Travel Food Services (TFS), a leading name in India’s airport dining and lounge services, is all set to hit the primary market with its much-awaited IPO. As air travel in India continues to surge, investors are keenly watching this public issue for both short-term listing gains and long-term growth potential.
Here’s a detailed breakdown of the Travel Food Services IPO, including its Grey Market Premium (GMP), valuation metrics, and price band to help you make an informed decision.
Travel Food Services IPO Overview
The Travel Food Services IPO opens for subscription on July 7, 2025, and will close on July 9, 2025. Unlike many recent IPOs, this issue is purely an Offer for Sale (OFS) worth ₹2,000 crore, meaning all proceeds will go to existing shareholders, including the promoters. There is no fresh equity issue in this IPO.
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IPO Opening Date: July 7, 2025
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IPO Closing Date: July 9, 2025
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Price Band: ₹1,045 – ₹1,100 per share
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Lot Size: 13 shares per lot
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Total Issue Size: ₹2,000 crore (≈$233 million)
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Listing Date: Expected on July 14, 2025, on NSE and BSE
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Offer Structure:
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Qualified Institutional Buyers (QIBs): 50%
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Non-Institutional Investors (NIIs): 15%
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Retail Investors: 35%
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Employee Quota: ₹4 crore reservation
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Grey Market Premium (GMP) and Market Buzz
The IPO has already started creating a buzz in the grey market. The Travel Food Services IPO GMP is currently around ₹92 per share, suggesting a healthy premium over the upper price band of ₹1,100.
This indicates that the expected listing price could hover around ₹1,192, giving a potential upside of 8-9% for early investors. However, it’s important to remember that GMP trends are volatile and can change quickly before listing.
Company Profile and Business Strengths
Travel Food Services is one of India’s largest operators of airport Quick Service Restaurants (QSRs) and lounges. The company has:
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Market Share: ~26% in Indian airport QSRs and ~45% in airport lounges.
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Network: 397 outlets across 14 Indian airports and select international locations.
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Brands: Partnerships with global names like Subway and Wendy’s, along with its own in-house brands.
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Lounge Operations: 37 airport lounges under its portfolio.
As India’s air passenger traffic continues to grow, TFS is well-positioned to benefit from increased demand for high-quality food and premium services at airports.
Financial Performance and Valuation
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Revenue: ₹1,687.7 crore in FY25, reflecting a growth of ~21% year-on-year.
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Net Profit: ₹379.7 crore, a healthy increase of ~27% from the previous year.
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Valuation: At the upper price band, TFS commands a market capitalization of around ₹14,480 crore (~$1.7 billion).
Compared to other players in the hospitality and QSR segment, TFS’s valuations appear high, but they are justified by its leadership position in a niche market and consistent profitability.
Strengths and Risks
Strengths:
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Market leader in the airport F&B and lounge services segment.
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Strong partnerships with global and domestic brands.
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Rising air travel and increased demand for airport dining experiences.
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Consistent growth in revenue and profitability.
Risks:
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Entire IPO is an OFS; no fresh capital for expansion.
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Valuation is on the higher side compared to some peers.
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Dependency on airport traffic, which is sensitive to economic downturns and global crises.
Should You Invest?
The Travel Food Services IPO offers a unique opportunity to invest in a company that dominates a niche yet growing segment in India. The GMP of ₹92 suggests positive sentiment and the potential for listing gains.
For long-term investors, TFS’s strong market presence, consistent growth, and alignment with India’s rising air traffic make it an attractive bet. However, the absence of fresh equity raises questions about future expansion plans, and the high valuation demands careful consideration.
Final Thoughts
If you’re looking for a blend of stability and growth in the hospitality sector, Travel Food Services is worth a closer look. Its position in airport F&B and lounges gives it a first-mover advantage that few competitors can match.
As always, weigh the risks, check your financial goals, and consult your advisor before making any investment decision in the Travel Food Services IPO.
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