dreamfolks Services shares were trading at Rs 131.07 on NSE, down 4.40%.
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