India’s aviation sector is booming, and so is the demand for food and beverages at airports. One company leading this space is Travel Food Services (TFS), which is now hitting the stock markets with its highly anticipated IPO. If you’re considering applying, this article gives you a detailed breakdown of the Travel Food Services IPO, including its GMP, valuation, pricing, and whether it deserves a place in your portfolio.

About Travel Food Services

Travel Food Services is one of India’s largest operators of airport food courts, quick-service restaurants (QSRs), and lounges. It has a strong presence in over 13 major airports in India, operating 400+ outlets under global brands like KFC, Domino’s, and Subway, as well as its own in-house brands like Caféccino and Dilli Streat.

With its international joint venture partner, SSP Group, TFS is also expanding in global markets like Malaysia and Hong Kong. This combination of global reach and local expertise has helped TFS become a market leader in airport hospitality.

Travel Food Services IPO Details

Here’s everything you need to know about the IPO:

IPO Opening Date: July 7, 2025
IPO Closing Date: July 9, 2025
Listing Date: Expected on July 14, 2025
Price Band: ₹1,045 – ₹1,100 per share
Lot Size: 13 shares (minimum investment ~₹14,300)
Total Issue Size: ₹2,000 crore (Offer for Sale)
Face Value: ₹2 per share
Listing on: NSE and BSE

This IPO is a pure Offer for Sale (OFS), meaning the promoters are selling part of their stake and no fresh funds are being raised for the company.

Grey Market Premium (GMP)

The grey market premium (GMP) is an important indicator of investor sentiment before listing. As of now, the Travel Food Services IPO is commanding a GMP of ₹35–₹45. This suggests a potential listing price between ₹1,135 and ₹1,145, implying a moderate premium of 3–4% over the upper price band.

However, GMPs are highly volatile and not always a guarantee of listing gains. Investors should focus on the company’s fundamentals rather than just grey market trends.

Financial Performance & Valuation

TFS has shown impressive growth over the last few years:

Revenue (FY25): ₹1,763 crore
Profit After Tax (FY25): ₹380 crore
EBITDA Margin: ~40%
Return on Equity (ROE): ~35%

At the upper price band, the IPO is valued at a P/E ratio of ~39x on FY25 earnings. While this valuation seems high, it is in line with other QSR peers like Jubilant FoodWorks and Devyani International.

Strengths of Travel Food Services

Market Leadership: Dominant position in Indian airports and growing international presence.
Diverse Brand Portfolio: Mix of global franchises and in-house labels.
Strong Margins: High profitability and cash generation.
Long-Term Contracts: Average concession period of 8 years ensures revenue visibility.

Risks to Consider

Airport Dependency: A large portion of revenue comes from airport traffic, making it sensitive to travel disruptions.
Valuation Risk: The IPO is priced at a premium compared to broader market averages.
Contract Renewal Risk: Future margins depend on successful renewal of key airport contracts.