Introduction to Travel Food Services IPO
Travel Food Services Limited (TFS), one of India’s prominent Travel QSR and airport lounge service providers, is coming up with its IPO. With the increasing passenger footfall in Indian airports and evolving travel trends, TFS is well-positioned in a niche segment. This Travel Food Services IPO Review covers detailed insights on its IPO Date, Price, Size, GMP, Financials, and whether you should Subscribe or Avoid this issue.
About Travel Food Services Limited
Established in 2007, Travel Food Services Limited is a leading F&B and lounge service provider in India. The company operates through two core verticals:
- Travel QSR (Quick Service Restaurants) across 14 airports in India and 3 in Malaysia
- Airport Lounges under its brand “Araya,” targeting premium customers
As of June 30, 2024, TFS operates 397 QSR outlets and multiple lounges, with a brand mix of 117 partner and in-house labels.
Competitive Strengths
- Market Leader in airport F&B services and lounges in India
- Diverse Brand Portfolio with global, regional, and in-house brands
- Deep Airport Presence: Present in major Indian airports (Delhi, Mumbai, Bengaluru, Chennai, Hyderabad)
- Strong Financial Performance with growing revenues and profits
- Strategic Promoter Support from SSP Group and Kapur Family
Travel Food Services IPO Issue Details
| Particulars | Details |
|---|---|
| IPO Open Date | July 7, 2025 |
| IPO Close Date | July 9, 2025 |
| Listing Date (Tentative) | July 14, 2025 |
| IPO Price Band | ₹1045 to ₹1100 per share |
| Face Value | ₹1 per share |
| Market Lot | 13 Shares |
| Minimum Investment (Retail) | ₹1100 x 13 = ₹14,300 |
| Issue Size | ₹2,000 Crores (Offer for Sale only) |
| Employee Discount | ₹104 per share |
| Listing At | NSE, BSE |
Note: Entire IPO is Offer for Sale (OFS); Company will not receive any proceeds.
Objects of the IPO
Since the entire IPO is an Offer for Sale by the Kapur Family Trust, the company will not receive any funds. The objective is to enable the promoter to partially exit and unlock value.
Financial Performance
Here are the financials of TFS for the last three years:
| Financial Year | Revenue (₹ Cr) | PAT (₹ Cr) | EBITDA Margin | ROE |
|---|---|---|---|---|
| FY 2023 | 1,103.6 | 251.3 | 41.5% | 38.6% |
| FY 2024 | 1,462.4 | 298.1 | 37.6% | 34.3% |
| FY 2025 | 1,762.7 | 379.7 | 40.1% | 35.5% |
TFS has shown consistent growth in revenue and profit over the last 3 years. High EBITDA margins and return ratios reflect strong operational efficiency.
Travel Food Services IPO Valuation: P/E Ratio vs Peers
At the upper price band of ₹1100 and FY25 EPS of ₹22.63, the P/E works out to 48.6x. Here is the comparison with listed peers:
| Company | P/E Ratio |
|---|---|
| Devyani International | 96.3x |
| Sapphire Foods | 76.2x |
| Barbeque Nation | 60.1x |
| Travel Food Services | 48.6x (IPO) |
Valuation is relatively reasonable considering TFS’ niche position and strong brand ecosystem.
Grey Market Premium (GMP) of Travel Food Services IPO
As per the latest grey market trends, Travel Food Services IPO GMP is around ₹40-50 per share, indicating moderate investor interest. This GMP trend may vary closer to listing.
Reasons to Invest in Travel Food Services IPO
- Leading player in Travel QSR & airport lounges with limited listed peers
- Strategic presence in high-traffic Indian airports
- Strong revenue and PAT growth
- Backed by reputed promoters (SSP Group)
- Robust margins and financial ratios
Risk Factors in Travel Food Services IPO
- Entirely an OFS; no proceeds go to the company
- Highly dependent on the travel and airport ecosystem
- Regulatory risks related to F&B and airport contracts
- Limited pricing power in some segments
How to Apply for Travel Food Services IPO?
You can apply through:
- Net banking ASBA (SBI, HDFC, ICICI, etc.)
- UPI-based apps like Zerodha, Groww, Paytm Money
- Broker Platforms with pre-filled IPO forms
Make sure UPI mandate is accepted before 5 PM on July 9, 2025.
Conclusion: Should You Invest in Travel Food Services IPO or Avoid?
Travel Food Services IPO appears to be a reasonably priced offering in a niche segment with no direct listed peer offering a similar scale in QSR and lounge services at airports. Strong financials, brand portfolio, and airport contracts offer long-term visibility.
High Risk Investors can Invest for Medium to Long Term perspective.
FAQs about Travel Food Services IPO
- What is Travel Food Services IPO Date?
IPO opens on July 7, 2025 and closes on July 9, 2025. - What is the GMP of Travel Food Services IPO?
As of now, GMP is around ₹40-50 per share. - What is the lot size and minimum investment?
One lot is 13 shares; minimum investment is ₹14,300. - Is Travel Food Services IPO good or bad?
Based on financials and valuation, it looks good for medium to long-term. - How much is the P/E Ratio of this IPO?
The IPO is priced at 48.6x FY25 EPS. - Will the company get any money from IPO proceeds?
No. This is an Offer for Sale; proceeds go to promoter (Kapur Family Trust). - Where will the shares be listed?
Shares will be listed on NSE and BSE.
Disclaimer: This article is for informational purposes only and not a recommendation to invest. Please consult your financial advisor before investing in IPOs.
- Patel Retail IPO Review – Should you Subscribe or Avoid? - August 19, 2025
- Documents Needed to Open Savings Account with Zero Balance - August 19, 2025
- Muthoottu Mini NCD August 2025 Review – Interest Rates, Ratings & Full Analysis - August 19, 2025
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.