Travel Food Services Limited (TFS), a prominent player in the airport-based Quick Service Restaurant (QSR) and lounge segment, has launched its Initial Public Offering (IPO) with the aim to raise ₹2,000 crore. This offer is completely an Offer for Sale (OFS), where the proceeds will go to the existing shareholders. The IPO is set to open on 7th July 2025 and close on 9th July 2025, with the shares expected to be listed on the BSE and NSE by 14th July 2025.
IPO Details and Issue Structure
The IPO consists of 1.82 crore equity shares with a face value of ₹1 per share. The price band is fixed between ₹1,045 and ₹1,100 per share. MUFG Intime India Private Limited has been appointed as the registrar to the issue.
The Travel Food Services IPO follows the book-building process and is structured according to SEBI regulations. A defined share reservation applies for various investor categories:
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Qualified Institutional Buyers (QIBs): not more than 50%
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Retail Individual Investors (RIIs): not less than 35%
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Non-Institutional Investors (NIIs), including HNIs: not less than 15%
The IPO also includes a reservation for eligible employees with a discount applied to the issue price.
Grey Market Premium and Investor Sentiment
As of 4th July 2025, the Grey Market Premium (GMP) for the Travel Food Services IPO was ₹94 per share. With the upper price band at ₹1,100, the implied listing price stands at ₹1,194, suggesting potential listing gains of approximately 8.5%.
Although GMP serves as a measure of market sentiment and listing expectations, it is not an official indicator. Investors should consider it a sentiment tool rather than a guarantee of performance.
Company Background and Operations
Travel Food Services Limited was founded in 2009 and has since grown to become a market leader in airport QSR and lounge services. The company operates across 14 major Indian airports and has a presence in Malaysia, covering a total of 397 QSR outlets and several premium lounges.
Its portfolio includes 117 in-house and franchise brands. The lounges cater primarily to business-class and first-class travelers and are often integrated into airline loyalty programs. TFS has long-standing operations at major airports such as Delhi (14 years), Mumbai (15 years), and Bengaluru (5 years), reflecting operational stability and strong airport partnerships.
Promoters and Shareholding
The promoters of the company include SSP Group plc, SSP Group Holdings Limited, SSP Financing Limited, SSP Asia Pacific Holdings Limited, and Kapur Family Trust. Key individual promoters are Varun Kapur and Karan Kapur.
Before the IPO, the promoters collectively hold 100% of the company’s shares. After the IPO, their holding will reduce to 86.19%, signifying a dilution of about 13.81% of their stake to the public through this offering.
Objective of the IPO
This IPO is entirely an Offer for Sale. The company will not receive any proceeds from this public issue. The primary goal is to enable existing shareholders to monetize part of their holdings. While this limits the immediate inflow of fresh capital into the company, listing on the stock exchanges will increase transparency and visibility.
Financial Performance and Profitability
Travel Food Services has displayed consistent and healthy financial performance over the last few fiscal years.
Annual Financials (in ₹ Crore)
Year Ended | Revenue | PAT | Assets | Net Worth | Debt |
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Mar 2023 | 1,103.58 | 251.30 | 1,332.32 | 651.12 | 31.05 |
Mar 2024 | 1,462.40 | 298.12 | 1,696.44 | 869.05 | 63.78 |
Mar 2025 | 1,762.71 | 379.66 | 1,902.73 | 1,048.45 | 0.00 |
In FY25, the revenue increased by more than 20%, while profit after tax rose by approximately 27%. The company also reduced its debt to zero, strengthening its balance sheet significantly.
Key Technical Ratios and Metrics
The company showcases high efficiency and profitability through various technical ratios:
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PE Ratio: 48.60
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Earnings Per Share (EPS): ₹22.63
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Return on Net Worth (RoNW): 34.64%
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Return on Equity (ROE): 35.47%
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Return on Capital Employed (ROCE): 51.40%
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EBITDA Margin: 40.07%
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PAT Margin: 21.54%
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Price to Book Value: 18.20
These figures suggest that Travel Food Services runs a capital-efficient business model with excellent returns and operating margins.
