Travel Food Services IPO Opens for Subscription, GMP Rises To 3%

Continuing the momentum for public listings on D-Street, the initial public offering of Travel Food Services opened for bidding on July 7. Investor attention towards the public offer was lukewarm in the initial hours of bidding, with the IPO subscribed just 5% by noon.

Retail investors led the subscription numbers as the portion reserved for the category was subscribed 8%. The non-institutional investor segment received bids for 3% of the entire portion reserved for the category while qualified institutional buyers were yet to warm up to bidding for the issue.

Travel Food Services has set the price band for its IPO at ₹1,045-1,100 per equity share. The ₹2,000 crore public issue is a complete offer for sale (OFS), with no fresh capital being raised.

Ahead of its debut, the company’s shares are seen commanding a premium of around 3% over the upper end of its price band in the grey market, suggesting muted listing gains.

Before the IPO went live for subscription, the company also raised ₹598.80 crore from anchor investors. Some marquee names that participated in the anchor book included Fidelity Investment Trust, Government Pension Fund Global, WhiteOak Capital, Abhu Dhabi Investment Authority and ICICI Prudential.

Brokerages also hold a positive view on Travel Food Services’ (TFS) IPO. Ventura pointed to TFS’s strong financial performance as a key driver of its bullish view. The company’s revenue jumped 20.9% year-on-year to ₹1,762.71 crore in FY25, while Ebitda surged 34% to ₹676.35 crore. Net profit also saw a growth of 27.3% to ₹379.66 crore.

The firm operates on a zero-debt model and is actively expanding into global markets including Malaysia, Hong Kong, Asia-Pacific, and the Middle East, backed by its relationship with UK-based SSP Group. Ventura also noted its growth into expressway quick service restaurants as a promising opportunity.

BP Equities echoed a similar sentiment, stating that the issue is valued at a price-to-earnings (P/E) ratio of 39.9x on FY25 earnings at the upper end of the price band, which is lower than many listed QSR peers. This relative valuation discount adds to the appeal, the firm noted, making a strong case for subscribing to the offer.