Travel Food Services IPO subscribed 10% on Day 1; should you subscribe? Check GMP, other key details

Travel Food Services IPO subscription begins on July 7. 

Travel Food Services initial public offer (IPO) got subscribed 10 percent on the first day of bidding on Monday. The Rs 2000-crore initial share sale received bids for about 14 lakh shares against 1.34 crore shares on offer, as per NSE data.

Travel Food Services operates a travel quick-service restaurant and a lounge business across airports in India and Malaysia.

The portion for Qualified Institutional Buyers (QIBs) got subscribed 7 percent while the quota for non-institutional investors fetched 6 percent subscription. Retail Individual Investors (RIIs) part received 14 percent subscription. Earlier, it garnered nearly Rs 600 crore from anchor investors.

The IPO, with a price band of Rs 1,045 to Rs 1,100 per share, opened on for public subscription on July 7 and will conclude on July 9. The proposed IPO is entirely an offer for sale (OFS) of shares worth Rs 2,000 crore by promoter Kapur Family Trust. The offer includes reservations for subscriptions by eligible employees.

Check All IPO News

Travel Food Services IPO: Should you subscribe?

Bhavik Joshi, Business Head, INVasset PMS, noted "As revenues from major airports shift from direct topline recognition to "share of profits from joint ventures," it’s crucial for analysts to reframe their evaluation of TFS’s financial health. Instead of focusing solely on revenue, a more accurate lens is core EBITDA plus JV contributions. While this may make reported growth appear muted, it actually reflects a stronger, more resilient earnings base.

"The IPO provides access to a dominant, capital-efficient player in India’s airport ecosystem—an industry closely tied to domestic consumption and GDP growth. Beyond numbers, it’s about long-term optionality, steady margins, and an efficient scale-up model. The valuation reflects this nuanced opportunity—less about surface metrics, more about structural strength," he added.

The company's presence spans 14 airports in India, including major hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai, as well as three airports in Malaysia, as of June 30, 2024.

Bajaj Broking in its IPO note, said "The company has posted steady growth in its top and bottom lines. As it enjoys niche place in the segment and will be the first mover, post listing fancy for this counter is not ruled out."

"TFSL is a leader in QSR related services and F&B outlets on airports and highways. It has its outlets on major airports in India and is planning to expand the same in line with the higher spending and infra developments on airports constructions," added.

Travel Food Services IPO GMP

According to platforms tracking the grey market activities, the shares of the company are commanding a GMP of around 3 percent in the unregulated market. Investorgain quoted a GMP of Rs 30 for the shares of the company, indicating a listing gain of 2.73 percent.

Shares of the company are proposed to be listed on the NSE and the BSE on July 14, while the allotment is expected on July 10.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.