Travel Food Services IPO Opens with ₹2000 Crore Offer for Sale

Travel Food Services Limited, the market leader in India’s airport travel QSR and airport lounge sectors, has launched its ₹2000 crore IPO. Unlike many mixed issues, this IPO is entirely an Offer for Sale (OFS), meaning all proceeds will go to existing shareholders divesting part of their stakes.

The IPO subscription period runs from July 7 to July 9, 2025, with allotment finalisation on or about July 10, 2025. Shares are expected to list on BSE and NSE on or about July 14, 2025.

The price band has been set at ₹1,045 to ₹1,100 per share, valuing the company at ₹14,484.74 crore at the top band.

Retail investors can bid in lots of 13 shares, with a minimum investment of ₹14,300. High-Net-Worth Individuals (HNIs) are required to bid for at least 14 lots (182 shares), worth approximately ₹2,00,200.

Kotak Mahindra Capital, HSBC Securities and Capital Markets (India), ICICI Securities, and Batlivala & Karani Securities India are acting as the Book Running Lead Managers, while MUFG Intime India Private Limited (formerly Link Intime) is the Registrar for this offering.

Grey Market Premium (GMP) Indicates ₹200 Premium, Suggests 18.18% Listing Gains

As of July 2, 2025, the IPO is showing a Grey Market Premium (GMP) of ₹200. With the top-end IPO price of ₹1,100, this points to an expected listing price of ₹1,300, reflecting a potential 18.18% listing gain.

GMP is an unregulated, unofficial market indicator that reflects sentiment among investors and intermediaries. It does not guarantee a specific listing price, but it is widely used in India as a barometer of demand.

Investors should remember that GMP fluctuates based on real-time demand-supply dynamics in the grey market and does not involve any formal price discovery. It is therefore informational and educational only.

Nonetheless, ₹200 GMP is strong for a large-cap IPO, signalling good pre-listing buzz despite cautious overall market sentiment.

Live Subscription Status: 0.41x on Final Day So Far

As of 11:30 AM on July 9, 2025, Travel Food Services IPO was subscribed 0.41 times overall.

While this figure appears muted compared to SME or smaller issues that often oversubscribe quickly, it is not unusual for large OFS issues where institutional investors tend to submit bids closer to the deadline.

Key points about subscription:

• The entire ₹2,000 crore issue is an Offer for Sale, meaning no fresh capital will enter the company.

• Participation depends significantly on Qualified Institutional Buyers (QIBs) and HNIs, who may bid later in the window.

• Retail participation may be cautious given the higher lot price (₹14,300) per retail application.

Investors will closely watch the final hour subscription data and institutional demand to judge overall confidence in the issue.

Company Overview: India’s Largest Airport QSR and Lounge Player

Travel Food Services Limited is India’s leading player in airport F&B.

In Fiscal 2025, the company held:

• 26% market share in the airport travel QSR segment (including associates and JVs).

• 45% market share in the airport lounge segment.

This dominance is built on decades of experience and a diverse portfolio of brands. It operates QSR outlets, full-service restaurants, cafes, bars, and airport lounges, giving it strategic presence across key Indian airports.

Travel Food Services benefits from long-term concession agreements with major airports, providing stable, recurring revenue streams.

Promoter Background and Ownership

The company benefits from the experience and backing of its promoters:

• SSP Group plc (UK-listed international travel food giant).

• SSP Group Holdings Limited, SSP Financing Limited, SSP Asia Pacific Holdings Limited.

• Kapur Family Trust.

• Varun Kapur and Karan Kapur.

SSP is a global travel F&B operator with a presence in over 30 countries, bringing operational expertise, brand partnerships, and global standards to India.

This backing differentiates Travel Food Services from smaller domestic competitors, giving it scale advantages and robust governance frameworks.

Financial Performance: Strong Revenue and Profit Growth

Travel Food Services has shown consistent financial growth over recent years.

Revenue from Operations:

• FY23: ₹11,035.82 million

• FY24: ₹14,623.95 million

• FY25: ₹17,627.09 million

This indicates a CAGR of ~26% over two years, highlighting post-pandemic recovery in travel demand and the company’s ability to capture traffic growth at airports.

