Last Updated:July 07, 2025, 17:26 IST
The price band of the Travel Food Services IPO, which aims to raise Rs 2,000 crore, has been fixed in the range of Rs 1,045 to Rs 1,100.
Travel Food Services IPO.
Should I Subscribe To Travel Food Services IPO? The initial public offering of Travel Food Services Ltd opened today, Monday, July 7. The price band of the mainboard IPO, which aims to raise Rs 2,000 crore, has been fixed in the range of Rs 1,045 to Rs 1,100. Till 5:00 pm on the first day of bidding on Monday, the issue received a 0.11 times subscription, garnering bids for 13,98,852 shares as against the 1,27,42,199 shares on offer.
The retail and NII participation stood at 0.15x and 0.07x, respectively. The QIB category also receive a 0.07x subscription.
The IPO’s grey market premium remains very low at 1.45%, indicating flat listing or weak gains.
The three-day IPO will be closed on July 9.
Travel Food Services, founded in 2007, operates 397 quick service restaurants (QSRs) and airport lounges across 17 airports in India and Malaysia, with a portfolio of 117 in-house and partner brands.
Travel Food Services IPO GMP Today
According to market observers, unlisted shares of Travel Food Services Ltd are currently trading at Rs 1,116 against its upper IPO price of Rs 1,100. It means a grey market premium or GMP of Rs 16, which is 1.45% over its issue price, indicating flat listing.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Travel Food Services IPO Allotment And Listing Dates
The basis of allotment of the Travel Food Services IPO will be finalised on July 10.
Its listing will take place on July 14, on both BSE and NSE.
Travel Food Services IPO Price And Lot Size
The price band of the IPO has been fixed in the range of Rs 1,045 to Rs 1,100 apiece.
Its minimum lot size is 13. It means investors will have to apply for a minimum of 13 shares or in multiple thereof.
Retail investors require a minimum capital of Rs 13,585 to apply for the IPO.
Travel Food Services IPO: Should You Apply?
Most brokerage firms have given a ‘subscribe for long-term’ rating to the Travel Food Services (TFS) IPO, citing the company’s strong positioning in airport-focused food services and its growth potential in India’s expanding aviation and travel ecosystem.
SBI Securities highlighted TFS as a “proxy to the Indian aviation growth story”, given its strong presence across major airport terminals and upcoming concessions at Greater Noida and Navi Mumbai airports. The brokerage noted that the company’s brand portfolio includes a healthy mix of in-house and third-party QSR brands.
“At the upper price band of Rs 1,100, the stock is likely to trade at 39.9x FY25 EPS, which is at a discount to listed QSR companies. TFS has superior margins and return ratios along with a strong balance sheet. We recommend investors to ‘subscribe’ to the issue at the cut-off price,” SBI Securities said.
Canara Bank Securities is positive on the company’s airport-centric model, citing its competitive moat created by global partnerships, strong brand equity, and high-traffic locations.
“From a valuation standpoint, the IPO is priced attractively, placed below the sector average and trades lower than the peer average in terms of price-to-book value (P/BV). Given its strong growth trajectory, first-mover advantage, and resilient business model in a niche, high-growth segment, we recommend a ‘subscribe’ rating for both listing gains and long-term investment,” the brokerage added.
Arihant Capital Markets also gave a ‘subscribe’ rating, pointing to TFS’s market leadership in airport QSRs and lounges, operational efficiency, and a diversified brand mix.
“Ongoing expansion in domestic and international airports, along with digital initiatives to boost like-for-like sales, should drive sustained double-digit revenue growth. The issue is valued at a P/E ratio of 38.15 times, based on FY25 EPS of Rs 28.83 per share,” the brokerage said.
Ventura Securities noted that TFS operates a balanced brand mix across 37 in-house, 32 international, and 58 regional QSRs. Its revenue split is nearly even between lounges (52%) and QSRs (48%).
“TFS’s primary operational costs include manpower and food, which are significant components of its expense structure. These costs play a key role in maintaining the company’s service delivery across its operations. TFS is also expanding opportunities in expressway travel QSRs,” Ventura said while giving a ‘subscribe’ recommendation.
BP Equities emphasized TFS’s long-term growth potential aligned with India’s aviation trajectory and its strategic locations.
“The issue is valued at a P/E of 39.9 times, based on FY25 earnings, which represents a discount to listed QSR companies. Therefore, we recommend a ‘subscribe’ rating for the issue,” it said.
Travel Food Services IPO: Other Info
The IPO is entirely an offer for sale (OFS) of shares worth Rs 2,000 crore by promoter Kapur Family Trust. The offer includes reservations for subscriptions by eligible employees. Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder.
It raised nearly Rs 600 crore from anchor investors, days before its IPO opening for public subscription.
Travel Food Services launched its first travel quick-service restaurant (QSR) outlet in 2009. It is promoted by SSP Group plc (SSP) and its affiliates SSP Group Holdings Ltd, SSP Financing Ltd, SSP Asia Pacific Holdings Ltd along with the Kapur Family Trust, Varun Kapur and Karan Kapur.
SSP, an FTSE 250 company listed on the London Stock Exchange, is recognised as a global leader in the Travel Food & Beverage (F&B) sector based on revenue in 2024, as per the Crisil report.
The Kapur Family Trust operates under the flagship brand K Hospitality, which oversees and invests in several hospitality and food service businesses, including Travel Food Services (collectively referred to as K Hospitality).
Headquartered in Mumbai, Travel Food Services’ portfolio features a diverse selection of food and beverage (F&B) concepts, including fast food, cafes, bakeries, food courts and bars, primarily located in airports and some highway locations.
The company’s presence spans 14 airports in India, including major hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai, as well as three airports in Malaysia, as of June 30, 2024.
Its QSR outlets are predominantly located within airports, with select locations along highways. It also operated 31 lounges in India and Malaysia as of the same date and expanded internationally by opening a new lounge in Hong Kong in July this year.
The international brands include renowned names such as KFC, Pizza Hut, Wagamama, Coffee Bean & Tea Leaf, Jamie Oliver’s Pizzeria, Brioche Doree, Subway, and Krispy Kreme.
The regional Indian brands in its network feature popular chains such as Third Wave Coffee, Hatti Kaapi, Sangeetha, Bikanervala, Wow Momo, The Irish House, JOSHH, Adyar Ananda Bhavan and Bombay Brasserie.
Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India) Pvt Ltd, ICICI Securities and Batlivala & Karani Securities India are the book-running lead managers to the issue.
The equity shares are proposed to be listed on the NSE and the BSE.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to markets, economy and companies. Having a decade of experience in financial journalism, Haris has been previously asso… Read More
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