 "Kapur Family Trust to partially sell stake in Travel Food Services")
Kapur Family Trust, one of the promoters of Travel Food Services, will partially sell its stake worth ₹2,000 crore in the company through the initial public offering (IPO).
The IPO is a complete offer-for-sale issue. The price band is set in the range of ₹1,045 to ₹1,100 per equity share with a face value of ₹1 each. The IPO will open on July 7 and close on July 9.
“We have a decent amount of cash balance on the books, more than ₹600 crore as of March end, and we are in a good place as a business to expand and take care of our expansion needs,” Varun Kapur, managing director and chief executive officer, told Business Standard.
“The perspective was to get listed at some point in time, and we have finally taken that decision right now. It (the listing) was the right thing for the business, it gives you credibility. Since the business is in such a good financial position, the additional funds for the company through the IPO didn’t make much sense,” he added.
After the IPO, the two major promoters, the Kapur Family Trust, a part of K Hospitality Corp., and SSP Group, will see a change in their shareholding. Both the promoters together will have 85 to 86 per cent shareholding in the company, Kapur added.
The Kapur Family Trust will have about 36 per cent stake in the company, while the SSP Group will increase its stake by 1.01 per cent to reach 50.01 per cent before the IPO
In the travel quick service restaurants (QSR) segment, the company has 127 brands, with 37 in-house brands like idli.com and Noodle Wok. It also runs franchisees of 32 international brands like Pizza Hut, KFC, and Subway, and 58 regional brands like Madras Cafe House, Third Wave Coffee, and Wow Momo. For the lounge segment, it is currently present across 14 airports in India and four in international locations across Malaysia and Hong Kong as of March 2025.
“Our first focus is to be in APAC (Asia-Pacific) and the Middle East (in terms of 747 lounge business). We look at every opportunity, but these are the main focus markets for now,” said Kapur.
He also noted that there has been a rise in demand from both business and leisure travellers for the lounge services in India. Focused on the travel segment, the company further plans to expand its presence on highways. Kapur emphasised that the expansion and modernisation of national highways in India is a huge opportunity, as Indian travellers are soon adapting to the western culture of long road travel.
“We have entered (the highway segment)... (it is) quite small to get a flavour of it. For now, it is just one per cent of our revenue,” he added. During the IPO conference, he mentioned that there is a strong growth opportunity for expressway travel QSR in India.