EBITDA:

• FY23: ₹4,580.54 million

• FY24: ₹5,499.93 million

• FY25: ₹6,763.46 million

Profit After Tax:

• FY23: ₹2,512.99 million

• FY24: ₹2,981.20 million

• FY25: ₹3,796.59 million

Profit growth mirrors the company’s operating leverage and margin resilience as travel volumes rebound.

Strong Profitability Ratios and Valuation Metrics

Travel Food Services has reported solid profitability metrics for FY24:

• Pre-issue and Post-issue EPS: ₹27.58.

• Pre-issue and Post-issue P/E ratio: 39.89x.

This compares favourably with the Industry P/E of ~236x, suggesting the IPO is reasonably priced relative to peers.

Other key metrics:

• ROCE: 51.40%

• ROE: 35.47%

• RoNW: 34.64%

These ratios indicate efficient capital use and attractive returns for shareholders, reinforcing the company’s strong fundamentals.

IPO Structure: Pure Offer for Sale

The ₹2,000 crore issue is entirely an Offer for Sale by existing shareholders.

This means no fresh capital is raised for business expansion or debt repayment. Proceeds go to selling shareholders, allowing them to partially monetise holdings while offering investors access to India’s leading airport F&B operator.

While fresh issues often fund growth, a well-received OFS can signal promoter confidence and establish a transparent market price for the stock.

Use of Proceeds and Business Strategy

Because this is a pure OFS, the company will not receive new funds. However, listing will:

• Enable liquidity for existing shareholders.

• Enhance corporate visibility and brand credibility.

• Facilitate future fundraising through equity or debt markets.

Post-listing, Travel Food Services aims to:

• Expand outlets at new and existing airports.

• Grow lounge services, partnerships, and premium offerings.

• Leverage international SSP relationships to introduce new formats and brands.

Risks and Investor Considerations

Investors should be aware of key risks:

• Entirely OFS—no capital for new projects.

• Heavily reliant on airport traffic, vulnerable to travel disruptions.

• Concentration risk, with business tied to select airports.

• Competitive pressures from local and international F&B chains.

Also, IPO subscription data indicates subdued retail demand so far (0.41x at 11:30 AM on July 9), so investors should evaluate final QIB interest carefully before bidding.

Grey Market Premium (GMP) and Listing Outlook

The GMP of ₹200 suggests ~18.18% potential listing gains (₹1,100 + ₹200 = ₹1,300).

Such a premium indicates healthy early interest, despite modest subscription levels at midday.

Investors should remember:

• GMP is unofficial and volatile.

• Actual listing price will depend on final subscription demand, especially from institutional investors.

• Broader market conditions on listing day will also impact pricing.

How to Apply for Travel Food Services IPO

Investors can apply through:

• UPI-enabled broker apps like Zerodha, Groww, Paytm Money.

• ASBA via net banking.

• Stockbrokers offering IPO facilities.

Minimum application: 13 shares (₹14,300) for retail investors.
HNIs need at least 14 lots (182 shares, ~₹2 lakh).

Allotment and Listing Details

Key dates to watch:

• IPO closes: July 9, 2025.

• Allotment finalisation: Expected July 10, 2025.

• Listing date: Tentatively July 14, 2025.

Allotment status can be checked on the Registrar’s website using application number, PAN, or DP ID.

Analyst View and Recommendations

Given its market leadership, robust financials, reasonable valuation vs peers, and strong promoter backing, Travel Food Services is an attractive option for long-term investors.

However, entirely OFS structure and subscription trends warrant caution.

GMP suggests good listing gains, but investors should evaluate:

• Final QIB participation.

• Overall market sentiment.

• Their own risk appetite.

For risk-tolerant investors, this IPO may offer short-term listing gains and long-term exposure to India’s travel infrastructure growth.

Conclusion

Travel Food Services IPO represents India’s leading airport F&B operator, with:

• ₹2,000 crore OFS.

• ₹200 GMP suggesting ~18% gains.

• Strong financials and promoter pedigree.

Investors should weigh benefits against risks, track subscription trends carefully, and apply thoughtfully.

For those betting on India’s aviation growth story, this IPO offers a credible, well-managed, and profitable platform to participate in a fast-growing sector.

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 Monika Alcobev, NSDL, Anthem Biosciences, Spunweb Nonwoven.

The Current active IPO are Smartworks Coworking, Asston Pharmaceuticals, CFF Fluid Control, Glen Industries.

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