Travel Food Services Share Price Debuts with 2% Premium: A Subdued Listing Amid High Expectations

Market Performance

Travel Food Services' share price opened with a modest gain on July 14, 2025. Despite strong investor interest during the IPO, the listing day performance remained in line with grey market premium (GMP) expectations.

• BSE Listing Price: ₹1,126.20
• Issue Price: ₹1,100
• Premium on BSE: 2.3%
• NSE Listing Price: ₹1,125
• Premium on NSE: ₹25 or 2.27%

This performance mirrored the sentiment observed in the unlisted market, where the stock had recently shown signs of weakening traction.

Main News

The ₹2,000 Crore public issue of Travel Food Services saw decent demand across investor categories. However, the listing stayed within the estimated range, lacking any explosive upside.

IPO Details:

• IPO Size: ₹2,000 Crore
• Issue Type: Entirely Offer for Sale (OFS)
• Price Band: ₹1,045–₹1,100
• Subscription Window: July 7 to July 9, 2025

Subscription Status:

• Qualified Institutional Buyers (QIBs): 7.70x
• Non-Institutional Investors (NIIs): 1.58x
• Retail Investors: 0.69x
• Overall Subscription: 2.88x

The IPO was entirely an OFS by the Kapur Family Trust, meaning the company did not receive any fresh capital, and all proceeds were allocated to the selling shareholder.

Company Details

Travel Food Services (TFS) is a dominant player in the Indian airport food and lounge services market, serving both domestic and international travelers. The company operates travel-focused quick-service restaurants (QSRs) and airport lounges across India, Malaysia, and Hong Kong.

Key Operational Highlights (as of March 2025):

• Travel QSR Outlets: 442 (India & Malaysia)
• Airport Lounges: 37 (India, Malaysia & Hong Kong)

Expansion Overview:

• FY25 Outlet Additions: 80
• FY24 Outlet Additions: 92
• FY23 Outlet Additions: 96

Market Share (FY25):

• Indian Airport Travel QSR Segment: 26%
• Indian Airport Lounge Segment: 45%

The company's primary clients include airlines, card networks, and banks. Revenue is generated through per-lounge-use payments by access providers. Both QSR and lounge businesses reportedly have comparable margin profiles.

Financial Performance

Revenue

• FY25 Revenue: ₹1,687.7 Crore
• YoY Growth: 21%

Net Profits

• FY25 Profit: ₹379.7 Crore
• YoY Growth: 27.4%

This financial growth supports TFS's expanding footprint across key airport hubs in India and Southeast Asia.

Summary of the Article

Travel Food Services' share price opened at a slight premium of over 2% on both the NSE and BSE, aligning with earlier grey market predictions. Despite a well-subscribed IPO backed by QIBs, the listing lacked a significant upside momentum.

The company stands out as a market leader in India's airport F&B and lounge space, with an impressive footprint and healthy financial growth. With 442 QSRs and 37 lounges under its wing, TFS continues to benefit from the increasing volume of airport travelers across its operational regions.

Although the IPO brought in no new capital (being a complete OFS), Travel Food Services has demonstrated strong business fundamentals and expansion consistency, which could help stabilize its share price in the coming quarters.