Travel Food Services IPO Listing on July 14; GMP and Subscription Indicate Modest Debut

QIB-led demand drives IPO subscription to 2.88x; GMP suggests likely premium listing

Travel Food Services Ltd, a key player in India’s airport-based food and beverage retailing segment, is all set to debut on the stock exchanges on Monday, July 14, 2025, following the conclusion of allotment formalities. Investors who were allotted shares in the IPO will receive them in their demat accounts by July 11, while refunds for unsuccessful applicants will also be processed the same day. The stock will be listed on both NSE and BSE.

IPO Subscription Status: QIBs Dominate, Retail Lags

The IPO Subscription Status, which opened for bidding from July 7 to July 9, garnered a moderate subscription overall, with strong participation from Qualified Institutional Buyers (QIBs) who subscribed 7.70 times their allocated quota. Non-Institutional Investors (NIIs) subscribed 1.58 times, while Retail Individual Investors (RIIs) contributed relatively less, subscribing to just 69% of their reserved portion.

By the end of the bidding period, the overall subscription stood at 2.88 times, reflecting institutional appetite but slightly subdued retail enthusiasm.

• QIB Quota: Reserved up to 50% of the issue – subscribed 7.70x

• NII Quota: Minimum 15% reservation – subscribed 1.58x

• Retail Quota: Minimum 35% reservation – subscribed 0.69x

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Grey Market Premium Trends: Listing Gains May Be Limited

According to grey market activity, the Travel Food Services IPO GMP today stands at ₹40, indicating investors were willing to pay ₹1,140 for a share compared to the upper price band of ₹1,100. This hints at a 3.64% expected listing gain, though market experts note that the GMP has been on a declining trend in recent sessions.

• Highest GMP recorded: ₹92

• Lowest GMP recorded: ₹0

• Current GMP: ₹40

• Estimated Listing Price: ₹1,140

• Expected Gain Over IPO Price: +3.64%

Market analysts attribute the cooling GMP to broader market volatility and the fact that the IPO is entirely an Offer for Sale (OFS), which means no fresh capital infusion into the company.

Company Overview: Dominant Airport QSR Operator

Founded in 2009, Travel Food Services Ltd has emerged as one of India’s largest airport food and beverage retail operators. As of June 30, 2024, it operated 397 Travel QSR outlets across Indian and Malaysian airports. Its brand portfolio spans 117 partner and proprietary food and beverage brands, giving it a dominant footprint in the travel hospitality segment.

The company is backed by global F&B retail player SSP Group plc and the Kapur Family Trust. Prominent entities like SSP Group Holdings Ltd, SSP Financing Ltd, and SSP Asia Pacific Holdings Ltd hold stakes, alongside individual promoters Varun Kapur and Karan Kapur.

IPO Structure and Pricing

• IPO Price Band: ₹1,045 – ₹1,100 per equity share (Face value: ₹1)

• IPO Lot Size: 13 shares and multiples thereof

• Total Issue Size: ₹2,000 crore (100% Offer for Sale by Kapur Family Trust)

• Fresh Issue: Nil

• Use of Proceeds: Selling shareholder to receive entire proceeds; company will not get any fresh capital

Book Running Lead Managers (BRLMs)

The IPO was managed by a four-member syndicate of investment banks:

• Kotak Mahindra Capital Company

• HSBC Securities and Capital Markets (India) Pvt Ltd

• ICICI Securities

• Batlivala & Karani Securities India Pvt Ltd

Their involvement underscores the strategic importance and global positioning of Travel Food Services in India’s booming airport infrastructure and consumer mobility sector.