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The IPO of Travel Food Services (TFS), India’s leading airport food chain, is closing today. However, the appetite from investors has been underwhelming so far. Despite a strong brand presence across major airports, solid financials and a debt-free balance sheet, the IPO has struggled to gain meaningful traction.
So what’s holding back the buzz on day 3? Let’s unpack the numbers—and the narrative.
What’s happening on day 3?
As of July 9, 2025, the IPO has seen only 38 per cent overall subscription. Here’s the break-up:
- Retail: 0.36x
- HNIs (non-institutional): 0.36x
- QIBs (institutional): 0.44x
The grey market premium (GMP) also remains subdued at Rs 8, rising only 0.7 per cent above the upper end of the issue price of Rs 1,100.
What does TFS do?
If you’ve grabbed a quick bite at an Indian airport, chances are TFS had something to do with it. The company operates nearly 400 food outlets and lounges across 17 airports, offering brands such as Domino’s, Starbucks, KFC and its own in-house kitchens.
TFS controls over a quarter of India’s airport QSR market and nearly half of the lounge segment. It’s also one of the few zero-debt airport F&B players in Asia, making it a direct play on India’s booming aviation sector.
Strong story, but soft response. Why?
TFS has posted solid numbers:
- FY25 revenue: Rs 1,763 crore (up 21 per cent)
- Net profit: Rs 380 crore (up 27 per cent)
- EBITDA margin: 38 per cent
- ROCE: 51 per cent
And yet, it hasn’t excited the street. One reason? It’s a 100 per cent offer for sale (OFS) – no fresh funds will flow into the business. That’s often a red flag for investors looking for capital deployment into growth.
Also, with IPO valuations at a P/E of 38 and P/B of 14, some feel there’s little room left on the upside, especially when listing gains look limited.
Should you bite?
- If you’re in for the long haul: TFS has the ingredients for growth. Airport traffic is booming, the brand portfolio is solid and operations are lean.
- If you’re chasing a listing pop: Tread carefully. The demand is muted, and the GMP isn’t throwing up any fireworks.
- Risks to watch: Any slowdown in travel or operational hiccups at airports could hit footfalls and sales.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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