Travel Food Services Ipo Kicks Off Today: Should You Subscribe To It?

The first nationalist offering (IPO) of Travel Food Services kicks-off for subscription today, that is, Monday, July 07. The institution is trading its shares successful nan scope of Rs 1,045-1,100 apiece. Investors tin use for a minimum of 13 equity shares and its multiples thereafter. The rumor will adjacent for bidding connected Wednesday, July 09.

The IPO of Travel Foods Services is wholly an offer-for-sale (OFS) of up to 1,81,81,818 equity shares amounting to Rs 2,000 crore by Kapur Family Trust. The institution will not person immoderate proceeds from nan issue. Incorporated successful 2007, Travel Food Services is an Indian airdrome recreation speedy work edifice (Travel QSR) and lounge (Lounge).

Travel Foods Services' F&B marque portfolio, comprising 117 partner and in-house brands, is successful nan cognition of 397 Travel QSRs crossed India and Malaysia, arsenic of June 30, 2024. The Mumbai-based company's Travel QSR and Lounge businesses are coming successful 14 airports successful India and 3 airports successful Malaysia, arsenic of June 30, 2024.

Travel Food Services raised Rs 599 crore from 33 anchor investors arsenic it allocated 54,43,635 equity shares astatine Rs 1,100 apiece. Its anchor book included names for illustration Abu Dhabi Investment Authority, Axis Mutual Fund, Fidelity Investment Trust, Government Pension Fund Global, Whiteoak Capital, Ikigai Emerging Equity Funds, Turnaround Opportunities Fund and more.

For nan financial twelvemonth ended connected March 31, 2025, Travel Food Services reported a nett profit of Rs 379.66 crore, pinch a gross of Rs 1,762.71 crore. The institution clocked a nett profit astatine Rs 298.12 crore pinch a gross of Rs 1,462.40 successful nan financial twelvemonth 2023-24. The institution shall bid a full marketplace capitalization of Rs 14,485 crore.

The institution has reserved shares worthy Rs 4.4 crore for its eligible employees, who will get a discount of Rs 104 successful nan IPO. Of nan nett offer, 50 per cent shares shall beryllium reserved for qualified organization bidders, while non-institutional investors (NIIs) will person 15 per cent for nan allocation. Retail investors will person 35 per cent of allocation successful nan IPO.

Kotak Mahindra Capital Company is nan book-running lead head of nan Travel Food Services IPO, while MUFG Intime India (Link Intime) is nan registrar for nan issue. Shares of nan institution shall beryllium listed connected some BSE and NSE pinch Monday, July 14 arsenic nan tentative day of listing. Here's what a big of brokerage firms said astir nan IPO of Travel Food Services:
 

SBI Securities
Rating: Subscribe

TFS is simply a proxy to nan Indian aviation maturation story. It has a beardown beingness crossed each nan awesome airdrome terminals crossed India arsenic good arsenic concession wins astatine some nan upcoming caller airports astatine Greater Noida and Navi Mumbai. The marque portfolio has a patient operation of 3rd statement and in-house QSR brands, said SBI Securities.

"At nan precocious value set of Rs 1,100, nan banal is apt to waste and acquisition astatine 39.9x FY25 EPS which is astatine a discount to listed QSR companies. TFS has superior margins and return ratios on pinch a beardown equilibrium sheet. We urge investors to 'subscribe' to nan rumor astatine nan cut-off price," it added.
 

Arihant Capital Markets
Rating: Subscribe

With marketplace activity successful airdrome QSRs and Lounges, a diversified marque portfolio, and proven operational expertise, nan institution is good positioned to use from India’s underpenetrated aerial recreation marketplace and beardown road QSR growth, said Arihant Capital Markets.

"Ongoing description successful home and world airports, on pinch integer initiatives to boost like-for-like sales, should thrust sustained double-digit gross growth. The rumor is weighted astatine a P/E ratio of 38.15 times, based connected FY25 EPS of Rs 28.83 per share. We are recommending a 'subscribe' standing for this issue," it added.
 

BP Equities
Rating: Subscribe

With a proven way record, strategical locations, and adaptable formats, nan institution offers semipermanent maturation opportunities aligned pinch India’s aviation maturation trajectory, said BP Equities. "The rumor is weighted astatine a P/E of 39.9 times, based connected FY25 earnings, which represents a discount to listed QSR companies. Therefore, we urge a 'subscribe' standing for nan issue," it said.
 

Canara Bank Securities
Rating: Subscribe

Travel Food Services has created a important competitory moat successful nan airport-centric QSR and lounge business, supported by world partnerships, beardown marque equity, and a wide web crossed high-traffic recreation hubs. Its unsocial airport-focused exemplary benefits from semipermanent contracts, operational complexity, and regulatory barriers that deter caller entrants, said Canara Bank Securities.

"From a valuation standpoint, nan IPO is priced attractively, placed beneath nan assemblage mean of and trades little than nan adjacent mean successful position of price-to-book worth (P/BV). Given its beardown maturation trajectory, first-mover advantage, and resilient business exemplary successful a niche, high-growth segment, we urge a 'subscribe' standing for some listing gains and semipermanent investment," it said.
 

Ventura Securities
Rating: Subscribe

TFS operates a balanced operation of in-house, regional, and world QSRs, pinch 37 in-house brands, 32 world brands, and 58 location brands. The divided successful gross procreation betwixt lounges and QSRs is 52 per cent and 48 per cent, respectively, said Ventura Securities.

"TFS's superior operational costs see manpower and food, which are important components of its disbursal structure. These costs play a cardinal domiciled successful maintaining nan company's work transportation crossed its operations. TFS is besides expanding opportunities successful expressway recreation QSRs," it said 'subscribe' rating.