Travel food Services files draft papers with SEBI for ₹2,000 crore IPO

Travel food Services Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Travel Food Services opened its inaugural travel quick-service restaurant (QSR) in 2009. The promotion is carried out by SSP Group plc and its subsidiaries—SSP Group Holdings Limited, SSP Financing Limited, SSP Asia Pacific Holdings Limited—along with the Kapur Family Trust, Varun Kapur, and Karan Kapur.

Based in Mumbai, the company dominates the swiftly growing Indian airport Travel QSR and Lounge markets, achieving the highest revenue for Fiscal 2024, as stated in the CRISIL Report.

Its Travel QSR offerings encompass a broad range of food and beverage (F&B) options designed for travelers, such as fast food outlets, cafes, bakeries, food courts, and bars, primarily situated in airports and select highway locations to meet the demands of on-the-go customers.

As of June 30, 2024, the company operates in 14 airports across India, including key hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai, in addition to having a presence in three airports in Malaysia.

In fiscal 2024, Travel Food Service recorded the highest earnings per share (EPS) among its listed industry competitors, including Jubilant FoodWorks, Devyani International, Sapphire Foods India, Westlife Foodworld, and Restaurant Brands Asia.

The revenue from operations rose by 30.85%, reaching ₹1,396.32 crore in fiscal 2024, up from ₹1,067.15 crore in fiscal 2023, driven by an increase in its like-for-like (LFL) sales and net contracts. The profit after tax climbed by 18.59%, reaching ₹298.02 crore in fiscal 2024, compared to ₹251.30 crore in fiscal 2023.

For the quarter ending June 30, 2024, the revenue from operations was ₹409.86 crore, with a profit after tax amounting to ₹59.55 crore.

Issue Details

The initial public offering (IPO) has a face value of Re 1 and consists entirely of an offer for sale amounting to ₹2,000 crore by the Kapur Family Trust. The offer includes designated reservations for subscriptions by eligible employees.

The offer is being conducted through a book-building process, where a maximum of 50% of the net offering is allocated to qualified institutional buyers, while at least 15% and 35% are allocated to non-institutional and retail individual investors, respectively.

Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, and Batlivala & Karani Securities India Private Limited serve as the book-running lead managers, while Link Intime India Private Limited is appointed as the registrar for the issue.

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