Travel Food Services files draft papers with SEBI to raise Rs 2,000 crore via IPO

TFS held a 24% revenue market share in India’s airport Travel QSR sector and a 45% share in the airport lounge market for fiscal 2024.

Travel Food Services Ltd (TFS) has filed draft papers with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) to raise up to Rs 2,000 crore. The IPO is a pure offer-for-sale by the Kapur Family Trust, which currently holds a 51% stake in the company, while SSP Asia Pacific Holdings owns the remaining 49%. Kotak Mahindra Capital, HSBC Securities, ICICI Securities, and Batlivala & Karani Securities are the lead managers for the issue.

TFS is a leading player in India’s fast-growing airport travel quick-service restaurant (Travel QSR) and lounge segments. Its Travel QSR business spans a wide range of curated food and beverage concepts, catering to the speed and convenience needs of travelers. As of June 30, 2024, the company operated 397 Travel QSR outlets, including 335 across 14 airports in India, 30 in two Malaysian airports, and 32 along eight highway locations in India. Of these, 340 outlets are directly managed by TFS and its subsidiaries, while 57 are operated through associates and joint ventures.

In the lounge segment, TFS operates premium spaces within airport terminals, accessible to first and business-class passengers, loyalty program members, and select credit or debit cardholders. As of June 30, 2024, the company managed 31 lounges across India and Malaysia, with an additional lounge opened in Hong Kong in July 2024. TFS held a 24% revenue market share in India’s airport Travel QSR sector and a 45% share in the airport lounge market for fiscal 2024.

For fiscal 2024, TFS reported revenue of Rs1,396.32 crore, up from Rs1,067.15 crore the previous year, while net profit rose to Rs298.02 crore from Rs251.29 crore in fiscal 2023.