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Travel Food Services Files for ₹2,000 Crore IPO; Market Leader in Airport QSR
Last Updated: 11th December 2024 - 01:56 pm
Travel Food Services Ltd (TFS) has submitted draft papers to the Securities and Exchange Board of India (SEBI) to initiate an initial public offering (IPO) aiming to raise up to ₹2,000 crore. The IPO is structured as a pure offer-for-sale, with the Kapur Family Trust, which owns 51% of the company, divesting shares. SSP Asia Pacific Holdings holds the remaining 49%.
The offering is managed by Kotak Mahindra Capital, HSBC Securities, ICICI Securities, and Batlivala & Karani Securities.
TFS is a prominent player in India’s airport travel quick-service restaurant (Travel QSR) and lounge markets. Its QSR operations cater to the needs of travelers by providing diverse food and beverage options focused on speed and convenience.
of June 30, 2024, TFS operated 397 Travel QSR outlets, including 335 at 14 Indian airports, 30 across two airports in Malaysia, and 32 along eight highways in India. Out of these, 340 outlets are directly managed by TFS and its subsidiaries, while 57 are operated through partnerships and joint ventures.
In the lounge segment, TFS provides premium airport spaces for first and business-class passengers, loyalty program members, and select cardholders. By June 30, 2024, the company operated 31 lounges in India and Malaysia, with an additional lounge inaugurated in Hong Kong in July 2024. TFS holds a 24% revenue market share in India’s airport Travel QSR sector and commands a 45% share of the airport lounge market as of fiscal 2024.
For fiscal year 2024, TFS reported revenue of ₹1,396.32 crore, reflecting growth from ₹1,067.15 crore in fiscal 2023. Net profit also increased to ₹298.02 crore, compared to ₹251.29 crore in the prior fiscal year.
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