
The initial public offering (IPO) of Travel Food Services managed to sail through during the third and final day of the bidding process, thanks to the strong institutional push. The issue ended day one with 11 per cent bidding and was subscribed 25 per cent as of day two.
Travel Food Services, a prominent player in the airport quick service restaurant sector, is opening its Initial Public Offering (IPO) with shares priced between Rs 1,045 to Rs 1,100. The offering seeks to raise Rs 2,000 crore solely through an offer-for-sale (OFS), involving 1,81,81,818 equity shares. The IPO requires a minimum application of 13 shares.
According to the data, the investors made bids for 3,06,61,774 equity shares, or 2.29 times, compared to the 1,34,12,842 equity shares offered for the subscription by 3.20 pm on Wednesday July 09, 2025. The three-day bidding for the issue, which kicked off on Monday, July 07, shall conclude today.
The allocation for qualified institutional bidders (QIBs) was subscribed 6.01 times, while the portion reserved for non-institutional investors (NIIs) saw a subscription of 1.41 times. Allocation of employees was booked 1.46 times. However, the quota set aside for retail investors was booked only 56 per cent.
The shares will be listed on both BSE and NSE, with July 14 set as the provisional listing date. Kotak Mahindra Capital Company is the lead manager, with MUFG Intime India acting as the registrar. The company's shares for QIBs, NIIs, and RIIs are reserved at 50 per cent, 15 per cent, and 35 per cent respectively.
"We recommend subscribing to this IPO with medium to long term horizon as the issue appears fully priced. The company is leader in QSR related services and F&B outlets on airport and highways. The company reported growing headline numbers. As a niche player and first mover in its segment, it holds a strategic advantage," said Kunvarji Finstock.
Compared to peers average P/BV of 13.1 times and P/E of 863.9 times, Travel Foos Services is reasonably valued, said Eureka Stock & Share Broking Services. "Investors can subscribe to it considering leading player in the Travel QSR and Lounge sectors in Indian airports, diversified portfolio of partner F&B brands, first mover in travel QSR, stable cashflow and strong fundamentals," it said.
Incorporated in 2007, Mumbai-based Travel Food Services operates in 14 Indian airports and three Malaysian airports. The company's extensive portfolio features 117 partner and in-house brands, with 397 quick service restaurants across India and Malaysia. This robust presence supports the company's market competitiveness, despite the complete OFS nature of the IPO and potential overhang from promoter stake sales.
The grey market premium (GMP) for Travel Food Services has witnessed significant volatility. Initially, the GMP was Rs 90 but has plummeted to Rs 8-10, indicating a muted response from investors. This decline suggests a flat listing ahead. The GMP saw a notable correction amidst market volatility and subdued bidding activity.
Its strong and diverse F&B brand portfolio enhances its competitive edge in securing multi-unit airport concessions. Its ability to cater to airport specific F&B preferences, backed by proven brand partnerships and tailored inhouse offerings has driven wins at key airports, said GEPL Capital.
"Based on the FY25 annualized earnings relative to the company's post-IPO paid-up capital, the issue is priced at a P/E ratio of 39.9 times. We believe that the company is fairly valued compared to its peers and healthy has PAT, revenue and Ebitda CAGR of 41 per cent, 26 per cent and 30 per cent CAGR from FY22 to FY24. Therefore, we recommend a 'subscribe' rating for the issue," it said.
Ahead of the IPO, Travel Food Services successfully raised Rs 599 crore from 33 anchor investors, allocating 54,43,635 equity shares at Rs 1,100 each. The IPO has also made provisions for eligible employees, reserving shares worth Rs 4.4 crore at a discounted rate of Rs 104 per share.
Key dates for the IPO include an open date, a close date, and subsequent allotment and listing procedures, all pivotal for interested investors. The tentative listing date is set for July 14, with all processes and confirmations to be completed prior.