Travel Food Services gets Sebi's approval to launch Rs 2,000-cr IPO

Travel Food Services, which operates quick-service restaurants and lounge business across airports in India and Malaysia, has received Sebi's go-ahead to float a Rs 2,000-crore initial public offering, an update with the markets regulator showed on Tuesday. 

The proposed IPO is entirely an offer-for-sale (OFS) of shares worth Rs 2,000 crore by promoter Kapur Family Trust, according to the draft red herring prospectus (DRHP). 

The company, which filed its draft papers with Sebi in December last year, obtained its observations letter on April 22, the update showed. 

In Sebi's parlance, obtaining observation letter by listed companies means its go-ahead to launch the public issue.

Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder. 

Travel Food Services launched its first travel quick-service restaurant (QSR) outlet in 2009. It is promoted by SSP Group Plc (SSP) and its affiliates SSP Group Holdings Ltd, SSP Financing, SSP Asia Pacific Holdings, along with the Kapur Family Trust, Varun Kapur and Karan Kapur. 

SSP, an FTSE 250 company listed on the London Stock Exchange, is recognised as a global leader in the Travel Food & Beverage (F&B) sector. 

The Kapur Family Trust operates under the flagship brand K Hospitality, which oversees and invests in several hospitality and food service businesses, including Travel Food Services (collectively referred to as K Hospitality). 

Mumbai-based Travel Food Services' portfolio features a diverse selection of F&B concepts tailored for travellers, including cafes, bakeries, food courts and bars, primarily located in airports and some highway locations. 

The company's presence spans 14 airports in India, including major hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai, as well as three airports in Malaysia, as of June 30, 2024. 

As of June 30, 2024, Travel Food Services boasts a diverse portfolio of partner brands, comprising both international and regional Indian brands, alongside its in-house brands. 

Additionally, Travel Food Services has developed its own in-house brands, including CafA©ccino, Dilli Streat, idli.com and Curry Kitchen. 

For the three months ended June 30, 2024, the company's revenue from operations stood at Rs 409.86 crore and profit after tax stood at Rs 59.55 crore. 

Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India), ICICI Securities, and Batlivala & Karani Securities India are the book-running lead managers to the issue.