Fasten Your Seatbelts: 'Travel Food Services' IPO Cleared for Takeoff, Promises Tasty Gains

Image Source: Daily Excelsior

Travel Food Services Ltd, a dominant player in India’s airport food and beverage sector, is launching its much-anticipated ₹2,000 crore initial public offering (IPO) from July 7 to July 9, 2025. The price band is fixed at ₹1,045–₹1,100 per share, with the entire issue structured as an Offer for Sale (OFS) by promoter Kapur Family Trust—meaning all proceeds will go to the selling shareholder, not the company itself.

Key Highlights:

IPO Details:

Open Dates: July 7–9, 2025
Price Band: ₹1,045–₹1,100 per share
Issue Size: ₹2,000 crore (approx. $233.5 million)
Lot Size: Minimum 13 shares per application; minimum retail investment approx. ₹14,300
Employee Discount: ₹104 per share for eligible employees
Anchor Investor Allocation: July 4, 2025
Listing: BSE and NSE, likely on July 14, 2025

Offer Structure:

100% Offer for Sale: No fresh shares; existing shares sold by Kapur Family Trust
No Capital Infusion: Company will not receive funds; proceeds go to the promoter

Company Profile:

Market Leader: Commands ~26% share in India’s airport QSR segment and 45% in airport lounges by revenue
Operations: 442 QSR outlets, 27 lounges across 18 airports in India, Malaysia, and Hong Kong
Brands: Operates Wendy’s, Subway, and several airport lounges
Financials: FY25 revenue rose 21% to ₹1,688 crore; profit up 27% to ₹380 crore
Valuation: Market cap of ₹14,485 crore at upper band; P/E ratio of 38x, considered attractive versus listed QSR peers

IPO Context:

Follows a surge in Indian IPO activity after a slow start to 2025, with Travel Food Services riding the momentum from HDB Financial Services’ blockbuster debut
The move is seen as a strategic exit for the Kapur Family Trust and a step to boost public shareholding

Source: Reuters, The Hindu Business Line, Moneycontrol, IndiaRetailing, Chittorgarh, VCCircle, HDFCSky