Latest news with #KHospitality
Mint
2 hours ago
- Business
- Mint
Travel Food Services IPO opens on July 7: Check out 10 key things to know from RHP before investing
Travel Food Services IPO date of subscription is scheduled for Monday, July 7, and will close on Wednesday, July 9. Travel Food Services IPO price band has been fixed in the range of ₹ 1,045 to ₹ 1,100 per equity share of the face value of Re 1. The allocation to anchor investors for the Travel Food Services IPO is scheduled to take place on Friday, July 4. Travel Food Services IPO has allocated 50% of the shares in the public offering for qualified institutional buyers (QIB), at least 15% for non-institutional investors (NII), and no less than 35% of the offering is set aside for retail investors. The portion reserved for employees has been capped at ₹ 40 million. The upcoming IPO consists entirely of an offer-for-sale (OFS) of shares worth ₹ 2,000 crore from the Kapur Family Trust, the promoter of the offering. This opportunity includes reserved options for eligible employees to participate in the subscription. The Kapur Family Trust operates within the K Hospitality brand, which oversees and invests in various businesses in the hospitality and food service industries, including Travel Food Services. Given that this IPO is exclusively an OFS, the company will not receive any funds from this offering, and all proceeds will go to the selling shareholder. The merchant bankers handling the Travel Food Services IPO are Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India), ICICI Securities, and Batlivala & Karani Securities India. Travel Food Services IPO GMP is +92. This indicates Travel Food Services share price were trading at a premium of ₹ 92 in the grey market, according to Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Travel Food Services share price was indicated at ₹ 1,192 apiece, which is 8.36% higher than the IPO price of ₹ 1,100. Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue. The promoters of the company include SSP Group plc, SSP Group Holdings Limited, SSP Financing Limited, SSP Asia Pacific Holdings Limited, the Kapur Family Trust, Karan Kapur, and Varun Kapur. Collectively, these promoters own a total of 131,679,484 equity shares with a face value of ₹ 1 each, representing 100.00% of the company's issued, subscribed, and paid-up equity share capital. According to the red herring prospectus (RHP), among the comparable companies are Jubilant FoodWork Ltd, which has a P/E of 205.81, Devyani International Ltd with a P/E of 2,097.13, Sapphire Foods India Ltd at a P/E of 548, and Westlife Foodworld Ltd, which has a P/E of 955.26, along with Restaurant Brands Asia Ltd. The firm stands out as a prominent entity in the rapidly expanding Indian airport travel quick service restaurant (Travel QSR) and lounge markets, as indicated by revenue figures for fiscal 2025. According to the CRISIL Report, its revenue-based market share is approximately 26% within the Indian airport travel QSR sector and around 45% in the Indian airport Lounge sector for fiscal 2025, which includes contributions from Associates and Joint Ventures. India is projected to sustain strong growth in both domestic and international air passenger traffic, with domestic air passenger numbers expected to grow at a CAGR of 8% to 9% and international air passenger traffic at a CAGR of 6% to 8% from Fiscal 2025 to Fiscal 2034. Moreover, the growth in air passenger traffic in India is being driven by the economic accessibility of air travel made possible by low-cost carriers (LCCs). The proportion of LCCs in domestic air passenger traffic has risen from 66% in Fiscal 2016 to 78% in Fiscal 2024, and stands at approximately 75% for the six months ending September 30, 2024. Travel Food Services has demonstrated robust financial results over the past few years, with profits in fiscal 2025 increasing by 27.4% to ₹ 379.7 crore, and revenue rising by 20.9% to ₹ 1,687.7 crore compared to the previous year. Leading player in the Travel QSR and Lounge sectors in Indian airport. Strong expertise in operating and handling the distinct challenges of F&B in the operationally complex and highly secure airport environment. Proven and established track record of long-term working relationships with airport operators. Diversified portfolio of partner F&B brands franchised from high-quality brand partners and inhouse F&B brands. Deep understanding of traveller preferences with a focus on delivering a quality customer