Travel Food Services IPO Opens July 7 with ₹2000 Crore Issue at ₹1045 to ₹1100 Price Band

Travel Food Services Limited is launching its much-anticipated Initial Public Offering (IPO) with an issue size of ₹2000 crore, entirely via an Offer for Sale (OFS) of 6.29 lakh shares. The IPO is a Book Built Issue aimed at enabling existing shareholders to partially exit while opening up the company to public ownership on India's premier stock exchanges.

The IPO opens for subscription on July 7, 2025, and closes on July 9, 2025. Investors keen to participate should mark these dates to plan their applications.

This is one of the largest IPOs among travel and hospitality companies in recent years, reflecting the company's strong positioning and growth potential in the Indian market.

Key Dates and Timeline for Investors

For investors, timing is critical in IPO participation. Here's the full timeline:

• IPO Opens: July 7, 2025

• IPO Closes: July 9, 2025

• Allotment Finalisation: Expected on Thursday, July 10, 2025

• Listing Date: Tentative on Monday, July 14, 2025

Investors should ensure funds are available, KYC is updated, and demat accounts are active well before these dates.

Price Band, Market Capitalisation, and Minimum Investment

The price band has been set at ₹1045 to ₹1100 per equity share. At the upper band of ₹1100, the market capitalisation is projected at ₹14,484.74 crore.

This significant valuation reflects the company's dominant market share, profitability, and future growth prospects in India’s airport travel QSR and Lounge sectors.

For retail investors:

• Lot Size: 13 shares

• Minimum Investment: ₹14,300 (1 lot)

• HNIs: Minimum 14 lots (182 shares) requiring ₹2,00,200 investment.

This lot structure makes the IPO accessible to retail investors while maintaining institutional appeal.

Lead Managers, Registrar, and Market Maker

The IPO is backed by top-tier financial intermediaries, ensuring smooth execution and investor trust:

• Book Running Lead Managers:

  • Kotak Mahindra Capital Company Limited

  • HSBC Securities and Capital Markets (India) Private Limited

  • ICICI Securities Limited

  • Batlivala & Karani Securities India Private Limited

• Registrar: MUFG Intime India Private Limited (formerly Link Intime India Private Limited)

This experienced team ensures transparent processes from application to allotment and listing.

Business Overview: Market Leadership in Airport QSR and Lounges

Travel Food Services Limited is India's leading player in the airport travel quick service restaurant (QSR) and Lounge segments.

In Fiscal 2025, the company held:

• 26% market share in the Indian airport travel QSR sector.

• 45% market share in the Indian airport Lounge sector.

These impressive numbers highlight its dominance, with operations spanning multiple airports, offering food and beverage services, and premium lounge experiences.

Their business model is uniquely positioned to capitalize on India’s booming air travel industry, which is seeing steady growth post-pandemic, driven by domestic travel and rising disposable incomes.

Promoters and Experienced Leadership

Travel Food Services benefits from the combined experience of its promoters:

• SSP Group plc and associated entities, globally renowned in food travel retail.

• Kapur Family Trust, Varun Kapur, and Karan Kapur, bringing local expertise and strategic vision.

This hybrid global-local leadership ensures a robust strategy, quality execution, and sustainable growth.

Financial Performance: Consistent and Strong Growth

The company has demonstrated steady financial growth, reflecting strong demand and efficient operations:

• 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 growth demonstrates the company's resilience, scalability, and ability to capitalize on the revival of air travel in India.

Valuation, Ratios, and Peer Comparison

Key valuation metrics highlight the fair pricing of this IPO:

• Pre-issue EPS: ₹27.58

• Post-issue EPS: ₹27.58 for FY24

• Pre/Post-issue P/E Ratio: 39.89x

• Industry P/E Ratio: 236x

This lower-than-industry P/E suggests attractive pricing, offering investors a reasonable entry point for long-term growth.

Profitability Metrics:

• Return on Capital Employed (ROCE): 51.40%

• Return on Equity (ROE): 35.47%

• Return on Net Worth (RoNW): 34.64%

These robust ratios reflect efficient use of capital, strong margins, and solid investor returns.

Grey Market Premium (GMP) and Investor Sentiment

As of early July, the Grey Market Premium (GMP) is ₹200, suggesting an approximate listing gain of 18.18% at the upper price band.

While GMP is unofficial, it often serves as an early indicator of market appetite.

Investors should treat GMP cautiously, as it fluctuates and cannot guarantee listing-day gains.

Live Subscription Status

As of 11:30 AM on July 8, 2025, the IPO is 0.15 times subscribed on its second day.

Though early numbers are low, IPOs typically see heavy subscriptions on the final day, especially from HNIs and institutional investors.

How to Check IPO Allotment Status

Investors can check their allotment status from July 10, 2025, by:

1. Visiting the registrar’s website.

2. Selecting Travel Food Services Limited IPO from the dropdown.

3. Entering application number, PAN, or DP Client ID.

4. Submitting details to see allotment results.

This transparent process helps investors plan their next steps effectively.

IPO Objectives: Offer for Sale Only

Important Note: Travel Food Services will not receive any proceeds from this IPO.

All funds raised go to the promoter selling shareholders.

This structure allows existing investors to partially exit, while enabling new investors to join the company’s growth journey.

Investment Risks and Considerations

Strengths:

• Dominant market share in airport QSR and Lounges.

• Strong financial growth.

• Attractive industry tailwinds.

• Experienced global-local promoters.

Risks:

• Entirely an Offer for Sale – no fresh capital for business growth.

• High competition from global and local food service brands.

• Airport operations sensitive to macroeconomic shocks, travel restrictions.

• Relatively high valuation multiples compared to some peers.

Conclusion: A Cautious Buy for Risk-Tolerant Investors

Travel Food Services IPO offers a unique opportunity to invest in India’s booming airport food and lounge sector.

With market leadership, strong financial performance, and moderate GMP expectations, this IPO is likely to appeal to investors with a higher risk appetite.

Analysts recommend that risk-tolerant investors consider applying, especially given the potential for 18% listing gains.

However, conservative investors should weigh the Offer for Sale nature and sector sensitivities before committing.

Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

The Upcoming IPOs in this week and coming weeks are NSDL, Spunweb Nonwoven, Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control,  Anthem Biosciences.

The Current active IPO are Glen Industries, Smarten Power Systems, Travel Food Services, Chemkart India, Meta Infotech.

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.