IPO Launch and Price Band
Travel Food Services Limited (TFS) commenced its ₹2,000 crore IPO on July 7, 2025, featuring an entirely offer-for-sale (OFS) model. Investors can bid within a price range of ₹1,045 to ₹1,100 per share, with a minimum lot size of 13 share units, equivalent to ₹13,585 per application 0.
Subscription & Grey Market Premium
By mid-day on Day 2, the IPO garnered 0.12× overall subscription—retail at 0.16×, non-institutional at 0.09×, and QIB at just 0.07× 1. Meanwhile, grey market activity points to a ₹30 premium, anticipating a listing at approximately ₹1,130 (+2.7%) 2.
Anchor Investors & Leadership
Prior to launch, TFS secured ₹598.8 crore from anchor investors including Fidelity, Abu Dhabi Investment Authority, Global Government Pension Fund, WhiteOak, and ICICI Prudential 3. The IPO is managed by Kotak Mahindra, HSBC, ICICI Securities, and Batlivala & Karani, with MUFG Intime as registrar 4.
Financial Strength & Expansion
For FY25, TFS posted ₹1,762.7 crore in revenue—a 20.9% leap—and EBITDA rose 34% to ₹676.4 crore; profits reached ₹379.7 crore, up 27.3%. The firm operates debt-free and extends across 442 QSR outlets in India, Malaysia, and Hong Kong, plus 37 lounges 5.
Industry Context & Peer Positioning
TFS holds ~26% market share in airport Quick-Service Restaurants and 45% in lounge services. It counts global and in-house brands like KFC, Starbucks, Caféccino, and idli.com. Industry growth is projected at 17–19% CAGR through FY34 6.
Valuation & Broker Views
The IPO trades at a P/E of 39.9× (upper band), cheaper than listed QSR peers. Brokers such as Ventura and BP Equities recommend subscription, highlighting strong margins—40% EBITDA and 21.5% PAT 7.
Key Timelines Ahead
The bidding window closes July 9, with allotment expected July 10 and listing on BSE/NSE from July 14 8. Investors should note TFS is an OFS-only IPO—the company receives no proceeds—aiming instead to monetize promoters’ holdings.
Trivia Worth Knowing
Trivia buffs: TFS is one of India’s fastest-growing airport QSR chains, zero-debt, and backed by UK’s SSP Group. A ₹30 GMP implies ~2.7% listing gain—useful for quiz questions about IPO economics.
Source: News 18