Travel Food Services shares to list on a muted note; stock lists at 2% premium

Shares of Travel Food Services made a muted Dalal Street debut on Monday as the airport hospitality player was listed at Rs 1,126.20 on BSE, a premium of 2.38 per cent over its issue price of Rs 1,100. Similarly, the stock kicked-off its maiden trading session with a premium of 2.27 per cent over the given issue price at Rs 1,125 on NSE.

The listing of Travel Food Services has been below the expectations. Ahead of its listing, shares of Travel Food Services were commanding a grey market premium (GMP) of Rs 32-35 per share in the unofficial market, suggesting a mild listing pop of 3 per cent for the investors. However, the GMP stood around Rs 90, when the issue was formally announced.

The IPO of Travel Food Services ran for bidding between July 07 and July 09. The company offered its shares in the price band of Rs 1,045-1,100 per share with a lot size of 13 shares. The company raised a total of Rs 2,000 crore from its IPO, which was entirely an offer-for-sale (OFS) of 1,81,81,818 equity shares.

The issue was overall subscribed merely 2.88 times, fetching more than 2.19 lakh applications. The portion for qualified-institutional bidders (QIBs) was subscribed 7.70 times. The portion for non-institutional investors (NIIs) and employees were booked 1.58 times and 1.72 times, respectively. However, allocation for retail investors was undersubscribed at only 69 per cent.

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.

Brokerages were mostly positive on the issue, suggesting to subscribe to it. Kotak Mahindra Capital, HSBC Securities & Capital Markets, ICICI Securities and B&K Securities were the book-running lead managers of the Travel Food Services IPO, while MUFG Intime India (Link Intime) was the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with Monday.