The Travel Food Services (TFS) IPO opened on July 7, 2025, and closes on July 9, 2025. The IPO aims to raise ₹2,000 crore through an offer for sale of 1,81,81,818 equity shares. Here's a breakdown of the IPO and factors to consider before applying:

Subscription Status:

• By 10:06 AM on the second day of bidding, the IPO was subscribed 12%.
• The retail portion was subscribed 16%, the NII portion 9%, and the QIB portion 7%.
• On the first day, the IPO was subscribed 10% overall. The retail portion was booked the most at 14%, followed by the QIB portion at 7% and the NII portion at 6%.

Price Band and Lot Size:

• The IPO price band is set at ₹1,045 to ₹1,100 per share.
• The lot size is 13 shares, requiring a minimum investment of ₹14,300.
• Retail investors can apply for a maximum of 13 lots, totaling 169 shares for ₹1,85,900.

Grey Market Premium (GMP):

• The Grey Market Premium (GMP) for Travel Food Services IPO is ₹30 today.
• This is a decrease from ₹30 a day ago.
• At the current GMP, Travel Food Services shares could list at ₹1,116, a premium of just 1.45%.
• GMPs are subject to change and shouldn't be the sole factor in investment decisions.

Company Overview:

• Travel Food Services is the leading player in the travel QSR and lounge sectors in Indian airports.
• As of FY24, it holds a market share of 24% in the travel QSR sector and 45% in the lounge sector.
• The company operates the largest network of travel QSRs in India, with 313 out of 340 operational outlets located in airports, and 24 lounges across major hubs.
• TFS enjoys strong revenue visibility due to long-term concession agreements with major airports, averaging 8.2 years. It is present in 13 of the top 15 airports in India.

Financial Performance:

• TFS has demonstrated robust financial performance.
• In FY25, TFS reported revenue of Rs 1,688 crore, EBITDA of Rs 676 crore, and net profit of Rs 380 crore.
• The company's return on equity stood at 34.5%, with PAT margins at 21.5%.
• Revenue from operations increased from Rs 389.61 crore in FY22 to Rs 1,396.32 crore in FY24.
• PAT dramatically increased from Rs 5.03 crore in FY22 to Rs 298.02 crore in FY24.

IPO Details:

• The IPO is entirely an offer for sale (OFS), meaning the proceeds will go to the selling shareholders.
• A portion of the shares (40,382) is reserved for employees, offered at a discount of ₹104 to the issue price.
• The IPO is proposed to be listed on the NSE and BSE.
• The likely date for share allocation is July 10, 2025, and the listing date is expected to be July 14, 2025.

Brokerage Ratings:

• Arihant Capital has a "Neutral" rating on the IPO.
• Canara Bank Securities suggested a 'Subscribe' rating.
• Ventura Securities has assigned a 'subscribe' tag to the public issue.
• SBI Securities has given a Subscribe rating.

Key Considerations:

• Market Leadership: TFS is a leader in QSR services and F&B outlets at airports and highways.
• Growth Potential: The company is well-positioned to benefit from India's underpenetrated air travel market and strong highway QSR growth. Expansion plans include international markets like Malaysia and Hong Kong.
• Financials: The company has posted steady growth in its top and bottom lines.
• Valuation: The issue appears fully priced based on recent financial data. The IPO values the firm at 39.88x FY25 earnings.
• Risk Factors: Investors should consider the company fundamentals and their risk appetite before subscribing.

How to Apply:

• Investors can bid for a minimum of 13 shares and in multiples thereof.
• The IPO is open from July 7, 2025, to July 9, 2025.

In conclusion: The Travel Food Services IPO presents an opportunity to invest in a leading player in the growing airport QSR and lounge sector. However, potential investors should carefully consider the valuation, subscription levels, GMP trends, and their own risk tolerance before making a decision.