Travel Food Services shares tumble 5% from peak after listing on premium
ADVERTISEMENT From its issue price, the stock has fallen by 2.12%.
Travel Food Services, a prominent operator of airport-based quick service restaurants (QSRs) and lounges, made its stock market debut on Monday with a 2.38% premium on the BSE. The shares opened at Rs 1,126.20 on the BSE and Rs 1,125 on the NSE, against the issue price of Rs 1,100.
The IPO saw a moderate response from investors, closing with an overall subscription of 3.03 times. The Qualified Institutional Buyer (QIB) category recorded the highest demand at 8.10 times, while retail investor participation remained subdued at just 0.73 times. The Non-Institutional Investor (NII) segment was subscribed 1.67 times, indicating cautious interest from high-net-worth investors.
Travel Food Services, backed by UK-based SSP Group, operates 397 quick service restaurant outlets and lounges across 14 airports in India and three airports in Malaysia, covering major hubs such as Mumbai, Delhi, Bengaluru, and Chennai.
ADVERTISEMENT The company offers a diverse food and beverage portfolio comprising 117 partner and in-house brands, serving the rising demand for food and travel services at high-traffic transit locations.
Financially, the company reported stable earnings growth in FY25, supported by robust EBITDA margins of 40% and a return on equity (ROE) of 35.47%. However, concerns have been raised over the IPO's valuation, priced at a P/E multiple of 48.6 times, particularly since the offer is entirely secondary with no fresh capital being raised.
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Also read: Jane Street complies with Sebi, deposits Rs 4,843 crore in escrow account
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