Latest news with #TravelFoodServices
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.
Skift
3 hours ago
- Business
- Skift
India's Leading Airport Lounge and Food Operator Is Launching Its IPO: What to Know
As air travel booms in India, companies tied to aviation services are heading to the stock market. As more people fly, investors are showing interest in the businesses behind the scenes. Indian airport food and lounge operator Travel Food Services (TFS) is preparing to go public. The Mumbai-based company will open its INR 20 billion ($233.5 million) initial public offering on July 7. The offer will close on July 9, with shares expected to begin trading on July 14. The IPO is a pure offer for sale, meaning the company won't raise any new money. Existing promoter Kapur Family Trust will sell part of its stake. Travel Food Services will not receive proceeds from the listing as the IPO will not be issuing any new shares. Other promoters include SSP Asia Pacific Holdings, which also runs food outlets and lounges across airports. What TFS Does? TFS may not be a household name, but it is a familiar presence in India's airports. If you've ever grabbed a quick meal in Mumbai or waited for a flight in a Bengaluru lounge, chances are, you've experienced one of its services. The company runs food courts, quick-service restaurants, and airport lounges. As of March 31, it operated the largest network of food outlets at airports and highways in India, according to data from ratings agency CRISIL. Of its 413 locations, 384 were at airports, while the rest were on highways. The company also ran the largest private lounge network, with 28 lounges across 10 Indian airports. In India, its footprint covers nearly all major airports, including Delhi, Mumbai, Bengaluru, and Hyderabad. These airports account for nearly three-quarters of the country's total air traffic. In total, TFS operates 37 lounges across India, Malaysia, and Hong Kong. This includes eight lounges in three airports in Malaysia, one in Hong Kong. The company also operates 29 quick-service restaurant outlets across two Malaysian airports. 'We are market leaders in the segment, both on the travel QSR side, as well as lounges,' said Varun Kapur, managing director and CEO of TFS at a press conference on Wednesday. 'We have a significant leadership over many of the players that operate here, because it's a very focused initiative for us. We don't confuse. We don't look left and right. It's all about travel (and food) for TFS. It's a clear, focused effort of delivering value in these channels for us.' Revenue and Business TFS divides its business into two key verticals: food and lounges. The food portfolio includes outlets for international brands like KFC, Domino's, and Starbucks, as well as in-house concepts such as Dilli Streat and Curry Kitchen. The lounges, operated under the company's 'Araya' brand umbrella, serve premium passengers, which includes those flying business class or holding qualifying credit cards or loyalty memberships. Some lounges also accept walk-in travelers who pay directly. The company reported a 20% increase in revenue to INR 16.8 billion ($196 million) in the year ending March 2025. Profit after tax climbed 27% to INR 3.8 billion ($44 million) from the previous year. Revenue comes from a combination of franchise commissions, royalties, lounge access fees, and direct food and beverage sales. With most of its locations inside transit hubs, TFS benefits from consistent foot traffic and higher customer spending. The company is betting that India's growing middle class, expanding airports, and changing travel habits will keep its business growing. TFS runs food courts, quick service restaurants (QSRs), and premium lounges in airports. Growth Plans and Expansion TFS is expanding its reach beyond India. It already runs lounges in Malaysia and recently launched operations in Hong Kong. Under a partnership with its promoter SSP, TFS will license its Araya lounge brand to be used across Europe, North America, and Australasia. SSP will pay a franchise fee to TFS for access to the system. Meanwhile, TFS will retain rights to develop the brand in India, Southeast Asia, and the Middle East. 'So as a first level, the Asia Pacific and the Middle East regions are areas which will be focused on,' Kapur said. He pointed to shared demographic trends, rising air traffic, and investment in airport infrastructure as key reasons for focusing on those geographies. India's lounge market is still in its early stages. Most airports have fewer lounges per terminal compared to global hubs. But that is changing quickly. CRISIL estimates the Indian lounge industry could grow sevenfold over the next decade, driven by rising disposable incomes and changing travel preferences. Food services at airports are also on the rise. The Indian airport food market has doubled in the last five years and is projected to nearly triple by 2034. Indian airport operator Adani Airport Holdings, the company that controls more than 50% of top 10 domestic routes, and it accounts for close to 25% of the air traffic in India, is also planning to launch an IPO by fiscal 2028. Competition in a Crowded Terminal TFS faces competition on both the food and lounge sides of its business. In lounges, rivals include Encalm Hospitality and Saptagiri Restaurant. In food services, global players like HMSHost and Lite Bite Foods are also active in Indian airports. What gives TFS an edge, the company says, is its ability to offer both food and lounge services under one umbrella. That makes it more attractive to airport operators and helps streamline costs. As India builds out its airport infrastructure and air travel continues to grow, TFS is positioning itself as the go-to partner for airports looking to upgrade traveler experiences. But as more players enter the market, the challenge will be maintaining scale without losing focus, something Kapur insists TFS is built to do.
&w=3840&q=100)
Business Standard
16 hours ago
- Business
- Business Standard
Kapur Family Trust to partially sell stake in Travel Food Services
Kapur Family Trust, one of the promoters of Travel Food Services, will partially sell its stake worth ₹2,000 crore in the company through the initial public offering (IPO). The IPO is a complete offer-for-sale issue. The price band is set in the range of ₹1,045 to ₹1,100 per equity share with a face value of ₹1 each. The IPO will open on July 7 and close on July 9. 'We have a decent amount of cash balance on the books, more than ₹600 crore as of March end, and we are in a good place as a business to expand and take care of our expansion needs,' Varun Kapur, managing director and chief executive officer, told Business Standard. 'The perspective was to get listed at some point in time, and we have finally taken that decision right now. It (the listing) was the right thing for the business, it gives you credibility. Since the business is in such a good financial position, the additional funds for the company through the IPO didn't make much sense,' he added. After the IPO, the two major promoters, the Kapur Family Trust, a part of K Hospitality Corp., and SSP Group, will see a change in their shareholding. Both the promoters together will have 85 to 86 per cent shareholding in the company, Kapur added. The Kapur Family Trust will have about 36 per cent stake in the company, while the SSP Group will increase its stake by 1.01 per cent to reach 50.01 per cent before the IPO In the travel quick service restaurants (QSR) segment, the company has 127 brands, with 37 in-house brands like and Noodle Wok. It also runs franchisees of 32 international brands like Pizza Hut, KFC, and Subway, and 58 regional brands like Madras Cafe House, Third Wave Coffee, and Wow Momo. For the lounge segment, it is currently present across 14 airports in India and four in international locations across Malaysia and Hong Kong as of March 2025. 'Our first focus is to be in APAC (Asia-Pacific) and the Middle East (in terms of 747 lounge business). We look at every opportunity, but these are the main focus markets for now,' said Kapur. He also noted that there has been a rise in demand from both business and leisure travellers for the lounge services in India. Focused on the travel segment, the company further plans to expand its presence on highways. Kapur emphasised that the expansion and modernisation of national highways in India is a huge opportunity, as Indian travellers are soon adapting to the western culture of long road travel. 'We have entered (the highway segment)... (it is) quite small to get a flavour of it. For now, it is just one per cent of our revenue,' he added. During the IPO conference, he mentioned that there is a strong growth opportunity for expressway travel QSR in India.
Daily Mail
19 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)