experience. Experienced management team, supported by our synergistic partnerships with SSP and K Hospitality. The firm manages a Travel QSR and a Lounge operation, with locations in airports across India, Malaysia, and Hong Kong. These operations are conducted both directly and through their Associates and Joint Ventures. Additionally, they run Travel QSRs at specific highways in India. The firm's group companies include Deluxe Caterers Private Ltd, Global Kitchens Private Ltd, GMR Hospitality Ltd, Kapco Banquets and Catering Private Ltd, Mumbai Airport Lounge Services Private Ltd, Semolina Kitchens Private Ltd, Select Service Partner Malaysia Sdn Bhd, Select Service Partner UK Ltd, SSP Financing UK Ltd, SSP TFS HK Lounge Ltd, Tabemono True Aromas Private Ltd, The Irish House Food and Beverages Private Ltd, Travel Food Works Private Ltd, and Travel Retail Services Private Ltd. Some of the key risks are as follows; The Travel QSRs and Lounges at the leading five airports accounted for 85.94%, 88.36%, and 90.29% of the firm's operational revenue for the fiscal years 2025, 2024, and 2023, respectively. The termination of their concession agreements or a decline in passenger traffic at these airports could significantly affect their revenue. The company's growth may be negatively impacted by changes in the operating models of their airport operators, potentially decreasing their profit share resulting from the relevant concession agreements with those operators. A lock-in period of 90 days will apply to 50% of the equity shares allocated to the anchor investors starting from the date of allotment, while the other 50% of the equity shares allotted to the anchor investors will have a lock-in period of 30 days from the date of allotment. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Daily Mail
18 hours ago
- Business
- Daily Mail
SSP shares soar as Caffe Ritazza owner preps £1.2bn IPO for Indian JV
SSP Group shares jumped on Wednesday after the food retailer revealed a roughly £1.2billion valuation for its Indian joint venture business ahead of an IPO. The Upper Crust and Caffe Ritazza owner said the initial public offering of Travel Food Services (TFS) has a price band of 1,045 to 1,100 Indian Rupees per share. This implies a market valuation of between 137.6 billion and 144.8 billion Indian Rupees, or about £1.17billion to £1.23billion at current exchange rates. SSP initially hoped the listing would occur during the spring, following the filing of a draft red herring prospectus with the Indian regulatory authorities in December. It intends to purchase 1 per cent of TFS's issued share capital for around £12.5million, which will take its overall stake in the business to above 50 per cent. Shares in the London-listed firm soared 8.5 per cent to 188.5p by mid-Wednesday afternoon, making them the FTSE 250 Index's biggest riser. Headquartered in Mumbai, TFS operates dozens of lounges and hundreds of quick-service restaurants across 14 airports in India and three in Malaysia. In addition to in-house brands like and Dilli Streat, the group runs franchise outlets of famous global food-to-go companies, including KFC, Domino's Pizza, and Jamie Oliver's Pizzeria. It is co-owned by SSP and K Hospitality, an Indian food service business with over 500 locations, whose shareholding entity is the Kapur Family Trust. Trading in TFS shares is set to begin on the Indian stock exchanges on 14 July. Once the IPO is completed, SSP's deputy chief executive, Jonathan Davies, and Asia-Pacific boss, Jonathan Robinson, will join TFS's board. SSP's announcement comes as the company embarks on a cost-cutting programme to improve margins and returns amidst more challenging economic conditions. 'Recent geopolitical events have led to a heightened level of uncertainty across some of our travel markets, in particular in North America,' the firm told investors in May on the release of its half-year results. For the six months ending March, the group's turnover increased by 9 per cent to £1.6billion, supported by the acquisition of the Midfield Concessions business in Denver. In the UK and Ireland, SSP's revenue rose by 15.4 per cent to £892.5million thanks to continued growth in rail commuter numbers and strong demand in the air channel. Its operating profits also climbed by 20 per cent to £45million, although on a statutory basis, they slumped by around three-quarters to £15million due to costs from an IT transformation project and the recognition of impairment charges.