Comparison with Industry Peers
Travel Food Services stands out among its listed competitors due to its superior margins and profitability.
Company Name | Revenue (₹ Cr) | PE Ratio | EPS | RoNW |
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Travel Food Services | 1,762.71 | 48.60 | 22.63 | 34.64% |
Jubilant Foodworks | 5,696.00 | 221.21 | 3.41 | 10.02% |
Devyani International | 3,589.00 | 2,089.38 | 0.08 | 0.84% |
Sapphire Foods | 2,628.00 | 533.92 | 0.60 | 1.38% |
Westlife Foodworld | 2,410.00 | 974.29 | 0.78 | 2.01% |
While some peers have higher revenues, Travel Food Services shows stronger earnings per share and better return ratios, indicating a more balanced and efficient business model.
Investment Rationale and SWOT Analysis
Strengths
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Market leader in airport QSR and lounge services
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Zero-debt company with high profitability margins
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Diversified brand portfolio with global partnerships
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Strong historical presence at major airports
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Experienced management team and strategic global backing
Weaknesses
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Overdependence on airport-based business
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Vulnerable to disruptions in air travel and tourism
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Offer for Sale structure means no capital raised for growth
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Franchise model exposes the business to third-party performance risks
Opportunities
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Expanding airport infrastructure in India
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Rising air passenger traffic
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Potential for growth in international locations
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Diversification into highway food courts or railway stations
Threats
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Regulatory changes or airport concession policies
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Competitive pressure from both global and domestic brands
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Global events that can affect travel demand (pandemics, conflicts)
IPO Application Process and Bidding Requirements
The minimum lot size for retail investors is 13 shares, amounting to ₹14,300 at the upper price band. The maximum application limit for retail investors is 169 shares or 13 lots (₹1,85,900).
Small HNIs must apply for at least 182 shares (₹2,00,200), and Big HNIs for 910 shares (₹10,01,000) or more.
To apply, follow these basic steps:
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Open or use an existing demat account
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Navigate to your broker’s IPO section
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Select Travel Food Services IPO
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Enter the number of lots and price (or choose cutoff)
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Approve the UPI mandate or ASBA block through net banking
Applying through multiple demat accounts within the family can improve allotment chances. The allotment will be declared on 10th July 2025, with refunds initiated the next day. Shares will be credited before the listing date of 14th July 2025.
Allotment Status and Listing
Investors can check their allotment status on the stock exchange websites or through the registrar’s online portal. You will need your PAN or application number to track the status.
Successful applicants will have the shares credited to their demat account. The stock will debut on BSE and NSE on the tentative listing date of 14th July 2025.
Expert Opinion and Market View
Market analysts suggest that Travel Food Services offers a unique investment opportunity in a niche segment. The company’s financial health is sound, and it operates in a sector poised for continued growth. However, since the IPO is fully priced and purely an OFS, short-term gains may be moderate. Investors looking for long-term exposure to airport infrastructure and services could find value in this offering.
Brokers and analysts recommend medium to long-term holding rather than speculative or short-term trading. The zero-debt status, high operating margins, and scalable model make the stock a strong candidate for steady returns in the years ahead.
Final Verdict
The Travel Food Services IPO presents a compelling case for investors interested in India’s expanding airport ecosystem. With strong fundamentals, high profitability, zero debt, and operational scale, TFS is a standout player in its industry. While the absence of fresh capital limits short-term growth acceleration, the company’s ongoing performance and market share provide a stable foundation for future expansion.
Retail investors looking for a high-quality, long-term play in the consumer services and travel infrastructure space should consider this IPO. It combines operational strength with growth prospects and is supported by strong global and domestic promoters. However, investors should weigh the risks of sector dependency and market conditions before making final decisions.
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