Travel Food Services' Rs 2,000-crore IPO receives SEBI approval

Travel Food Services IPO

Airport travel quick service restaurant chain Travel Food Services has received approval from the capital markets regulator SEBI to go ahead with the plan of fund raising via initial public offering.

The IPO will comprise of entirely offer-for-sale of shares worth Rs 2,000 crore by promoter Kapur Family Trust.

SEBI has issued observation letter on the draft papers of Travel Food Services on April 22. The issuance of observation letter means the company can float its IPO within the next one year.

As it is a complete offer-for-sale issue, the company will not receive any money from the IPO. All the money, excluding offer expenses, will go to the selling shareholder.

The company had filed preliminary papers with the SEBI on December 10, 2024 for its IPO.

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Travel Food Services' travel QSRs are predominantly situated within airports, with select outlets in highway sites. It utilises food and beverages brand portfolio, comprising 117 partner and in-house brands, in the operation of 397 travel QSRs across India and Malaysia, as of June 2024.

The company claimed to be operating the largest network of travel QSRs (quick service restaurant) outlets and airport Travel QSR outlets in India, with 313 of its 340 operational outlets being situated in airports (including Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai), and the remaining in highway sites.

It also operated the largest network of private lounges in Indian airports as of March 2024, comprising 24 lounges across eight airports in India. It had 32 lounges across India, Hong Kong, and Malaysia, as of July 2024.

Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India), ICICI Securities, and Batlivala & Karani Securities India will act as book running lead managers for the issue.