Have you ever paused mid-airport rush to grab a bite at idli.com, Subway, or sipped chai in an exclusive lounge? Well, chances are that Travel Food Services (TFS) — an IPO-bound business backed by airport flair and steady profits — is behind it. This isn’t your everyday pizza delivery play; it’s hospitality at the hustle, and it might just be landing in your portfolio.
%20IPO.jpg)
What’s the Buzz About TFS?
- Niche Dominance
TFS operates ~440 QSR spots and 35+ lounges across India, Malaysia, and Hong Kong — that’s a powerful footprint at travel hubs. In India, it owns roughly 26% of the airport QSR market, and a whopping 45% in lounge spaces
- Brands That Click
It’s a fusion of global franchises (KFC, Pizza Hut, Subway, Krispy Kreme) and homegrown brands (idli.com, Dilli Street, Curry Kitchen). That sweet mix gives it style and substance.
- Rock-Solid Contracts
The concessions are built to last — averaging over 8 years with a high retention rate (~94%) . No seasonal surprise renewals here.
The IPO Scoop
- IPO Structure
Entirely an Offer-for-Sale (OFS) worth ₹2,000 Cr — meaning promoters are cashing in, not raising capital
- Pricing & Lots
Price band: ₹1,045–1,100 per share, with 13-share lots. At upper band, minimum ticket = ~₹14,300
- Anchor Backing
Strong innings before opening: ₹600 Cr from big names — ICICI Prudential, Axis MF, Kotak MF, Abu Dhabi Investment Authority, Fidelity, GPFG, and more. That says someone believes in this ride.
Subscriptions Have Been Tepid
Oddly, even with global franchises and cozy lounges, the IPO hasn’t lit a fire:
- Day 1: ~10–14% overall subscription; retail ~14%, QIB ~7%
- Day 2: ~16%; retail ~22%, QIB ~7%, NII ~14%
- Day 3 (July 9 mid-day): ~41% overall w/ retail ~37%, NII ~44%, QIB ~44% .
That slow start is likely because it’s all OFS, and there's no new money fueling expansion, which often dampens subscriber enthusiasm.
Grey Market Premium (GMP): The Whispers on the Street
- Grey market is murky, but real enough for sentiment checks:
- Most estimates show a modest GMP of ₹8–₹16 — implying a 1–1.5% listing pop.
One report even had a hot ₹80 GMP — likely exaggerated. Let’s be cautious: grey market doesn’t dictate listing day, but low premium signals conservative expectations.
Financials: Solid, Steady, Sensible
Revenue:
FY23 ₹1,103 Cr → FY24 ₹1,462 Cr → FY25 ₹1,763 Cr
EBITDA / PAT:
FY25 Adj. EBITDA ₹676–639 Cr; PAT ~₹380–363 Cr .
Cash & Debt:
Zero net debt. ₹515 Cr of operating cash flow in FY25 — that kind of burn-the-cash-business?
Valuation Multiples:
- EV/EBITDA FY25 ~25.5x; FY26E ~22x
- Peer comparisons: Jubilant ~30x, Devyani ~25x, Westlife ~37x
Multiple ratios: P/E ~40–49x (vs peers at 60–100x). So despite a shell, it's cheaper than mall-food ops.
Sector Tailwinds & Strategic Catalysts
- Aviation Boom: CRISIL pegs airport QSR growth at 17–19% CAGR till 2034, and lounges at 22–24%
- New Airport Wins: TFS is already securing spaces at upcoming Noida and Navi Mumbai airports — smart bets for next-gen growth
- Global JV Punch: Their partnership with UK’s SSP Group gives them an international runway — plans to grow lounges across SE Asia and Middle East
Risks You Can’t Ignore
- Airport Concentration: ~86% of revenue from the top 5 airports; Mumbai and Delhi alone ~32%. A slowdown there can hit hard
- Card Partner Volatility: Lounge usage might dip if credit-card bonanzas stop — Dreamfolks was burned this way
- OFS Pressure: Full OFS and promoter dilution might weigh on sentiment — fresh capital is zero, so investor cold feet are understandable.
- Litigation: ₹105 Cr worth of suits are hanging — not deal-breakers, but worth noting .
Bottom Line: Should You Apply?
Yes — but with eyes wide open.
For listing gains? Expect a muted single-digit bounce — not the 30–50% pops we've seen with other IPO frogs. For longer-term grad school? This is where the story gets interesting: You're buying into an underpenetrated airport F&B play, with long-duration contracts, zero debt, global partners, and strong cash flow.Valuation is less bubbly than mall-based QSR brands. If you're okay with short-term flat returns and believe in the passenger wave ahead, this is a subtle entry into travel’s back office — not the glamfront of fast food, but where the real gates open.
My Take: Apply Light, Think Long
Listing Gains? Don’t expect fireworks — maybe 5–10% if the gray market holds. Long Game? If India’s airport travel and lounge culture keeps climbing, TFS is the backstage ticket. I’m making a small commitment for the queue — optimistic that this quietly efficient airport operator will pay off over time.
