Travel Food Services Limited, India’s leading player in the airport travel quick service restaurant (Travel QSR) and airport lounge space, is gearing up to launch its Initial Public Offering (IPO) from July 7 to July 9, 2025. The issue size is ₹2,000 Crores, entirely an Offer for Sale (OFS) of 6.29 lakh shares, with no Fresh Issue component. The Promoter Selling Shareholder will receive all proceeds, as the company will not benefit directly from this IPO.

The price band for the issue is ₹1,045 to ₹1,100 per equity share, and the market capitalisation at the upper price band will stand at approximately ₹14,484.74 Crores. The lot size is fixed at 13 shares, meaning retail investors must apply with a minimum investment of ₹14,300, while HNIs need to invest at least in 14 lots (182 shares), totalling ₹2,00,200.

The shares will be listed on both the BSE and NSE on or around July 14, 2025, and allotment will be finalized on July 10, 2025.

The IPO is being led by prominent financial institutions:

• Kotak Mahindra Capital Company Limited

• HSBC Securities and Capital Markets (India) Private Limited

• ICICI Securities Limited

• Batlivala & Karani Securities India Private Limited

The registrar for the issue is MUFG Intime India Private Limited (formerly Link Intime India Pvt Ltd).

Grey Market Premium (GMP) Insights

As per the latest available data on July 2, 2025, the Grey Market Premium (GMP) for Travel Food Services IPO is estimated to be ₹200, which implies a possible 18.18% gain over the upper IPO price of ₹1,100. This GMP trend suggests positive listing prospects, although GMPs are unofficial indicators and may not reflect actual listing prices.

Market Position and Business Overview

Travel Food Services commands a significant market share in India’s growing airport-based F&B segment:

• 26% market share in the airport Travel QSR segment

• 45% market share in the airport Lounge business

The company operates across major Indian airports, offering high-quality quick service restaurants, lounges, and premium food court services.

The business is backed by experienced promoters and global players, including:

• SSP Group plc and its group entities

• Kapur Family Trust, Varun Kapur, and Karan Kapur

These stakeholders bring deep domain knowledge and operational expertise to the business.

Financial Performance Review

Over the past three financial years, the company has exhibited strong top-line and bottom-line growth:

• Revenue from Operations

  • FY23: ₹11,035.82 Million

  • FY24: ₹14,623.95 Million

  • FY25: ₹17,627.09 Million

• EBITDA

  • FY23: ₹4,580.54 Million

  • FY24: ₹5,499.93 Million

  • FY25: ₹6,763.46 Million

• Profit After Tax (PAT)

  • FY23: ₹2,512.99 Million

  • FY24: ₹2,981.20 Million

  • FY25: ₹3,796.59 Million

This consistent financial performance reinforces the company’s operational efficiency and strategic expansion.

Key Valuation Metrics

Here’s a snapshot of the company’s valuation:

• EPS (FY24): ₹27.58 (both pre and post-issue)

• P/E Ratio: 39.89x (vs. Industry P/E of 236x)

• ROCE (FY24): 51.40%

• ROE (FY24): 35.47%

• RoNW: 34.64%

These metrics indicate the IPO is moderately priced, with strong returns and a healthy balance sheet compared to industry peers.

IPO Allotment Process

Investors can check their IPO allotment status on or after July 10, 2025 by visiting the registrar's website. Steps include:

1. Select Travel Food Services Limited IPO from the dropdown.

2. Enter PAN, Application Number, or DP ID/Client ID.

3. Click Submit to check the allotment result.

IPO Purpose and Use of Proceeds

Since this is a 100% Offer for Sale, the company will not receive any part of the IPO proceeds. The Promoter Selling Shareholder will retain the entire amount after deducting expenses and taxes. Despite this, the IPO provides several non-financial benefits such as:

• Enhancing brand reputation and transparency

• Offering liquidity to existing shareholders

• Establishing a market-driven valuation for future capital-raising activities

Investment Recommendation

Given the company’s:

• Strong leadership position in a niche and high-margin segment

• Consistent revenue and profit growth

• Attractive GMP of ₹200 (18.18% potential gains)

• Reasonable P/E compared to industry levels

This IPO appears well-suited for risk-appetite investors aiming for listing gains. However, since it's an OFS with no fresh capital infusion, long-term investors should factor that into their decision.

Final Verdict

The Travel Food Services IPO combines strong fundamentals, a reputed promoter group, high investor interest, and attractive GMP levels. While it doesn't raise new capital for the company, it offers a solid opportunity for investors looking at short-term listing benefits or a strategic stake in the airport F&B sector.

Disclaimer:
This article is intended solely for informational and educational purposes and should not be considered financial advice. Investors are advised to make decisions based on their individual risk profile and financial goals, preferably in consultation with SEBI-registered advisors. Investing in the securities market involves market risks. Always read all relevant documents before investing.

The Upcoming IPOs in this week and coming weeks are CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India, Meta Infotech.

The Current active IPO are Happy Square Outsourcing Services, Cryogenic OGS, Crizac.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.