Travel Food Services receives Sebi nod for Rs 2,000 crore IPO

Quick-service restaurant Travel Food Services (TFS) has received approval from the Securities and Exchange Board of India (Sebi) to raise Rs 2,000 crore through an initial public offering (IPO).

This offering is entirely an offer for sale by Kapur Family Trust, with a face value of Re 1 and includes reservations for eligible employees. TFS said it has expanded its operations significantly to include 397 outlets across India and Malaysia as of June 30, 2024, with most located in airports. The company's portfolio utilises 117 partner and in-house brands to cater to the demand for speed and convenience in travel environments.

TFS is present in 14 airports in India, including major ones such as Delhi, Mumbai, and Bengaluru, and three in Malaysia. These airports account for 74 per cent of India's total domestic and international air traffic, according to the CRISIL report.

The company mentioned that it manages the largest network of Travel QSR outlets in India, with 313 of its 340 outlets situated in airports, highlighting its significant presence in the travel sector.

In fiscal 2024, TFS reported a 30.85 per cent increase in revenue from operations, reaching Rs 1,396.32 crore, driven by increased like-for-like sales and net contracts. The profit after tax (PAT) also improved by 18.59 per cent to Rs 298.02 crore. For the three months ended June 30, 2024, the company achieved a revenue of Rs 409.86 crore, with a PAT of Rs 59.55 crore.

The equity shares from the IPO are proposed to be listed on the National Stock Exchange of India Ltd (NSE) and BSE Ltd. Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, and Batlivala & Karani Securities India Private Limited are the book-running lead managers for the issue, with Link Intime India Private Limited acting as the registrar. 

The IPO aims to further bolster TFS' market presence and provide liquidity options for the Kapur Family Trust, enhancing the company's visibility in financial markets.