Restaurant India News: Travel Food Services Gets Rs 600 Cr from Anchor Investors Before IPO Launch

Mumbai-based Travel Food Services (TFS), a key player in India’s airport-focused food and beverage segment, opened its initial public offering (IPO) for public subscription on July 7, 2025. At the upper price band of Rs 1,100 per share, the company aims to raise Rs 2,000 crore through an offer for sale (OFS) of 18.2 million equity shares. There is no fresh issue component in this IPO.

Ahead of the IPO launch, TFS secured Rs 600 crore from anchor investors at the upper price band. The anchor book includes participation from ICICI Prudential Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Baroda BNP Paribas Mutual Fund, Abu Dhabi Investment Authority, Fidelity, and the Government Pension Fund Global, as per a filing on the Bombay Stock Exchange (BSE).

The IPO is structured with up to 50 percent of the offer reserved for qualified institutional buyers (QIBs), at least 35 percent for retail investors, and at least 15 percent for non-institutional investors. The offer is being made through the book-building process.

The IPO price band has been set between Rs 1,045 and Rs 1,100 per share. The lot size is 13 shares, meaning a retail investor must invest a minimum of Rs 14,300 for one lot. A retail investor can bid for up to 13 lots or 169 shares, which would amount to Rs 1,85,900.

Unlisted shares of TFS have seen modest demand in the grey market ahead of the IPO opening. According to sources tracking grey market activity, shares were trading at Rs 1,130 each, reflecting a premium of Rs 30 or 2.7 percent over the upper band.

The IPO will remain open for bidding until July 9, 2025. The basis of allotment is expected to be finalized on July 10, 2025. The equity shares are scheduled to be listed on both the BSE and NSE on July 14, 2025.

MUFG Intime India, formerly known as Link Intime, has been appointed as the registrar for the IPO. Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India), ICICI Securities, and Batlivala and Karani Securities are the book-running lead managers.

Brokerage firm SBI Securities has recommended subscribing to the IPO, citing TFS’s strong operational footprint in the Indian airport ecosystem. The company operates QSR outlets across major Indian airports and holds concessions at upcoming airports in Greater Noida and Navi Mumbai. The business portfolio includes a mix of third-party international brands like KFC, Pizza Hut, Subway, Bikanervala, and Third Wave Coffee, along with proprietary concepts such as Cafeccino, Curry Kitchen, Idli.com, and Dilli Streat.

According to SBI Securities, “At the upper price band of Rs 1,100, the stock is likely to trade at 39.9x FY25 EPS, which is at a discount to listed QSR companies. TFS has superior margins and return ratios along with a strong balance sheet. We recommend investors to ‘Subscribe’ to the issue at the cut-off price.”

As of March 2025, TFS operated 442 travel QSR outlets across India and Malaysia and managed 37 airport lounges in India, Malaysia, and Hong Kong. The company holds a 26 percent share in the Indian airport travel QSR market and a 45 percent share in the Indian airport lounge segment by revenue.