An IPO is being launched by Travel Food Services Ltd on the NSE and BSE mainboard platforms, aiming to raise funds through a book-built offer-for-sale (OFS). The offering includes up to ₹2,000 crore, comprising a total sale of approximately 18.2 million equity shares by the existing promoter group. There is no fresh issue in this IPO, and all proceeds will go to the selling shareholders. The IPO is fully an exit route for the promoters and investors, with the total issue size amounting to ₹2,000 crore.
Company Overview
Travel Food Services Ltd is one of India’s leading travel-focused food and beverage (F&B) service providers, operating a wide network of quick-service restaurants (QSRs), cafés, and premium airport lounges. The company primarily serves passengers at airports, with a growing presence at highway locations and overseas.
As of June 30, 2024, Travel Food Services operated:
- 397 QSR outlets across 14 airports in India and international locations like Malaysia
- 31 airport lounges, including one in Hong Kong launched in July 2024
- A diverse portfolio of 117 brands, including global franchises (like KFC, Subway, Pizza Hut, Krispy Kreme) and in-house offerings
The company holds a 24% market share in airport QSRs and 45% in airport lounge services as per CRISIL (FY24). It leverages partnerships with leading brands and a deep operational footprint to capitalize on the growing Indian air travel and transit food markets.
The business is owned by SSP Group (UK-based travel F&B giant) and the Kapur Family Trust. With consistent revenue and profit growth, the company is now taking the IPO route to provide an exit opportunity for the promoters, as the entire offering is structured as an offer for sale (OFS).
Lot Size & Investment Details
| Investor Type | Lots | Shares | Investment |
|---|---|---|---|
| Retail (Minimum) | 1 | 13 | ₹13,585 |
| Retail (Maximum) | 13 | 169 | ₹1,76,605 (capped by retail limit) |
| HNI (S-HNI) | 14 | 1,90,790 | ₹1,90,790 at upper band |
Financial Highlights
| Particulars | FY22 | FY23 | FY24 |
|---|
| Revenue from Operations | ₹783.5 Cr | ₹1,158.3 Cr | ₹1,396.3 Cr |
| Total Income | ₹793.2 Cr | ₹1,165.8 Cr | ₹1,408.7 Cr |
| EBITDA | ₹160.6 Cr | ₹292.1 Cr | ₹349.8 Cr |
| EBITDA Margin (%) | 20.46% | 25.20% | 25.05% |
| Profit After Tax (PAT) | ₹74.1 Cr | ₹158.6 Cr | ₹298.0 Cr |
| PAT Margin (%) | 9.4% | 13.7% | 21.3% |
| Earnings Per Share (EPS) | ₹3.93 | ₹8.40 | ₹15.78 |
| Net Worth | ₹480.2 Cr | ₹642.7 Cr | ₹940.6 Cr |
| ROCE (%) | 16.3% | 27.4% | 32.8% |
Issue Structure
- The IPO is a 100% Offer for Sale (OFS) with no fresh issue component.
- Total issue size: ₹2,000 crore
- Equity shares offered: Approx. 18.2 million shares
- Promoter Selling Shareholder: Kapur Family Trust
- Post-IPO promoter holding will remain high (~85%+)
Key Risks – Travel Food Services Ltd IPO
No Fresh Issue: The entire IPO is an Offer for Sale (OFS), meaning no capital is being infused into the company. All proceeds go to the selling shareholders, not the business.
Promoter Exit: Significant stake is being offloaded by Kapur Family Trust, raising concerns about long-term promoter commitment, despite post-IPO holding remaining above 85%.
Travel Dependency: Business performance is highly sensitive to air traffic volumes. Disruptions due to pandemics, geopolitical events, or economic downturns can significantly impact revenues.
Limited Diversification: A majority of outlets are concentrated in airport locations, which are subject to regulatory, lease, and passenger flow constraints.
Franchise & Partner Risk: The company operates via global and domestic brand partnerships. Any disruption in brand licensing or franchise agreements can affect operations and revenue.
High Valuation: Based on FY24 earnings, the IPO is valued at a high earnings multiple, which may limit upside if market sentiment weakens.
Competitive Landscape: Faces competition from local and global QSR chains, airport lounge operators, and food aggregators—impacting margins and growth.
Summary
Travel Food Services Ltd is launching a mainboard IPO of approximately 18.2 million shares via a ₹2,000 crore Offer for Sale (OFS). The IPO is entirely an exit route for the Kapur Family Trust, with no fresh issue involved. The company will not receive any proceeds from the offering.
Operating across major airports and highways, Travel Food Services runs 397 quick-service restaurants (QSRs) and 31 premium airport lounges, representing 24% market share in airport F&B and 45% in lounge services. With a strong brand portfolio, rising profitability, and robust growth in India’s travel sector, the company is well-positioned, though the OFS structure and premium valuation may raise investor caution.
Allotment Details – Chemkart India Ltd IPO
Basis of Allotment Finalization: July 10, 2025
Refund Initiation: July 11, 2025
Shares Credited to Demat Accounts: July 11, 2025
Listing Date (NSE & BSE): July 14, 2025 (Tentative)
Registrar: KFin Technologies Ltd
Allotment Status Link: (Will be available on KFintech’s website after allotment)
