Travel Food Services IPO Gets Lukewarm Response, Subscribed 0.37x by Day 3

The Travel Food Services IPO has received a lukewarm response from investors, with a subscription of 0.37x by the start of Day 3. The company is offering shares in a price band of Rs. 1045 to Rs. 1100 per share, with a minimum lot size of 13 shares. The issue size stands at Rs. 2000 crore, comprising an entire offer for sale. Stay tuned for the latest updates on the Travel Food Services IPO subscription status as the offering progresses.

Travel Food Services IPO Subscription Status - Day 3

As of Day 3, Travel Food Services’ IPO was subscribed a total of 0.37 times. The Retail Investors category was subscribed 0.36 times, followed by the Non-Institutional Investors at 0.35 times, while the Qualified Institutional Buyers (QIB) category saw a subscription of 0.41 times.

Last updated: 11:00 AM, Wednesday, 09 Jul 2025

Travel Food Services IPO Subscription Status - Day 2

As of Day 2, Travel Food Services’s IPO was subscribed a total of 0.26 times. The Non-Institutional Investors category was subscribed 0.25 times, followed by the Retail Investors at 0.30 times, while the Qualified Institutional Buyers (QIB) category saw a subscription of 0.19 times.

Travel Food Services IPO Subscription Status - Day 1

The Travel Food Services IPO saw a modest start on Day 1, with an overall subscription of 0.11 times. The Retail Category subscribed at 0.15x, while Non-Institutional Investors (NIIs) showed limited interest with 0.07x. Qualified Institutional Buyers (QIBs) remained cautious, subscribing only 0.07x on the opening day.

Company Overview of Travel Food Services IPO 

Travel Food Services (TFS) is a prominent player in India’s fast-growing airport travel quick service restaurant (QSR) and lounge sectors. In Fiscal 2025, the company held an estimated 26% share of the Indian airport travel QSR market and approximately 45% share of the Indian airport lounge market, based on revenue, including that of associates and joint ventures. 

Their Travel QSR portfolio spans a diverse range of curated food and beverage (F&B) offerings, encompassing multiple cuisines, formats, and brands, both in-house and partner-based. As of March 31, 2025, TFS operated 442 Travel QSRs across India and Malaysia, with the majority located in airports and a smaller presence at highway sites. 

The company’s 442 Travel QSR outlets include 384 at Indian airports, 29 at Malaysian airports, and 29 along Indian highways. Of these, 270 were operated directly by the company and its subsidiaries, while 172 were run by associates and joint ventures. The QSR formats span fast food, cafes, bakeries, food courts, and bars, all adapted for high-efficiency service in travel settings. TFS partners with well-known regional and international F&B brands, such as KFC, Pizza Hut, Wagamama, Subway, Third Wave Coffee, The Irish House, and Curry Kitchen, while also operating several proprietary brands developed in-house.

The company also operates a well-established lounge business, offering premium spaces within airport terminals. These lounges are primarily accessible to first and business-class passengers, airline loyalty program members, select credit and debit cardholders, and members of other loyalty networks. As of March 31, 2025, TFS had 37 lounges across India, Malaysia, and Hong Kong. 

In terms of lounges, TFS managed 37 as of March 31, 2025. These included 28 in 10 Indian airports, eight in Malaysian airports, and one in Hong Kong. Of the total, 13 lounges were directly operated by the company and its subsidiaries, while 24 were run through associates and joint ventures. TFS has collaborated with numerous domestic and international airlines, card networks, financial institutions, and lounge access programs to offer seamless entry to their lounges.

TFS maintains a strong presence in 14 airports in India, three in Malaysia, and one in Hong Kong. Notably, 13 of the Indian airports in which TFS operates ranked among the top 15 by passenger traffic in Fiscal 2025. These include major hubs such as Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai. Collectively, these 14 Indian airports accounted for 74% of the country’s total air passenger traffic that fiscal year. 

