Travel QSR Giant Travel Food Services Clears SEBI Hurdle For Mega IPO; Set To Raise Rs 2,000 Cr

After filing its IPO papers with SEBI on December 10, 2024, Mumbai-based Travel Food Services, a major participant in the rapidly expanding Indian airport travel quick service restaurant (Travel QSR) and lounge sectors, achieved SEBI's final observation on Tuesday to raise Rs 2,000 crore through an IPO.

The IPO, which has a face value of Re 1, is simply an offer for sale by Kapur Family Trust to sell up to Rs 2,000 crore, with portions for eligible employees to subscribe to the offer.
The issue's registrar is Link Intime India Private Limited, while the book-running lead managers are Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, and Batlivala & Karani Securities India Private Limited.

The equity shares of Travel Food Services are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.

According to the company's financials, a growth in like-for-like (LFL) sales and net contract caused its revenue to rise by 30.85% from Rs 1,067.15 crore in fiscal 2023 to Rs 1,396.32 crore in fiscal 2024. From Rs 251.30 crore in fiscal 2023 to Rs 298.02 crore in fiscal 2024, profit after tax grew by 18.59%. Revenue from operations was Rs 409.86 crore for the quarter that ended on June 30, 2024, while profit after tax was Rs 59.55 crore.

In 2009, Travel Food Services opened its first quick-service restaurant (QSR) for travellers. By June 30, 2024, it operated 397 Travel QSRs in India and Malaysia using its F&B brand portfolio, which includes 117 partner and in-house brands. As of June 30, 2024, it operated 31 lounges in Malaysia and India. Furthermore, in July 2024, a new Lounge opened its doors in Hong Kong. As of June 30, 2024, it operated at three airports in Malaysia and fourteen in India through its Travel QSR and Lounge businesses.

According to the CRISIL Report, 74% of India's total domestic and international air traffic in Fiscal 2024 was handled by these 14 airports, comprising Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai as examples of such airports. With 313 of the 340 operating outlets located in airports and the rest on highways, it runs the largest network of Travel QSR stores and airport Travel QSR stores in India as of March 31, 2024.