Travel Food Services IPO Day 1: Check subscription status, GMP, allotment date & more

The initial public offering (IPO) of Travel Food Services was off to day muted bidding from the investors during the first day of the bidding process from all the categories of the investors. The issue, which kicked off on Monday, July 07, shall close for bidding on Wednesday, July 09.

Travel Food Services is selling its shares in the price band of Rs 1,045-1,100 apiece. Investors can apply for a minimum of 13 shares and its multiples thereafter. It is looking to raise Rs 2,000 crore via IPO, which is entirely an offer-for-sale (OFS) of up to 1,81,81,818 equity shares the promoters of the company.

According to the data, the investors made bids for 12,05,386 equity shares, or 09 per cent, compared to the 1,34,12,842 equity shares offered for the subscription by 3.00 pm on Monday, July 07, 2025. The bidding for the issue shall continue for three-days.

The allocation for retail investors was subscribed 12 per cent, while the portion reserved for non-institutional investors (NIIs) saw a subscription of only five per cent. Allocation of employees was booked 32 per cent. However, the quota set aside for qualified institutional bidders (QIBs) was yet to see any bids as of the same time.

Incorporated in 2007, Mumbai-based Travel Food Services is an Indian airport travel quick service restaurant (Travel QSR) and lounge, present in 14 airports in India and three airports in Malaysia. Its F&B brand portfolio, comprising 117 partner and in-house brands, is in the operation of 397 Travel QSRs across India and Malaysia, as of June 30, 2024.

The grey market premium (GMP) of Travel Food Services has seen a sharp correction amid the rising volatility and muted bidding for the issue. Last heard, the company was commanding a premium of Rs 20 per share in the unofficial market, suggesting only 2 per cent listing gains for the investors. The GMP stood around Rs 30 a day ago and Rs 90 when the price band was announced.

Analysts mostly have a positive view on this issue and suggest subscribing to subscribe it for long-term citing Strong promoter background, solid market share, debt free, positive cash flow, and strong financial with profitability and positive outlook. However, complete offer-for-sale nature of IPO, overhang of more stake sale by promoters, risk of losing business to Udaan Yatri cafe's are some concerns.

Travel Food Services is well-positioned to benefit from India’s rapidly growing aviation sector. It presents a compelling growth opportunity and a strong concession retention rate of 93.9 per cent. It is increasing its footprint across the new airports and highways and has international lounge expansion plans under the ARAYA brand, said Nirmal Bang Securities.

"Revenues and Ebitda have grown at a CAGR of 63 per cent and 87.9 per cent over FY 22-25 with good return ratios of ROCE of 51.4 per cent. At a higher price band, IPO is available at an attractive valuation of EV/Ebitda of 25 times which is below the industry average of 28.6x and thus we recommend a 'subscribe' to the issue," it added.

Ahead of its IPO, Travel Food Services raised Rs 599 crore from 33 anchor investors as it allocated 54,43,635 equity shares at Rs 1,100 apiece. It has reserved a net 50 per cent offer for qualified institutional bidders (QIBs), while non institutional investors shall have 50 per cent of allocation reserved for them. Retail investors will have 35 per cent of allocation in the net offer.

The company has reserved shares worth Rs 4.4 crore for its eligible employees, who will get a discount of Rs 104 in the IPO. Of the net offer, 50 per cent shares shall be reserved for qualified institutional bidders, while non-institutional investors (NIIs) will have 15 per cent for the allocation. Retail investors will have 35 per cent of allocation in the IPO.

Travel Food Services aims to capitalize on the under-penetration of air travel in India by implementing strategies such as utilizing customer insights and behavioral patterns, enhancing its product offerings, improving operational efficiency, and optimizing space utilization. The number of air travelers in India is projected to grow at a rate surpassing the global average, said Anand Rathi.

To capitalize on this positive trend and drive like-for-like sales growth, the company plans to tailor its product offerings and services to better meet customer needs. The company, a leader in QSR services at airports and highways, is expanding its presence in line with rising consumer spending and airport infrastructure development," it added with a 'subscribe for long-term rating.

Kotak Mahindra Capital Company is the book-running lead manager of the Travel Food Services IPO, while MUFG Intime India (Link Intime) is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with Monday, July 14 as the tentative date of listing.