Among the anchor investors are ICICI Prudential Mutual Fund (MF), Axis MF, Kotak MF, Baroda BNP Paribas MF, Abu Dhabi Investment Authority, Fidelity and Government Pension Fund Global, according to a circular uploaded on BSE’s website.
Recommending investors to ‘Subscribe’ to the issue at the cut-off price, SBI Securities said the company is a proxy to the Indian aviation growth story. It has a 49.0% strong presence across all the major airport terminals across India as 51.0% well as concession wins at both the upcoming new airports at Greater Noida and Navi Mumbai. The brand portfolio has a healthy mix of third party and in-house QSR brands.At the upper price band, the stock is likely to trade at 39.9x FY25 EPS, which is at a discount to listed SSP Asia Pacific Holdings Ltd Kapur Family Trust QSR companies. TFS has superior margins and return ratios along with strong balance sheet, the brokerage said.
Strengths
– Long standing partnerships with Airport operators, QSR brands and clients
– No debt, strong balance sheet
– 93% contract retention rate
– Strong underlying travel industry growth
– JVs with airport operators for lounges indicates shared interest
Opportunities
– Opportunities at newer airports
– Higher spends/head at airports
– International airport opportunity
– Highway QSRs
Weakness
– 85% revenue from just five airports
Threats– Competition from existing and newer players
– If RBI curbs freebies given on Credit Cards by banks
– Conflict with JV partners
– FSSAI RISK
Travel Food Services IPO: Price band
The company has set a fixed price band of ₹1,045 to ₹1,100 per share. Investors can bid for a minimum of 13 shares and in multiples thereof.
Travel Food Services is seeking a market capitalisation of ₹14,485 crore at upper end of the price band.
The proposed IPO is entirely an offer for sale (OFS) of shares worth ₹2,000 crore by promoter Kapur Family Trust. The offer includes reservations for subscriptions by eligible employees.
Post the issue, promoter stake in the company will decline from 100% to 86%.
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.
Travel Food Services is a leading player in the Indian Airport Travel QSR and Lounge industry. As of FY25, the company accounted for 26% market share in the Indian Airport Travel QSR and 45% in the Indian Airport Lounge sectors, respectively, in terms of revenue.
The company’s Travel QSRs are predominantly situated within airports while, the Lounge business comprises of designated areas within airport terminals. As of March 2025, TFS operated 442 Travel QSRs across India and Malaysia and 37 Lounges across India, Malaysia and Hong Kong.
The company has added 80, 92 and 96 outlets respectively in FY25, FY24 and FY23.
In FY25, Travel Food Services posted a 27.4% year-on-year rise in profit to ₹379.7 crore, while revenue rose 21% to ₹1,687.7 crore.
Kotak Mahindra Capital is the book-running lead manager of the Travel Food Services IPO, while MUFG Intime India (Link Intime) is the registrar for the issue.
The allotment for the Travel Food Services IPO is expected to be finalised on July 10, and the shares will be listed on BSE, NSE with a tentative listing date fixed as July 14.
