IPO Details
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Schedule of Travel Food Services Ltd IPO
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About Travel Food Services Limited IPO
Travel Food Services Limited is preparing to launch its IPO, which will be entirely an Offer for Sale by the Promoter Selling Shareholder, Kapur Family Trust, aggregating up to ₹2000 crores. The IPO offers equity shares with a face value of ₹1 each.
Objectives of Travel Food Services Limited IPO
The company proposes to use the net proceeds from the IPO for:
(i) to carry out the Offer for Sale of up to [●] Equity Shares bearing face value ₹1 aggregating up to ₹2000 crore by the Promoter Selling Shareholder
(ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges.
Travel Food Services Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | NA |
Offer for Sale | Up to ₹2000 crores |
EPS (in ₹) for FY 24 | 21.85 |
Travel Food Services Limited IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the net offer |
Non-institutional Investors (NIIs) | Not more than 15% of the net offer |
Retail-individual Investors (RIIs) | Not more than 10% of the net offer |
Industry Outlook
The travel food services sector in India is poised for substantial growth, driven by increasing domestic and international travel. The organised food and beverage market at airports and railways is expanding rapidly due to improved infrastructure and growing passenger traffic. Government initiatives to privatise airports and enhance railway services further bolster opportunities for this industry.
Company Information
Travel Food Services Limited is one of India’s leading providers of food and beverage services across travel and transit locations, including airports, railways, and highways. The company operates a diverse portfolio of restaurants, lounges, and food outlets under its flagship "K Hospitality" brand, leveraging over 16 years of expertise in the sector. Travel Food Services collaborates with renowned international and domestic brands, ensuring a premium experience for its customers.
Travel Food Services Limited IPO Strengths
Leading player in the Travel QSR and Lounge sectors in Indian airports
Travel Food Services was the leading player in the Travel QSR and Lounge sectors in airports in India based on their revenue in Fiscal 2024, according to the CRISIL Report. They operated the largest network of Travel QSRs in India, as of March 31, 2024, according to the CRISIL Report, with 313 of their 340 operational outlets being situated in airports, and the remaining in highway sites.
Strong expertise in operating and handling the distinct challenges of F&B in the operationally complex and highly secure airport environment.
Since the opening of their first Travel QSR outlet in 2009, they have cultivated a deep set of capabilities and processes that enable them to efficiently execute in and address the various operational challenges posed by the operationally complex and highly secure airport environment.
A diversified portfolio of partner F&B brands franchised from high-quality brand partners and in-house F&B brands.
The company had partnerships with 78 F&B brands licensed from international and regional Indian brand partners, in addition to 39 in-house brands, as of June 30, 2024. This includes international brands such as KFC, Pizza Hut, Wagamama, The Coffee Bean & Tea Leaf, Subway and Krispy Kreme, regional Indian brands such as Bikanervala and Third Wave Coffee, and in-house brands such as Caféccino, Curry Kitchen, Idli.com and Dilli Streat.
Risks of Travel Food Services Limited IPO
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High dependence on passenger traffic at airports, railway stations, and highways makes the business vulnerable to travel disruptions such as pandemics or natural disasters.
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Economic downturns or reductions in disposable income could significantly impact consumer spending on non-essential food services.
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Cost pressures from rising raw material prices and labour expenses could erode margins.
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Regulatory changes, including changes in tax laws or restrictions on certain types of food offerings, could affect revenue and compliance costs.
All Financial Information about Travel Food Services Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Travel Food Services Limited * | Jubilant FoodWorks Limited | Devyani International Limited | Sapphire Foods India Limited | Westlife Foodworld Limited | Restaurant Brands Asia Limited |
|---|---|---|---|---|---|---|
Revenue from operations (₹ crore) | 1396.322 | 5654.088 | 3556.3 | 2594.279 | 2391.81 | 2437.1 |
P/E | - | 114.69 | 432.56 | 213.46 | 182.92 | - |
RoNW (%) | 36.14 | 18.4 | 4.48 | 3.94 | 11.77 | -34.78 |
EPS (₹) Basic | 21.85^ | 6.06 | 0.39 | 8.3 | 4.44 | -4.4 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
Link Intime India Private Limited is the registrar of the Travel Food Services Limited IPO. The book-running lead managers are:
- Kotak Mahindra Capital Company Limited
- HSBC Capital and Securities (India) Private Limited
- ICICI Securities Limited
- Batlivala & Karani Securities India Private Limited
Business Model
Travel Food Services Limited operates a multi-channel model focused on delivering diverse food and beverage services across travel hubs in airports, and highways. The company combines proprietary brands, franchise partnerships, and premium lounges. In short, they provide services ranging from quick-service to luxury dining. Leveraging exclusive long-term contracts with travel authorities ensures a strong presence in high-footfall areas. By maintaining a capital-efficient approach, with centralised procurement and quality control, alongside partnerships with global F&B brands, the company delivers localised yet world-class dining experiences.
Company Growth Trajectory
Founded in 2007, Travel Food Services Limited has grown into a leading player with operations in over 20 travel hubs across India. The company has established a strong presence in premium F&B and lounge services by securing exclusive contracts at major airports and railways. Its innovative and tech-driven approach ensured quick recovery from challenges like the pandemic, while strategic diversification into highways expanded its reach. With India’s travel sector booming, Travel Food Services is poised for further growth, leveraging its strong brand, operational excellence, and customer-focused offerings.
Travel Food Services Limited Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 1462.292 | 1103.582 | 441.663 |
EBITDA (in ₹ crore) | 549.890 | 458.054 | 140.274 |
Profit Before Tax(in ₹ crore) | 387.365 | 327.140 | 16.569 |
Profit After Tax (in ₹ crore) | 298.017 | 251.299 | 5.030 |
EPS (in ₹) | 21.85 | 18.52 | 0.38 |
Travel Food Services Limited Cash Flow
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Cash Used in Operating Activities (in ₹ crore) | 368.760 | 322.147 | 77.438 |
Net Cash Used in Investing Activities (in ₹ crore) | (138.64) | (196.769) | (30.940) |
Net Cash Generated from Financing Activities (in ₹ crore) | (2,45.092) | (104.361) | (47.352) |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | 27.221 | 42.193 | 21.176 |
How to Check the Allotment Status of Travel Food Services LimitedIPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Travel Food Services Limited
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the website of Link Intime Private Ltd:
- Visit the website of Link Intime Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from the ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How to Apply for Travel Food Services Limited?
Here are the steps to apply for Travel Food Services Limited IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Travel Food Services Ltd IPO FAQs
What is the Travel Food Services Limited IPO
The Travel Food Services Limited IPO is an initial public offering consisting of an offer for the sale of equity shares aggregating up to ₹2000 crore.
Is Travel Food Services Limited IPO coming?
Yes, Travel Food Services Limited is expected to come up with its IPO soon.
Who is the CEO of Travel Food Services Limited?
Varun Kapur is the CEO of Travel Food Services Limited
From where can I read more about the IPO of Travel Food Services Limited?
You may read more about Travel Food Services and its IPO from the company’s draft red herring prospectus (DRHP) here.
