Mumbai: India’s largest operator of food and beverage outlets at transport hubs, Travel Food Services (TFS)’s IPO has received an 18% subscription by 2pm on day 2 of its IPO. The company aims to raise Rs.2000 cr through an Offer For Sale (OFS) issue by the promoters Kapur family trust. At 10 am on July 9, the retail portion of the issue was subscribed 0.34 times, while the QIB and NII segments were subscribed 0.19 and 0.25 times, respectively.
The IPO has a price band of Rs.1,045 to Rs.1,100 per share, with a grey market premium of Rs.15 per share.
The company operates a total of 117 partner and in-house brands across airports in India and three in Malaysia. The company had earlier raised Rs.599 cr from 33 anchor investors at Rs.1,100 per share. Institutional investors like Abu Dhabi Investment Authority, Axis Mutual Fund, Whiteoak Capital and Turnaround Opportunities Fund have invested in the company prior to the IPO.
The company is currently debt-free with its revenue increasing by 20.9% from last year. It had reported a net profit of Rs.379.66 cr with a revenue of Rs.1,762.71 cr. Currently, the company’s market capitalization is Rs.14,485 cr.
Many analysts are recommending a ‘buy’ status on this IPO as the company’s Quick Service Restaurants (QSRs) don’t have to face intense competition and cut throat pricing on high streets. Travellers at airports and highways pay more, and help the company earn strong margins- 22 percent net profit on average from FY22 to FY25.
