Travel Food Services, a prominent firm in quick-service restaurants (QSRs) and airport lounges, made a modest debut on the exchanges early in the day but plunged over 3 per cent in the afternoon session. The company’s shares listed at Rs. 1,126.20 on the Bombay Stock Exchange (BSE), just 2.38% above its IPO issue price of Rs. 1,100. On the National Stock Exchange (NSE), it opened at Rs 1,125,
The listing was largely in line with market expectations. The stock had been commanding a grey market premium (GMP) of around Rs. 25 ahead of the debut, signaling a likely opening near Rs.1,125.
Travel Food Services IPO Early Trends
The overall subscription came in at 3.03 times, with strong demand from institutional buyers. The Qualified Institutional Buyers (QIB) category was subscribed 8.10 times, while interest from high-net-worth individuals (NIIs) stood at 1.67 times. Retail participation, however, remained low at just 0.73 times, indicating mild response from small investors.
Financially, the company posted steady growth in FY25, supported by strong EBITDA margins of 40% and a healthy return on equity (ROE) of 35.47%. However, some investors were concerned about the IPO’s high valuation, with a P/E ratio of 48.6 times, especially since the company wasn’t raising any new funds and all the shares were being sold by existing shareholders.
Anchor investors (big & institutional investors) had shown confidence in the company ahead of the IPO, investing nearly Rs. 599 crore. But the subdued listing and lack of strong retail interest suggest that the broader market is taking a cautious approach for now.
Still, with its dominant position in the niche airport F&B space and international backing, Travel Food Services appears well-positioned for long-term growth. Just don’t expect explosive moves in the short term.
Backed by UK-based SSP Group, this company has 397 QSR outlets and lounges across 14 Indian airports and three international ones in Malaysia. Major hubs include Mumbai, Delhi, and Chennai. Its portfolio features 117 food and beverage brands, both in-house and franchise.
Travel Food Services Share Price
As of 1:19 PM, the shares stood at Rs 1088, showing a 3 per cent plunge from the opening price Rs. 1126 on BSE.
