Travel Food Services IPO – the leading player in India’s airport-focused quick-service restaurant and premium lounge market—is one step closer to going public. SEBI (Securities and Exchange Board of India) gave its observation letter on 22 April 2025. That’s the regulatory green light the company needed to move forward with its IPO plans.
TFS had initially filed its Draft Red Herring Prospectus (DRHP) with SEBI on 16 December 2024. This is a pure offer-for-sale, so the money raised will go to the existing shareholders—not the company itself. The IPO is expected to raise around INR 2,000 crore. That’s a significant amount of money.
Travel Food Services IPO – Business Overview
Travel Food Services was founded on the idea of revolutionising travel dining in India. Today, it’s a leader in airport hospitality, with a presence in both India and internationally. It offers a range of services—quick-service meals, premium lounge experiences and innovative dining formats tailored to the modern traveller.
Travel Food Services has emerged as a dominant force in the niche but rapidly expanding travel food and lounge services sector. As of 30 June 2024, the company operated a total of 397 Travel QSR outlets. These include:
- 335 outlets across 14 major Indian airports
- 30 outlets at two airports in Malaysia
- 32 highway locations across India
Of these, 340 outlets are directly operated by TFS and its subsidiaries, while the remaining 57 are managed through partnerships, including joint ventures and associate entities.
In addition to its food services, TFS is also a major player in the premium airport lounge segment. By mid-2024, Travel Food Services was operating 31 lounges in India and Malaysia. It made its first move into Hong Kong in July 2024, opening its first lounge outside South Asia. That was a big move—and a sign of its global ambitions.
Financial Highlights and Market Dominance
The financial year 2024 proved to be a strong one for TFS. Revenue for the company rose to INR 1,396.32 crore by the end of 2023—up from INR 1,067.15 crore the year before. Net profit also climbed to INR 298.02 crore, from INR 251.29 crore in the previous year.
TFS claimed a 24% revenue market share in India’s airport Travel QSR segment and an even more impressive 45% market share in the airport lounge services space—underscoring its leadership in both categories.
Backed by Major Financial Institutions
The IPO is being managed by a consortium of top financial institutions including Kotak Mahindra Capital Company Limited, HSBC Securities, ICICI Securities, and Batlivala & Karani Securities. The lead role was taken by Kotak Mahindra Capital, which also coordinated the IPO filing process before SEBI’s observation letter was issued.
Market Timing and Sectoral Trends
The timing of the IPO coincides with a period of rapid growth in India’s air and road travel infrastructure. Increased passenger traffic at airports and rising demand for convenient highway pit stops have created fertile ground for companies like TFS.
Only two other firms in the tour and travel-related services sector launched IPOs in the past year—TBO Tek and Le Travenues Technology. Both companies recorded strong listing performances, with returns of 52.86% and 78.19% respectively, indicating strong investor appetite for this segment.
What’s Next?
With SEBI approval in hand, TFS will soon announce the IPO launch date. Travel Food Services won’t directly benefit from the IPO, but listing will boost its brand visibility, provide liquidity for existing shareholders and give it more flexibility for future fundraising and expansion.
The Travel Food Services IPO is not just a milestone for the company but also a reflection of India’s evolving travel landscape. As airports morph into bustling hubs of commerce and comfort, and highways become the arteries of a mobile population, TFS stands at the crossroads of convenience, taste, and premium service. For more information related to IPO GMP, Live Subscription, stay tuned to IPO Central.