You may have experienced the services of Travel Food Services Limited either by taking a quick bite in the airport or taking time in one of the premium lounges before your flight. The first of its kind, this company is now giving an opportunity to salaried job holders to invest in its company with a massive IPO opening of 2,000 crores in the market on July 7, 2025.
Overview—Travelling Food Services
Having established an empire in the Indian airport food and beverage industry in the last 18 years, Travel Food Services Limited has succinctly passed unnoticed. Bombay Pure Foods Private Limited of 2007 has turned into one of the most successful airport hospitality firms in India, which gets millions of travelers every year.
The company is in two broad fields of operation that do not conflict at all. Their Travel Quick Service Restaurants are both local Indian and international fast food, whereas the airport lounges are dedicated to business people and frequent flyers, providing them with the best experience. It is a franchise that uses the airline as a captive market to the passengers who have time and are hungry—on top of requiring a convenient waiting space.
Today, Travel Food Services operates a very sparkling chain of 397 quick eateries in India and Malaysia with 117 varied food and drink brands under its roof. They have a presence in 14 key Indian airports comprising the busiest hubs, such as Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai, in addition to three airports in Malaysia.
IPO structure and minimum subscription requirements
The IPO of the Travel Food Services opens on July 7, 2025, and will close down on July 9, 2025. The price band that the company has announced is 1,045 to 1,100 rupees per share, in which each of these shares has the face value of only 1 rupee.
The interesting aspect of this IPO is that it is a pure Offer for Sale by the Kapur Family Trust, the promoter of this company. It implies that the IPO proceeds will not add any new capital to the company, but the selling aspect by the current promoters is in some sort of monetizing the existing promoter share. An investor usually finds that the arrangement can point to the belief held by the promoters that the company has a bright future combined with the idea that the promoters will get at least partial liquidity.
You need to subscribe to a minimum of 13 shares at the higher price band, which means the cost of acquisition has to be at least 13585. It consists of the usual distribution plan where retail investors would have 35 %, qualified institutional buyers 50 % and non-institutional investors 15 %.
Financial performance of Travel Food Services
Travel Food Services can be described as a company that has shown significant financial performance in light of the difficulty encountered by the hospitality industry over the past few years. The income of the company improved by 20.9 percent in the last financial year i.e. FY2025 compared to FY2023, from 1,067 crores to 1,687.7 crores.
More impressive is the direction of profitability of the company. This increased their profit after tax by 27.4 percent to reach 379.7 crore rupees in FY2025 compared to the previous year, which stood at 215.78 crore rupees. Such a regular increase in terms of revenues and profitability shows that the company is highly efficient in its operations and its services are in demand in the market.
This financial performance is even more impressive when taking into account the operational delicacies of airport food services, which pose distinct challenges due to security procedures used; the limited space available; and the fluctuating passenger traffic, which is made up of frequent flyers, one-time flyers etc. but which the company has been able to maneuver its way through.
Market Sentiment and Grey Market Premium
The Travel Food Services IPO has also received quite a lot of interest from the investment community, as this is reflected in its grey market premium. The share is currently trading at a premium of 94 in the grey market, indicating that shareholders think that the share will be listed in the market at approximately 1,194 which is 8.36 percent higher than the upper band of the price.
Although grey market highs do not imply the future front-offering performance, the quality tends to show the investor expectations and interest in the stock. The premium remained strongly positive throughout its IPO and this would imply that the participants of the market are well disposed to this IPO; however, it should be borne in mind by the investors that the listing prices might be very different than what the grey market is predicting.
Relationship of Travelling food services with other firms
The success of the company is attributable to a number of competitive advantages, which new firms can hardly imitate. Their long-standing relationships with airport operators have brought about agreements of multi-year concession, providing visibility of revenue and stability of operations. These long-term relationships that have been established over almost twenty years pose a major entry barrier to all competitors.
Travel Food Services also knows how to conduct business in the complicated airport surroundings. Contrary to that, the structure of the traditional restaurants, the airport food services have to deal with tight security regulations, the lack of space, unpredictable customer traffic, and the necessity to please the customers, who are usually in a hurry.
The company has been able to deal with such operational challenges, hence making them a favorite partner to airport operators. They have a diversified portfolio of 127 partner and in-house brands that enable them to meet diverse customer interests and decrease the concentration in one type of food. This expansion is both in terms of cuisines, pricing, and format of service, the combination of quick grab-and-go and sit-down places to eat.
