Travel Food Services IPO: Strengths, risks, financials and 10 key points to consider before ₹2,000 crore offer opening

Travel Food Services IPO: Airport quick-service restaurant operator Travel Food Services' mainboard initial public offering will open for public subscription on Monday, July 7. The price range has been fixed at ₹1,045 to ₹1,100 per share. The company's shares will hit the secondary market on July 14.

Travel Food Services IPO: 10 key points to know

1. Travel Food Services IPO subscription period: The initial public offering will be open from July 7 to July 9.
2. IPO offer structure: It is solely an offer for the sale of 1.82 crore equity shares aggregating to ₹2,000 crore.
3. Travel Food Services IPO price band: The price range of the offer is set between ₹1,045 to ₹1,100 per share.
4. Reservation: Half of the net offer is kept aside for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors.
5. Travel Food Services IPO lot size: An application consists of 13 shares.
6. Objectives: As the issue is entirely an OFS, the company will not get any proceeds from the offer.
7. Book-running lead manager: Kotak Mahindra Capital Company, HSBC Securities, Batlivala & Karani Securities, and ICICI Securities are the book-running lead managers of the public offer.
8. Registrar: MUFG Intime India Pvt Ltd (formerly Link Intime) is the registrar.
9. Travel Food Services IPO allotment date: The basis of allotment will likely be finalised on July 10.
10. Travel Food Services IPO listing date: The listing on the NSE and the BSE will occur on July 14.

Travel Food Services IPO: Strengths

• According to the CRISIL Report, the company is among leading players in travel QSR and lounge sectors in airports in India as per the revenue in the financial year 2024-25. Its network spanned 14 airports in major hubs like Delhi, Mumbai, Bengaluru, Chennai, and Hyderabad, which had collective airport traffic of 303 million passengers in FY25. These airports accounted for 89% of the total airport traffic in the 20 largest airports in the country.
• The company has a deep set of expertise in operating and handling food and beverage business in the operationally complex and highly secure airport environment.
• It has long-term working relationships with airport operators. It has a presence of more than 15 years in Delhi and Mumbai airports. Eleven years of experience in Chennai and Kolkata airports and six years of presence in Bengaluru airport.

Travel Food Services IPO: Risks

• The firm derived 95.55% of revenue from operations in FY25 from travel QSRs and lounges, with 85.94% of it coming from the top 5 airports. Termination of the concession agreement or a decrease in passenger traffic can impact revenue.
• Revenue from franchised brand partners stood at 54.37% of Travel QSR revenue in FY25. Failure to attract new brand partners or maintain existing ones could affect business.
• There are outstanding legal matters against the firm, certain promoters and directors and one of its subsidiaries. Any adverse decision in such cases may render the company liable to liabilities or penalties, which may affect business.

Travel Food Services IPO: Financials

Travel Food Services' revenue from operations increased 20.86% to ₹1,687.73 crore in FY25, compared to ₹1,396.32 crore a year back.

The net profit climbed 27.34% to ₹379.65 crore in fiscal 2025 as against ₹298.12 crore in the previous year.