Mumbai-based Travel Food Services, a leading player in the fast-growing Indian airport travel quick service restaurant (“Travel QSR”) and lounge (“Lounge”) sectors based on revenue in Fiscal 2024, according to the CRISIL Report, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 2,000 crore through an initial public offering (IPO).
The Company filed its IPO papers with Sebi on December 10, 2024.
The IPO with a face value of Re 1 is entirely an offer for sale of up to Rs 2,000 crore by Kapur Family Trust. The offer includes reservations for subscriptions by eligible employees.
Travel Food Services launched its first travel quick-service restaurant (QSR) outlet in 2009. Its travel QSR business comprises a range of curated food and beverage (“F&B”) concepts across cuisines, brands, and formats adapted to cater to customers’ demands for speed and convenience within travel environments.
It utilises its F&B brand portfolio, comprising 117 partner and in-house brands, in the operation of 397 Travel QSRs across India and Malaysia, as of June 30, 2024. Its Travel QSRs are predominantly situated within airports, with select outlets in highway sites. Its lounge business comprises designated areas within airport terminals, accessible primarily by first and business-class passengers, members of airline loyalty programs, select credit card and debit card holders, and members of other loyalty programs.
It had 31 Lounges across India and Malaysia, as of June 30, 2024. In addition, a new Lounge was opened in Hong Kong in July 2024. Through its Travel QSR and Lounge businesses, it is present in 14 airports in India and three airports in Malaysia, as of June 30, 2024. Of the 14 airports in India in which it operates, 13 were among the 15 largest airports in the country by passenger traffic in Fiscal 2024, based on air passenger traffic, according to the CRISIL report.
These 14 airports served 74% of the total domestic and international air traffic footfall in India in Fiscal 2024, according to the CRISIL Report. Such airports include Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai, according to the CRISIL Report. It operates the largest network of Travel QSR outlets and airport Travel QSR outlets in India as of March 31, 2024, with 313 of our 340 operational outlets being situated in airports, and the remaining in highway sites.
Revenue from operations increased by 30.85% to Rs 1,396.32 crore in fiscal 2024 from Rs 1,067.15 crore in fiscal 2023, attributable to an increase in its LFL Sales and Net Contract. Profit after tax increased by 18.59% to Rs 298.02 crore in fiscal 2024 from Rs 251.30 crore in fiscal 2023.
For the three months ended June 30, 2024, revenue from operations stood at Rs 409.86 crore, and profit after tax stood at Rs 59.55 crore.
Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, and Batlivala & Karani Securities India Private Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.