SSP Group’s TFS IPO Cleared for Takeoff: India’s Travel Food Giant Heads to the Bourses!

TFS IPO Gets Regulatory Approval: SSP Group PLC has received 'in principle' regulatory approval for the initial public offering of its Indian joint venture, Travel Food Services (TFS). The Draft Red Herring Prospectus (DRHP) was filed, and the IPO—an offer for sale by the Kapur Family Trust—is slated to open in Spring 2025, subject to final SEBI approval and market conditions. SSP will raise its holding to 50.01% prior to the IPO, ensuring majority ownership of TFS as it becomes a publicly traded company on the BSE and NSE.

 

IPO Structure and Strategic Reason: The IPO will not yield proceeds to TFS or SSP since it is purely an offer for sale by the current promoter. The action is aimed at consolidating SSP's ownership, increasing TFS's market reach, and positioning the business for the next stage of growth in India's fast-expanding air travel and food services industry.

 

Disciplined Capital Spending: SSP Group is budgeting for FY26 capital spending less than €200 million, and less than £260 million for FY25, with a continued emphasis on disciplined spending and strong return. The company's investment appraisal process aims for a post-tax IRR greater than 20%, having historically achieved this threshold.

 

Overhead Cost Reduction Programme: SSP has initiated a new overhead cost reduction programme, to be implemented across the second half of FY25. The programme aims to support margin growth and propel returns momentum into FY26, enhancing the group's financial robustness and growth aspirations.

 

Market Outlook: The IPO of TFS and cost initiatives will be expected to unleash additional value for shareholders, increase SSP's hold in India, and enable sustainable, profitable growth.

 

Source: SSP Group PLC, Business Standard, Shares Magazine, Investing.com