IPO Note : Travel Food Services Ltd by Choice Broking Ltd
Salient features of the IPO:
* Travel Food Services Ltd. (TFSL), is a fast-growing Indian airport travel quick service restaurant (QSR) operator, offering a diverse range of curated food and beverage (F&B) concepts across various cuisines, brands, and formats. The company also operates in the Lounge sector, managing designated areas within airport terminals to provide premium services to travellers, is coming up with an IPO to raise around Rs. 2,000cr, which opens on 7 th July. and closes on 9 th July. 2025. The price band is Rs. 1,045 – 1,100 per share.
* The IPO solely comprises of OFS (Rs. 2000cr).
* Post-IPO, the P&PG and public shareholders will have 85.47% and 14.53% stake in the company, respectively
Key competitive strengths:
* Leading player in the Travel QSR and Lounge sectors in Indian airports
* Strong expertise in operating and handling the distinct challenges of F&B in the operationally complex and highly secure airport environment
* Proven and established track record of long-term working relationships with airport operators
* Diversified portfolio of partner F&B brands franchised from high-quality brand partners and in-house F&B brands
* Deep understanding of traveller preferences with a focus on delivering a quality customer Experience
* Experienced management team, supported by our synergistic partnerships with SSP and K Hospitality
Risk and concerns:
* General slowdown in the global economic activities
* The Travel QSRs and Lounges at the top 5 airports contributes the major part of the revenue
* We depend on our relationship with our brand partners to franchise their brands
* Competition
Below are the key highlights of the company:
* The Indian aviation sector witnessed a CAGR of 9.2% and 3.6% in terms of domestic and international passengers between Fiscal 2015 and Fiscal 2024, according to the CRISIL Report. Similarly, the Travel QSR sector in Indian airports has demonstrated robust growth, with a CAGR of 15% between Fiscal 2019 and Fiscal 2024, driven by increased air passenger traffic and the evolving Travel QSR landscape. Airports now accommodate global, regional, and local brands, as well as standalone Travel QSRs, to meet consumers’ diverse culinary preferences, as highlighted in the CRISIL Report
* The Indian lounge industry also experienced significant growth, with a CAGR of 26% between Fiscal 2019 and Fiscal 2024, driven by airport infrastructure expansion, a rise in credit and debit card usage, and an increase in airline frequent flyer and loyalty program participation. The Indian lounge industry is projected to grow at a CAGR of 21-23% between Fiscal 2024 and Fiscal 2034, reaching an estimated size of Rs.15,500– 16,500 crore. Additionally, the global lounge market is expected to grow at a CAGR of 8.5–10.5% between 2023 and 2029 in the medium term and at a CAGR of 7.5–8.5% between 2023 and 2034 in the long term, reaching a market size of Rs.1,25,000–1,30,000 crore by 2034, as reported by CRISIL.
* By FY 2025, TFSL commanded approximately 26% of India’s airport Travel QSR segment and 45% of the airport Lounge sector by revenue— establishing itself as the national leader in both categories. This dominance spans contributions from its own operations as well as associates and joint ventures, solidified through consistent financial performance and scale.
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