Reuters
20 hours ago
- Business
- Reuters
India's Travel Food Services plans $233.5 million IPO; eyes $1.69 billion valuation
July 2 (Reuters) - Airport restaurants operator Travel Food Services has set a price band of 1,045 rupees-1,100 rupees for its initial public offering, a newspaper ad showed on Wednesday, following HDB Financial Services' blockbuster IPO. The price band values Travel Food Services, which plans to raise 20 billion rupees ($233.49 million) via a three-day share sale beginning July 7, at 144.8 billion rupees ($1.69 billion) at the upper end of the range. The issue will consist solely of the company's largest shareholder, Kapur Family Trust, divesting its shares. It was not immediately clear if the Trust would divest all its shares. Travel Food Services did not immediately respond to a Reuters request for comment. India's IPO has picked up steam after a slow start this year, due to market gyrations from global trade worries and a domestic border conflict. HDB Financial Services jumped more than 13% in its trading debut on Wednesday, with its $1.5 billion IPO turning out to be India's largest in 2025 and the largest ever by a non-banking financial company. Travel Food Services, a joint venture between UK-based restaurant operator SSP Group (SSPG.L), opens new tab and India's K-Hospitality, said it has a revenue-based market share of about 26% in the domestic airport restaurant sector. It operates brands such as Wendy's and Subway as well as airport lounges, in which it has a 45% domestic market share, as per a CRISIL report. The company's revenue from operations rose nearly 21% in fiscal 2025 to 16.88 billion rupees, while profit jumped more than 27% to 3.8 billion rupees, according to its prospectus. Competitor Dreamfolks Services ( opens new tab is valued at about 12.11 billion rupees. According to PRIME Database, there are 143 Indian IPOs being planned worth a potential $26 billion. Regulators have so far approved 73. ($1 = 85.6580 Indian rupees)
The Independent
20-05-2025
- Business
- The Independent
Upper Crust owner unveils cost-cutting plan and delays listing Indian business
Upper Crust and Caffe Ritazza owner SSP has launched a plan to cut costs and said it would postpone the flotation of its Indian business due to market woes. The group, which runs food outlets at travel locations such as airports and train stations, said it was launching a 'substantial', group-wide, cost-cutting overhaul throughout the next six months amid a more uncertain economic outlook. SSP signalled potential job cuts under the plan, as it said it would 'scale back our support costs' to 'reduce duplication and complexity'. It declined to comment on the possible jobs impact, but said it would also be looking to make savings through other efforts including supply chains, menu changes and staff rota management. The group said the move comes amid a 'heightened level of uncertainty' across some travel markets, in particular in North America due to recent 'geopolitical events'. 'We believe it is prudent to plan for a degree of ongoing uncertainty of demand through the second half,' it added. Turbulent stock market conditions in India have also seen it put back the planned listing of Travel Food Services, which it runs with K Hospitality in India. In the UK, where it runs 55 franchised Marks & Spencer outlets, the group said recent trading had seen like-for-like sales rise 10% in the six weeks to May 11 despite a 'modest' impact from the M&S cyber attack disruption. Patrick Coveney, chief executive of SSP Group, said: 'We recognise the importance of driving enhanced performance, and we are executing against our agenda to achieve this. 'Our accelerated actions include a decisive turnaround plan for our Continental European business, a programme to deliver the full benefits of recent strategic and capital investments and a further step up in initiatives to deliver cost efficiencies.' Half-year results on Tuesday showed underlying operating profits lifted 20% to £45 million in the six months to the end of March. On a statutory basis, it swung to a pre-tax loss of £37 million from profits of £13 million a year earlier.
Times
20-05-2025
- Business
- Times
Upper Crust owner SSP delays float of Indian business
SSP, the travel catering group behind Upper Crust and Caffe Ritazza, has started a cost-cutting drive and pushed back the planned float of its joint venture in India as it grapples with a 'heightened level of uncertainty' in some of its markets. The planned initial public offering of Travel Food Services, which it runs with K Hospitality in India, has been delayed to the summer as it waits for stock market conditions to recover. 'Recent geopolitical events have led to a heightened level of uncertainty across some of our travel markets, in particular in North America,' the company said in a statement. The announcement came alongside half-year results, which showed operating profit at the FTSE 250 company rose 20 per cent to £45 million, up
