Travel Food Services IPO Lands Softly, Subscribed Just 27% Despite Strong Anchor Backing

The ₹2,000 crore initial public offering (IPO) of Travel Food Services Ltd concluded on July 9, 2025, with a muted investor response. Despite strong anchor backing and a dominant position in India’s airport food and lounge segment, the IPO was subscribed only 27% by the end of the three-day bidding window, according to exchange data.

 

Key Highlights:

 

The IPO, entirely an offer for sale (OFS) by the Kapur Family Trust, received bids for 35.7 lakh shares against 1.34 crore shares on offer.

 

Retail investors subscribed to 31% of their allotted quota, while non-institutional investors (NIIs) and qualified institutional buyers (QIBs) subscribed 28% and 19%, respectively.

 

The employee quota saw the highest traction with 80% subscription.

 

The price band was set at ₹1,045–₹1,100 per share, with a minimum lot size of 13 shares.

 

Market Context:

 

Ahead of the IPO, the company raised ₹599 crore from marquee anchor investors including ICICI Prudential MF, Abu Dhabi Investment Authority, Axis MF, and HDFC Life.

 

Despite a modest grey market premium of ₹8–₹9, indicating a potential 0.7% listing gain, overall investor sentiment remained cautious.

 

The IPO’s lack of fresh issue meant no capital inflow to the company, with all proceeds going to the selling shareholder.

 

Outlook: With listing scheduled for July 14, market participants will closely watch post-IPO performance amid tepid subscription and broader market volatility. Analysts suggest long-term potential remains intact given the company’s 45% share in India’s airport lounge segment.

 

Sources: Financial Express, Economic Times, Business Standard, Zee Business