Travel Food Services (TFS) has filed IPO papers to the Securities and Exchange Board of India (SEBI) with an aim to raise INR 2,000 crore. Travel Food Services is a major player in the niche but fast-growing airport travel quick-service restaurant (Travel QSR) and lounge market in India. Read more about Travel Food Services IPO.
Think about all the bustling airport terminals where travellers crave a quick bite or a moment of luxury in a lounge. That’s where TFS thrives. As of 30 June 2024, the company operated 397 Travel QSR outlets:
- 335 locations across 14 Indian airports
- 30 outlets at two airports in Malaysia
- 32 setups at highway locations in India
Most of these outlets (340, to be exact) are directly run by TFS and its subsidiaries. The rest—57 outlets—are managed through partnerships, including joint ventures and associates.
But that’s not all. TFS is also making waves in premium airport lounges. By the end of June 2024, the company managed 31 lounges in India and Malaysia, catering to everyone from high-flying business travellers to loyalty program members. In July, it stepped into Hong Kong, opening a brand-new lounge—a sign of its ambitions beyond the Indian subcontinent.
Travel Food Services IPO: Surging in a Growing Market
TFS isn’t just growing—it’s leading. In FY 2024, the company claimed:
- A 24% revenue market share in India’s airport Travel QSR segment
- An impressive 45% market share in the airport lounge business
The numbers back up its success. Revenue for FY 2024 shot up to INR 1,396.32 crore, a big leap from INR 1,067.15 crore in FY 2023. Net profit also climbed, reaching INR 298.02 crore, compared to INR 251.29 crore the previous year.
Travel Food Services IPO Plan
The IPO is a big-ticket event, managed by financial heavyweights like Kotak Mahindra Capital, HSBC Securities, ICICI Securities, and Batlivala & Karani Securities. While the funds raised won’t directly go into TFS’s coffers as it is an offer for sale, the IPO is expected to add significant momentum to its growth trajectory.
Here’s why the TFS IPO is grabbing attention:
- Growing Passenger Traffic: Airports are busier than ever, and highways are seeing more travellers stopping for a quick break. TFS is positioned to tap into this trend.
- Strong Financials: The company’s steady revenue growth and solid market shares in Travel QSRs and lounges make it a strong contender in the competitive travel food space.
- Expansion Plans: The IPO comes as TFS is already exploring international markets and doubling down on its Indian operations.
This isn’t just a corporate story; it’s a snapshot of India’s evolving travel ecosystem. As airports turn into bustling mini-cities and highway traffic soars, companies like TFS are becoming an essential part of the journey.
The Travel Food Services IPO is more than just a financial event—it’s a story of growth, opportunity, and the changing face of travel in India. Whether you’re an investor eyeing its potential or a traveller who’s grabbed a sandwich at one of its outlets, this is one company to watch.
Over the past year, only two companies in the Tour and Travel Related Services sector launched their IPOs. These were TBO Tek, which delivered a listing return of 52.86%, and Le Travenues Technology, which achieved a listing return of 78.19%.
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