Travel Food Services IPO Sees Tepid Response Despite Strong Brand Presence

Mumbai, 8 July 2025: Travel Food Services Limited’s ₹2,000 crore initial public offering (IPO) has garnered a lukewarm response from investors by the end of Day 2, with total subscription reaching just 0.26 times. The IPO, which opened for bidding on July 7, will close on July 9. Despite its extensive presence across major Indian airports, the public issue is yet to attract robust investor interest.

Retail Participation Modest, Institutional Demand Underwhelming

Investor interest in the IPO has remained cautious, with the retail category subscribed 0.30 times and the non-institutional investor (NII) segment at 0.25 times. Qualified institutional buyers (QIBs), who typically drive large IPOs, subscribed only 0.19 times their allocation by 5:04:36 PM on July 8.

• Retail investors bid for 19,05,904 shares against 63,50,909 on offer, amounting to ₹209.65 crore.
• NIIs placed bids for 6,76,390 shares versus 27,21,818 offered, contributing ₹74.40 crore.
  • Bids above ₹10 lakh (bNII) accounted for 4,40,687 shares.
  • Bids below ₹10 lakh (sNII) amounted to 2,35,703 shares.
• QIBs bid for 7,06,095 shares out of 36,29,090, totalling ₹77.67 crore.
• Employee quota received 0.77 times subscription, with 31,135 shares bid for out of 40,382.

Cumulatively, 33,19,524 shares were bid for out of 1,27,42,199 shares offered to the public (excluding anchor investors), amounting to ₹365.14 crore through 1,01,321 applications.

Day-wise Momentum Builds Slightly but Still Far from Full Subscription

Although Day 2 saw improved traction across all categories, the overall subscription remains below expectations. On Day 1, the issue was subscribed only 0.11 times. Day 2 recorded an increase, bringing total subscription to 0.26 times.

• QIB: from 0.07 (Day 1) to 0.19 (Day 2)
• NII: from 0.07 to 0.25
• Retail: from 0.15 to 0.30
• Employees: from 0.39 to 0.77

Issue Size and Structure Offer Balanced Allocation but Limited Excitement

The Travel Food Services IPO comprises a total of 1.82 crore equity shares, offered entirely through an offer for sale. The price band is set at ₹1,045 to ₹1,100 per share, with a minimum lot size of 13 shares.

• Retail investors are offered 63,50,909 shares worth ₹698.60 crore.
• QIBs are allocated 90,72,725 shares, accounting for ₹998 crore.
• NIIs are offered 27,21,818 shares worth ₹299.40 crore.
  • bNII: 18,14,545 shares
  • sNII: 9,07,273 shares
• Anchor investors have already subscribed to 54,43,635 shares worth ₹598.80 crore.
• Employees are offered 40,382 shares at a discounted rate of ₹104 per share.

The total issue size stands at 2,36,29,469 shares, aggregating to ₹2,599.24 crore.

Key IPO Dates and Allotment Schedule Announced

Investors can subscribe to the IPO until July 9, 2025. Allotment is expected to be finalised on July 10, with listing tentatively scheduled for July 14 on both BSE and NSE.

• IPO Bidding Window: July 7–9, 2025
• Allotment Date: July 10, 2025
• Listing Date: July 14, 2025
• Face Value: ₹1 per share
• Issue Type: Bookbuilding IPO
• Lot Size: 13 shares (Minimum investment: ₹13,585)

Kotak Mahindra Capital Company Limited is the lead book-running manager, and MUFG Intime India Pvt. Ltd. (Link Intime) is the registrar.

Established Presence Across Airports, Yet Investors Wait for Clear Signals

Founded as a travel-centric food and lounge services provider, Travel Food Services Limited operates 397 quick service restaurants (QSRs) and lounges across 14 Indian airports and three in Malaysia. Its portfolio includes 117 brands—both in-house and partnerships—across diverse cuisines.

• The company has maintained a presence at:
  • Delhi Airport for 14 years
  • Mumbai Airport for 15 years
  • Bengaluru Airport for 5 years
  • Chennai Airport for 11 years

Its lounge services cater to premium passengers and members of loyalty or credit card programmes, reinforcing its premium brand image in travel F&B.

Despite strong fundamentals and a prominent footprint in airport hospitality, the IPO’s current subscription suggests investors are exercising caution, possibly awaiting greater clarity on post-listing valuations and market sentiment.

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations