Travel food services IPO: The public issue of Airport Travel Quick-Service Restaurant (Travel QSR) and Lounge Segment company Travel Food Services Limited (TFS) is going to open on July 7. Earlier, the company has raised Rs 600 crore from anchor investors. The anchor book was attended by ICICI Prudential Mutual Fund (MF), Axis MF, Kotak MF, Baroda BNP Pariba MF, Abu Dhabi Investment Authority, Fidelity and Government Pension Fund Global.
According to the circular uploaded on the BSE website, the travel food services has allocated 54,43,635 equity shares to 33 funds at a price of Rs 1100 per share. Thus the total size of the transaction was Rs 598.8 crore. Kotak Mahindra Capital Company, Book Running Lead Manager for IPO. At the same time, MUFG Inteime is India Private Limited Registrar.
How much is the price band for IPO
The price band for Travel Food Services IPO is Rs 1045-1100 per share and lot size 13 shares. The size of the IPO is Rs 2,000 crore. In this, only the offer of 1.82 crore shares from the existing shareholders will be for sale. Therefore, the entire money of the IPO will go to the share sales. The company will not get anything. Closing will be on 9 July. After this, the allotment will be finalized on July 10 and the listing of shares is expected on BSE, NSE on 14 July.
Promoters of Travel Food Services include SSP Group PLC, SSP Group Holdings Limited, SSP Financing Limited, SSP Asia Pacific Holdings Limited, Kapoor Family Trust, Varun Kapoor and Karan Kapoor. The Kapoor Family Trust does business under the K Hospitality brand. The trust currently holds a 51% stake in the company. The remaining 49% stake with SSP Asia Pacific holdings.
How big is Travel Food Services Business
The portfolio of travel food services includes fast food, cafes, bakery, food courts and bars. These are mainly located at airports and some highway locations. TFS travel QSR business is spread over a diversified range of passengers speed and convene convene requirements. By June 30, 2024, the company was operating 397 Travel QSR outlet. These include 335 outlets at 14 airports in India, 30 at 3 Malaysian airports and 32 on 8 highway locations in India. Of these, 340 outlets manage TFS and its subsidiaries, while 57 are operated through associates and joint ventures.
In the lounge segment, TFS operates premium space inside the airport terminals, which is accessible for first and business-class passengers, loyalty programs members members and selected credit or debit cards. By June 30, 2024, the company was managing 31 lounges in India and Malaysia. An additional lounge was opened in Hong Kong in July 2024.
What indication from gray market on listing
Travel Food Services shares are trading at a premium of Rs 1100 to Rs 92 or 8.36% in the gray market in the gray market. The gray market is an unauthorized market where shares of a company trades it till its listing. In FY 2024-25, the company’s revenue increased by 21 percent to Rs 1,762.71 crore. A year ago it was Rs 1,462.40 crore. The net profit increased by 27 percent to Rs 379.66 crore, which was Rs 298.12 crore in FY 2024.
