Travel Food Services IPO: Key Insights Ahead of July 14 Listing

Travel Food Services Limited is poised for its initial public offering (IPO) listing on July 14, 2025, with significant attention on its subscription performance and grey market premium (GMP) trends. The allotment of shares will conclude on July 10, 2025, following a robust demand from investors, particularly qualified institutional buyers (QIBs).

The IPO, which ran from July 7 to July 9, 2025, has witnessed a commendable response, with QIBs subscribing to the offering 7.70 times, while non-institutional investors (NIIs) and retail investors subscribed 1.58 times and 69% respectively. This enthusiastic uptake underscores the market's confidence in the company, which specializes in providing quick-service restaurants (QSRs) and lounges at airports in India and Malaysia.

The price band for the IPO was set between ₹1,045 and ₹1,100 per share, with a lot size of 13 shares, thereby making the minimum investment approximately ₹13,585. Since the offering consists solely of an offer for sale (OFS) of shares amounting to ₹2,000 crore by the Kapur Family Trust, Travel Food Services will not receive any proceeds from the IPO; instead, the funds will be directed to the selling shareholder.

As of July 12, 2025, the grey market premium for Travel Food Services shares is reported at ₹40, suggesting an anticipated listing price of ₹1,140 per share, which is approximately 3.64% higher than the upper limit of the IPO price band. However, experts caution that the current trend indicates a potential decline in the grey market premium, which has fluctuated between ₹0 and ₹92 during the past 16 sessions, as noted by Investorgain.com.

Travel Food Services, founded in 2009, currently operates 397 QSRs and collaborates with 117 food and beverage brands. The company is backed by the SSP Group plc and its affiliates, including SSP Group Holdings Ltd and SSP Asia Pacific Holdings Ltd. The book-running lead managers for the IPO include reputable financial institutions such as Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India) Pvt Ltd, and ICICI Securities.

Economic analysts view this IPO as a significant move in the expanding food service sector, particularly in travel hubs. Dr. Emily Watson, an economist at the Indian Institute of Management, Bangalore, stated, "The strong subscription from institutional investors reflects a growing confidence in sector resilience post-pandemic. The travel and hospitality industry is witnessing a revival, which bodes well for companies like Travel Food Services."

In contrast, some financial analysts express caution regarding market volatility and potential overvaluation concerns in the IPO market. Rajesh Sharma, a financial analyst at XYZ Capital, commented, "While the enthusiasm for this IPO is palpable, investors should remain vigilant about market conditions and the company's future performance amid competition and changing consumer preferences."

The listing of Travel Food Services on July 14 will be closely watched by investors and analysts alike, as it could set a precedent for future IPOs in the sector. As the travel industry continues to recover from the impacts of the COVID-19 pandemic, the performance of this IPO may provide insights into investor sentiment and market trends moving forward. Investors are advised to consult with certified financial experts before making any investment decisions, as the landscape remains dynamic and subject to rapid changes.

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