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Travel Food Services IPO
Travel Food Services Ltd
₹13,585 /13 sharesMinimum Investment
Travel Food Services IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| BSE | ₹1,100.00 | ₹1,125.00 | ₹25.00 (2.27%) |
Travel Food Services IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 7 Jul ‘25 - 9 Jul ‘25 | ₹13,585 | 13 | ₹1,045 - ₹1,100 |
| Issue Size | IPO Doc |
|---|---|
| 2000.00Cr | RHP PDF |
Subscription rate
As of 09 Jul'25, 05:00 PM
| Qualified Institutional Buyers | 7.70x |
| Non-Institutional Investor | 1.58x |
| Retail Individual Investor | 0.65x |
| Employees | 1.67x |
| Total | 2.86x |
About Travel Food Services
Founded in
2007
Managing director
Mr Varun Kapur
Parent organisation
Travel Food Services Ltd
Travel Food Services Ltd IPO
https://www.youtube.com/watch?v=q-is_I6qkBc
Strengths & Financials of Travel Food Services
Strengths
Risks
Travel Food Services claims to be the leading player in the travel QSR and lounge sectors in Indian airports, with a market share of 24 percent in the travel QSR sector and 45 percent in the lounge sector as of FY24. The company claims to operate the largest network of travel QSRs in India, with 313 out of 340 operational outlets located in airports, as well as 24 lounges across major hubs like Delhi, Mumbai, and Chennai. The company further claims that this extensive presence positions it to capture significant growth in the expanding airport food and beverage (F&B) market.
Travel Food Services claims to have cultivated long-term relationships with leading airport operators, which helps to enhance its credibility and market positioning. As of June 30, 2024, the company claims to have been operating in Delhi for 14 years, Mumbai for 15 years, Bengaluru for five years, and Chennai for 11 years. It has been present in Delhi Terminal 3 and Mumbai Terminal 2 since their inaugurations in 2010 and 2014, respectively. Additionally, it also claims to have been the sole F&B concessionaire and lounge operator in Chennai and Kolkata airports operated by the Airports Authority of India (AAI) since 2014.
Travel Food Services claims to have a broad and diverse portfolio of both partner F&B brands and in-house F&B brands. As of June 30, 2024, the company operated 78 licenced F&B brands from international and regional Indian partners and 39 in-house brands. These include popular global brands such as KFC, Pizza Hut, Wagamama, The Coffee Bean & Tea Leaf, Subway, and Krispy Kreme, as well as regional Indian brands like Bikanervala and Third Wave Coffee. The company claims its ability to offer both global and local flavours, tailored to airport operator needs, strengthens its competitive edge in securing concessions.
Travel Food Services claims to focus on innovative solutions to enhance traveller convenience and elevate the overall experience. They’ve introduced self-ordering kiosks, online ordering, in-airport delivery, and contactless payment systems to streamline service times. Their "Food@Gate" service allows travellers to order food via kiosks or mobile and have it delivered to the boarding gate. Additionally, the company claims to adapt menus and pricing to local demographics, offering regional product innovations, such as live sweet counters in Kolkata and local-style dosas in Bengaluru. The company also claims to offer personalised services like à la carte menus, spa services, live music, and interactive entertainment to create a premium lounging experience.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 389.61 crore in FY22 to Rs 1,067.15 crore in FY23, finally reaching Rs 1,396.32 crore in FY24. PAT dramatically increased from Rs 5.03 crore in FY22 to Rs 251.30 crore in FY23, and Rs 298.02 crore in FY24.
The company’s top five airports situated in Bengaluru, Chennai, Delhi, Kolkata and Mumbai contributed Rs 349.26 crore (85.21 percent) in the three months ended June 30, 2024, Rs 1,233.77 crore (88.36 percent) in FY24, Rs 963.51 (90.29 percent) in FY23, and Rs 343.21 (88.09 percent) to its revenue in FY22. A decrease in passenger traffic at these major airports or failure to renew concession agreements could materially affect the company’s financial performance.
Travel Food Services depends heavily on its relationships with brand partners for its travel QSR business. The company generated Rs 114.14 crore (53.07 percent) of its revenue from partner brands in the three months ended June 30, 2024, Rs 398.98 (54.44 percent) in FY24, Rs 291.46 crore (54.06 percent) in FY23, and Rs 129.97 crore (53.73 percent) in FY22. If the company loses key franchised brands or is unable to secure new ones, it could face increased costs and reduced revenue potential.
The company relies on long-term relationships with lounge partners, including airlines and financial institutions, for its lounge services. Revenue from lounge services accounted for Rs 185.97 crore (45.37 percent) of total revenue for the three months ended June 30, 2024, Rs 623.49 crore (44.65 percent) in FY24, Rs 492.42 crore (46.14 percent) in FY23, and Rs 127.64 crore (32.76 percent) in FY22. If the agreements with key lounge partners are terminated or not renewed, Travel Food Services could face significant revenue loss.
The company, one of its subsidiaries, some promoters, and directors are involved in certain ongoing legal proceedings. Any adverse judgments in any of these cases could be detrimental to the company’s business prospects.
The company has previously been non-compliant with provisions of the Companies Act, including delays in holding statutory meetings and procedural lapses in securing approvals and appointing auditors. It has filed compounding applications and paid applicable penalties to the Registrar of Companies (RoC). While these matters have not had a material adverse impact so far, any future non-compliance or enforcement action may result in penalties, reputational harm, and disruptions to business operations.
The company experiences significant seasonality, with sales typically peaking during holiday periods, weekends, and festive seasons due to higher traveller volumes at airports and highway sites. Any inability to address this fluctuation in demand could adversely affect its business and financial condition.
The company has issued bank guarantees worth Rs 148.43 crore in favour of airport authorities. Although the management believes there is little likelihood of this liability materialising, if it does happen, it could adversely affect the company’s business and financial position.
As of October 31, 2024, the company had outstanding financial indebtedness of Rs 258.62 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.
Travel Food Services Financials
*All values are in Rs. Cr
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Application Details of Travel Food Services IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹1045 - 1100 | ₹2 Lakh |
| Employee | ₹941 - 996 | ₹2 Lakh |
| High Networth Individual | ₹1045 - 1100 | ₹2 - 5 Lakh |
For Travel Food Services IPO, eligible investors can apply as Regular & Employee.