Travel Food Services Limited (TFS) is set to open its Initial Public Offering (IPO) on Monday, July 7, 2025. The price band for the shares has been set between Rs 1,045 and Rs 1,100 per equity share. This move marks an important step for the company, which operates in the rapidly growing sector of airport travel quick service restaurants (QSR) and lounges.
The IPO will remain open for subscription until Wednesday, July 9, 2025. Investors can bid for a minimum of 13 equity shares, with further bids in multiples of 13. The total offer is worth up to Rs 2,000 crore, fully backed by the Kapoor Family Trust.
Employees eligible for the Employee Reservation Portion will receive a discount of Rs 104 per share. This is a significant incentive for employees to invest in the company’s future.
TFS operates travel QSRs and lounges at airports in India, Malaysia, and Hong Kong. The company is focused on providing fast and convenient food options for travelers. By March 31, 2025, TFS had 127 partner and in-house brands in its food and beverage portfolio.
According to a CRISIL report, TFS holds approximately 26% market share in the Indian airport travel QSR segment and around 45% in the airport lounge sector. Their lounges cater to first-class and business-class travelers, airline loyalty program members, and holders of select credit and debit cards.
As of March 31, 2025, TFS operates at 14 airports in India, three in Malaysia, and one in Hong Kong. The Indian airports include major hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai.
The company has shown impressive growth. For the fiscal year 2025, TFS expects its revenue to rise by 20.87% to Rs 1,687.74 crore, compared to Rs 1,396.32 crore in the previous fiscal year. This growth is attributed to increased like-for-like sales and improved contract profitability. The net profit for the same period is projected to increase by 27.35% to Rs 379.66 crore, up from Rs 298.12 crore in fiscal year 2024.
Leading the IPO process are Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, and Batliwala and Karani Securities India Private Limited. MUFG InTime India Private Limited will act as the registrar for the issue.
The IPO will follow a book-building process. The allocation will be 50% for qualified institutional buyers, 15% for non-institutional investors, and 35% for retail individual investors. This structured allocation is designed to attract a wide range of investors, ensuring a healthy demand for the shares.
TFS’s growth trajectory reflects the changing dynamics of the travel and food service industry. As more people travel, the demand for quick and quality food options at airports is expected to rise. TFS is well-positioned to meet this demand and enhance the customer experience at airports.
Investors looking to participate in this IPO should keep an eye on the opening date and be prepared to place their bids accordingly. This IPO presents a unique opportunity to invest in a company that is part of the booming travel and food sector.
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