Mumbai-based Travel Food Services (TFS) has filed its Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for its Rs 2,000 crore Initial Public Offering (IPO)
The IPO with a face value of Re 1 is entirely an offer for sale of up to Rs 2,000 crore by Kapur Family Trust. The offer includes reservations for subscriptions by eligible employees.
Compared to its listed industry peers like Jubilant FoodWorks, Devyani International, Sapphire Foods India, Westlife Foodworld, and Restaurant Brands Asia, Travel Food Service achieved the highest earnings per share (EPS) in fiscal 2024.
Revenue from operations increased by 30.85% to Rs 1,396.32 crore in fiscal 2024 from Rs 1,067.15 crore in fiscal 2023, attributable to an increase in its LFL Sales and Net Contract. Profit after tax increased by 18.59% to Rs 298.02 crore in fiscal 2024 from Rs 251.30 crore in fiscal 2023.
For the three months ended June 30, 2024, revenue from operations stood at Rs 409.86 crore, and profit after tax stood at Rs 59.55 crore.
The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is allocated to non-institutional and retail individual investors respectively.
SSP, an FTSE 250 company listed on the London Stock Exchange, is recognized as a global leader in the Travel Food & Beverage (F&B) sector based on revenue in 2024, as per the CRISIL Report.
In Fiscal 2024, the company commanded a 24% revenue market share (including its Associates and Joint Ventures) in the Indian airport Travel QSR sector, as highlighted by the CRISIL Report. It also managed the largest network of private airport Lounges in India as of March 31, 2024, operating 24 Lounges across eight airports and capturing a 45% revenue market share in the airport Lounge sector during the same period. From 2009 until June 30, 2024, TFS contract retention rate is at 92%.
The company’s presence spans 14 airports in India, including major hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai, as well as three airports in Malaysia, as of June 30, 2024.
Travel Food Services boasts the largest network of Travel QSR outlets and airport-based QSRs in India, with 313 of its 340 operational outlets located at airports and the remainder on highways, as of March 31, 2024, according to the CRISIL Report.
The Indian airport Travel QSR and Lounge sectors are projected to experience significant growth, driven by increasing traveller dwell times, the rise of low-cost carriers, and the expansion of credit card and loyalty programs. As per the CRISIL Report, the Indian airport Travel QSR market is expected to grow at a compound annual growth rate (CAGR) of 17%-19%, while the Lounge sector is forecasted to grow at a CAGR of 21%-23% between Fiscal 2024 and 2034.
Kotak Mahindra Capital Company Limited, HSBC Securities and Capital Markets (India) Private Limited, ICICI Securities Limited, and Batlivala & Karani Securities India Private Limited are the book-running lead managers and Link Intime India Private Limited is the registrar to the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
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