Travel Food Services IPO Subscribed 1.34x; Flat GMP Ahead of July 14 Listing

Travel Food Services IPO saw full subscription by July 9, driven by strong QIB demand. Grey market premium stays flat as investors await allotment on July 10 and listing on NSE, BSE by July 14.

IPO Fully Subscribed as QIB Demand Surges, Retail Response Muted

Travel Food Services Ltd., a leading operator of airport-based quick-service restaurants (QSRs) and lounges, successfully closed its initial public offer (IPO) on July 9, with an overall subscription of 1.34 times. The bidding data revealed strong interest from Qualified Institutional Buyers (QIBs) while Retail and HNI segments remained cautious.

According to the NSE bidding data as of 1:15 p.m., the IPO garnered bids for 1.79 crore equity shares against 1.34 crore shares on offer. The QIB category witnessed robust demand at 3.53x subscription, while Non-Institutional Investors (NIIs) subscribed at 59% and Retail Individual Investors (RIIs) at just 40%.

Check This Travel Food Services IPO

• IPO Subscription Status (Final Day):
  • QIBs: 3.53x
  • NIIs: 0.59x
  • RIIs: 0.40x
  • Total: 1.34x

• Anchor Investment Raised: ₹600 crore on July 5

• Price Band: ₹1,045–₹1,100 per share

• IPO Size: ₹~1,200 crore (approx.)

Highlight: IPO subscribed 1.34x; driven by strong institutional demand, flat retail/HNI participation
Key Dates:
• Allotment: July 10
• Listing on NSE/BSE: July 14

Also Read : TCS Q1 Preview: Revenue Dip, GenAI Push & Margin Strain in Focus Ahead of July 10

Flat GMP in Grey Market Hints at Muted Listing Expectations

Despite full subscription, the grey market premium (GMP) for Travel Food Services IPO is flat to negligible, indicating no immediate listing pop is expected based on unregulated market trends. Market observers say lack of high-street buzz and modest retail/HNI interest has kept sentiment lukewarm.

Web portals tracking GMP activity show that the shares are commanding zero or marginal premium, with fluctuations depending on broader market mood. This suggests listing may be at or near issue price, unless institutional demand triggers post-listing momentum.

Check This Grey Market Premium (GMP)

• GMP Today: ₹0 to ₹10 (fluctuating)

• Estimated Listing Price Range: ₹1,050–₹1,120

• Highlight: Grey market premium remains flat; cautious optimism for stable listing
• Investor Strategy: Watch for QIB-driven listing day volume before taking fresh positions

Airport-Focused QSR & Lounge Operator with Global Backing

Incorporated in 2009, Travel Food Services Ltd. operates QSR outlets, cafés, and premium airport lounges across major Indian and Malaysian airports. It has built a portfolio of domestic and international F&B brands and operates under both own brands and global franchises.

The company is promoted by SSP Group plc, a UK-based international food & beverage operator with airport-focused operations in over 30 countries. Key promoters include SSP Group Holdings Ltd, SSP Asia Pacific Holdings Ltd, and the Kapur Family Trust along with Varun Kapur and Karan Kapur.

• Business Segments:
  • Travel QSRs (e.g., KFC, Domino’s, Café Coffee Day, Swiggy Access tie-ups)
  • Premium Lounges (domestic & international terminals)
  • In-terminal retail F&B services

• Presence: India and Malaysia (20+ airports)

• Promoters: SSP Group plc, Kapur Family Trust

• Highlight: Travel QSR & lounge business with global F&B promoter backing; strong positioning in post-COVID travel boom
• Peers to Watch: Devyani International (DIL), Jubilant FoodWorks, Barbeque Nation

IPO Objective & Financial Snapshot

The IPO proceeds will be used primarily to repay debt, fund capex, and expand operational footprint across new terminals and high-traffic airports. The company has also outlined investments in digital upgrades, AI-led supply chain optimization, and brand refresh initiatives post-COVID.

• Net Proceeds Utilisation:
  • ₹300–350 crore: Debt repayment
  • ₹250+ crore: Expansion & infrastructure
  • Remainder: General corporate purposes

Financial metrics as per RHP (FY24):

Market Outlook & Key Stocks to Watch

The IPO closes at a time when the travel and hospitality sector is seeing a cyclical upturn amid rising passenger footfalls and increasing domestic air connectivity. However, weak HNI and retail participation may weigh on short-term sentiment.

Traders should watch stocks in the F&B QSR and airport retail space, including Devyani International, Jubilant FoodWorks, and Adani Airports, for potential correlation.

• QSR Sector Outlook: Steady demand, rising rental pressures

• Post-listing Watchlist:
  • Travel Food Services (on listing day)
  • Devyani International – Similar airport-linked QSR model
  • Jubilant FoodWorks – Urban dining sentiment play
  • IRCTC – Travel consumption play

• Highlight: Traders may look for listing day volumes, F&O action, and peer movement post-allotment
• Global Cue: Travel sector sentiment in US & Europe could influence outlook for QSR stocks in India