Strengths and Risks of Travel Food Services IPO

Let’s dive into the strengths and weaknesses to assess if the Travel Food Services IPO is good or bad for investors.

Strengths:

• Market leadership:
  As of Fiscal 2025, the company held a leading position in India's airport-based Travel QSR and Lounge sectors, with a revenue-based market share of 26% and 45% respectively, operating the largest network of outlets across 14 major airports, accounting for 89% of passenger traffic in the top 20 airports.

• Operational expertise:
  With over 16 years of experience, the company has built strong capabilities to navigate the complex and regulated airport environment, managing 24/7 operations, stringent security, and multi-brand food services through central kitchens and specialized teams.

• Strong partnerships:
  The company has built long-standing relationships with major airport operators across India, securing strategic joint ventures and long-term concessions averaging over 8 years, with a presence in key airports like Delhi, Mumbai, and Bengaluru.

• Robust brand mix:
  The company operates a wide portfolio of 127 F&B brands with 90 partners and 37 in-house, enabling it to meet diverse passenger preferences and win major airport concessions by offering tailored food options across international, regional, and local cuisines.

• Customer-centric innovation:
  The company enhances traveler experiences through tech-enabled services, personalized menus, and regional offerings across its QSRs and Lounges, combining speed, personalization, convenience, and local flavor with elevated amenities like spa services and entertainment zones.

Risks:

• Revenue concentration risk:
  A significant portion of the company’s revenue, 85.94% in FY25, comes from its Travel QSRs and Lounges at the top five airports, making it vulnerable to traffic declines or concession non-renewals at these key locations.

• Impact on operator model shift:
  Changes in airport operators’ business models requiring majority stakes in concession-holding entities have led the company to form joint ventures like Semolina and GHL, reducing its direct control and profit share in key airports like Mumbai and Hyderabad.

• Dependence on card access:
  The Lounge business, which contributed nearly 45% of revenue over the past three fiscal years, relies heavily on customers accessing services through credit and debit cards. A decline or surge in such users could negatively affect footfall, service quality, and customer experience.

• Udaan Café impact:
  Government-run Udaan Yatri Cafés offering low-cost food options at airports may divert customers from the company’s Travel QSR outlets, potentially affecting sales, brand perception, and financial performance.

• Airport pricing risk:
  Higher menu prices at the company’s airport QSR outlets compared to non-airport locations may lead to customer dissatisfaction, reduced sales, and potential legal or regulatory challenges.

• Dependency on lounge partners:
  The company’s Lounge revenue is highly reliant on free access programs offered by airline loyalty schemes and card issuers; any reduction or withdrawal of these benefits could significantly impact the business performance.

• Global growth risks:
  Expanding the Lounge business internationally involves high upfront costs and management effort, and exposes the company to risks like political uncertainty, regulatory challenges, and operational complexities across regions, along with currency volatility risks. 

• Impact of seasonality:
  The sales and cash flows fluctuate due to seasonal travel patterns, with higher footfall during holidays and festive seasons, and potential slowdowns during periods like the monsoon.

Travel Food Services IPO Details

• IPO Date: July 7, 2025 to July 9, 2025

• Issue Price: Rs. 1045 to Rs. 1100 per share

• Lot Size: 13 shares

• Total Issue Size: 1,81,81,818 shares (aggregating up to Rs. 2,000.00 crore)

• Tentative Allotment Date: July 10, 2025

• Tentative Listing Date: July 14, 2025

How to Apply for Travel Food Services IPO

• Visit the Rupeezy app or Rupezy DOCK.

• Navigate to the IPO section on the Home Page

• Here, you can view all the IPOs with details such as market lot, minimum bid quantity, price range, and analysis.

• You can read the Red Herring Prospectus for the issue details.

• Click on Apply.

• Enter your UPI ID for payment & place the bid.

• While placing the bid, enter the cutoff price or desired price in the range specified. Select quantity as per lot size. 

• Submit to complete the order.