Shares of Travel Food Services, a leading player in airport-based quick service restaurants (QSRs) and lounges, listed at a premium of 2.38% on BSE on Monday.
The stock debuted at Rs 1,126.20 on BSE and Rs 1,125 on NSE, compared to its issue price of Rs 1,100.The IPO received a moderate response from investors, closing with 3.03x overall subscription.
The QIB (Qualified Institutional Buyer) category saw the strongest demand at 8.10x, while retail participation remained muted at just 0.73x.
The NII segment was subscribed 1.67x, reflecting cautious optimism among high-net-worth individuals.Travel Food Services, backed by the UK-based SSP Group, operates 397 QSR outlets and lounges across 14 airports in India and three in Malaysia, including hubs like Mumbai, Delhi, Bengaluru, and Chennai.The company boasts a diverse F&B brand portfolio of 117 partner and in-house brands, catering to the growing demand for food and travel services in high-footfall transit locations.Financially, the company reported steady earnings growth in FY25, supported by strong EBITDA margins (40%) and ROE of 35.47%.
However, the IPO's valuation at a P/E of 48.6x has drawn some concern, especially given its entirely secondary nature, with no fresh capital infusion.Live EventsWhile anchor investors committed nearly Rs 599 crore ahead of the issue, the lack of overwhelming retail traction and limited upside in GMP indicate a measured market outlook for the listing.With a first-mover advantage in India's niche airport F&B segment and strong international backing, the company is well-positioned for long-term growth, though near-term listing fireworks appear unlikely.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own.
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