Travel Food Services IPO opens today to raise Rs 2,000 crore; Anil Singhvi recommends long-term investment

Mumbai-based travel quick service restaurant (QSR) company Travel Food Services has opened its initial public offering (IPO) for public subscription today, July 7, 2025. The company aims to raise Rs 2,000 crore at the upper price band of Rs 1,100 per share.

The IPO is a book-building issue comprising an Offer For Sale (OFS) of 18.2 million equity shares by the Kapur Family Trust, the promoter selling shareholder. There is no fresh issue component in this offering. The company has reserved up to 50 per cent of the net offer for qualified institutional buyers (QIBs), at least 35 per cent for retail investors, and a minimum of 15 per cent for non-institutional investors.

Ahead of the public issue, Travel Food Services raised Rs 600 crore from anchor investors, including ICICI Prudential Mutual Fund, Axis Mutual Fund, Kotak Mutual Fund, Baroda BNP Paribas Mutual Fund, Abu Dhabi Investment Authority, Fidelity, and Government Pension Fund Global, at the upper price band.

The IPO price band is fixed between Rs 1,045 and Rs 1,100 per share, with a lot size of 13 shares. Retail investors can apply for a minimum of one lot, costing Rs 14,300, and a maximum of 13 lots, amounting to Rs 1,85,900.

Market expert Anil Singhvi has recommended investors apply with a long-term investment horizon of one to two years. He highlighted the company’s experienced promoters and its dominant market presence, covering 74 per cent of air passenger traffic at key airports. Singhvi also noted the strong growth potential in both the Quick Service Restaurant (QSR) and airport lounge segments.

The company’s impressive financial track record, marked by profitability, strong cash flows, and zero debt, adds to its appeal. However, Singhvi cautioned that the IPO is purely an OFS, meaning no fresh capital will flow into the company. He also pointed out the risks of revenue concentration in just five major airports and potential competition from government initiatives such as the “Udaan Yatri Cafe.”

Despite these concerns, Market guru Singhvi sees Travel Food Services as a solid long-term investment opportunity, given its leadership position and growth prospects.