Growth ratio
The present Indian aviation industry is going through a period of the highest development ever, and Travel Food Services can enjoy the best of such growth. Industry reports have estimated that within the coming decade the domestic air passenger traffic growth rate should be 8-9 percent per annum, whereas the international traffic growth rate should be an estimated 6-8 percent per annum.
This development has a direct relationship to a rise in traffic at airports, which increases the company customer base with respect to its restaurants and lounges. The Travel QSR industry in Indian airports is expected to expand at quite a quick rate of 17-19% each year, whereas the lounge business is being projected to grow at an even higher rate of 22-24% every year.
The growth in passengers is not the only trend that is motivating this growth. The rise in waiting time at airports as a result of the lengthening of the check-in process and security measures allows customers more time to spend on food and drinks. The emergence of low-cost carriers has opened up air travel to the mass market and opened up new classes of customers who will continue to use food services. Moreover, the growth of the credit card and loyalty programs has also opened up access to the high-end lounge services.
Know risk factor of this IPO
As much as the expansion opportunities are promising, investors must know that there is an underlying risk in the business model adopted by Travel Food Services. The high level of airport use by the company translates into the fact that 95.55 percent of their income is through airport-based stores. Such concentration makes it susceptible to forces that can influence air travel, like economic downturns, health crisis or alterations in travel trends.
The revenue of the company is also geographically focused, as they have five main airports that provide 85.94 percent of the revenue collected. Any major outbreak of an incident in these big airports would affect the financial results of the company materially.
The other issue is how well the company gets along with its brand partners that deliver 54.37 percent of its Travel QSR revenues. Although the partnerships are flexible and will not require much capital, on the negative side, they will lead to dependency on the partners in ensuring that there is a good relationship.
The company also faces the ongoing challenge of renewing concession agreements with airport operators. While their track record is strong, changes in terms or inability to renew agreements could significantly impact their operations and profitability.
How to apply for the Travel food services IPO?
The process of applying for the Travel Food Services IPO is no different than what is usually used in India when it comes to public offerings. Aurora will give investors a chance of three days to complete their applications before the subscription period ends on July 9, 2025.
Retail investors are compelled to use the UPI payment mechanism, which has simplified the process of its application tremendously. You will be able to apply on the platform of your broker or on the platform of partners in the banking system that provide IPO services. The allotment will take place on July 10 whereas the refunds and share credits will occur on July 11. On July 14, 2025, the firm will be listed under both BSE and NSE.
Final Thought
The Travel Food Services IPO provides a lone opening to the investors with an entry point into India concealed, burgeoning hospitality industry, connected with the aviation industry. Having an established business model, brand associations and diverse service offerings in the key airports, the company is well-placed to tap the surging traffic within Indian and Southeast Asian aviation sectors. It has a historically good financial performance even in a complex operating environment, speaking of good execution capabilities.
The airport dependence, however, could be a risk or it might affect other ways, so we cannot ignore the fact. This IPO is optimally suited to any investor with a medium or higher risk profile who is confident in the long-term potential in the aviation and travel environment. As usual, do your due diligence—see the volatility of the market, the nature of the IPO exit of the promoters, and know your own financial objectives first before subscribing.
And in case you wish to board the rebirth of travel in India, yet you need the security of full in-place operations, Travel Food Services is your boarding pass to growth.
FAQs
When does the Travel Food Services IPO open and close?
The IPO of the Travel Food Services will be open on July 7 and close on July 9, 2025.
What is the price band for the Travel Food Services IPO?
The price band of the IPO will be at 1,045 to 1,100 rupees per share of equity.
What is the minimum investment required for the Travel Food Services IPO?
At the upper price band at 1,100 the minimum investment is 13,585 on 13 shares.
When will the Travel Food Services IPO be listed?
The Travel Food Services has been allotted to BSE and NSE, being available beginning July 14, 2025, after its allotment was completed on July 10.
What is the Travel Food Services IPO GMP today?
The listing price of the proposed IPO of Travel Food Services may be approximately 1,194 based on the current GMP of the stock, which is 94.
Can I apply for the Travel Food Services IPO through UPI?
Yes, it is mandatory that retail investors make payment through UPI on submitting an application to the Travel Food Services IPO.
