Travel Food Services Ltd IPO
Status: Current
Overview
IPO date
07 Jul 2025 to 09 Jul 2025
Face value
₹ 1 per share
Price
₹ 1045 to ₹1100 per share
Issue Size
18,181,818 shares
(aggregating up to ₹ 2000 Cr)
(aggregating up to ₹ 2000 Cr)
Allotment Date
10 Jul 2025
Listing at
NSE
Issue type
Book Building
Sector
Hotels & Restaurants
Objectives of Travel Food Services Ltd IPO
Initial public offer of up to [*] equity shares bearing face value Re.1 each ("Equity Shares") of travel food services limited ("The Company" or the "Issuer") for cash at a price of Rs.[*] per equity share (Including a Premium of Rs.[*] per Equity Share) ("Offer Price") aggregating up to Rs.2000.00 crores through an offer for sale ("The Offer") of up to [*] equity shares bearing face value of Re.1 each aggregating up to Rs. 2000.00 crores by the kapur family trust ("Promoter Selling Shareholder") (The "Offered Shares").
The offer includes a reservation of up to [*] equity shares bearing face value Re.1 each, aggregating up to Rs. [*] crores (Constituting up to 5% of the post-offer paid up equity share capital, for subscription by eligible employees ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute [*]% and [*]% of the post-offer paid-up equity share capital of the company.
Price Band: Rs. 1045 to Rs. 1100 per equity share of face value of Rs. 10 each.
The floor price is 1045 times of the face value and the cap price is 1100 times of the face value.
Bidscan be made for the minimum of 13 equity shares and in multiples of 13 equity shares thereafter.
A discount of Rs. 104 per equity shares is being offered to eligible employees bidding in the employee reservation portion.
Travel Food Services Ltd IPO Strategy
- Optimise our product offerings and service to grow like-for-like ("LFL") sales.
- Grow new space in existing markets and build strategic presence in new markets.
- Deliver operating synergies and leverage scale benefits.
- Optimise capital expenditure through best practices.
- Win with People.
About Travel Food Services Ltd
Travel Food Services Limited was originally incorporated as 'Bombay Pure Foods Private Limited' as a Private Company, pursuant to a Certificate of Incorporation dated November 20, 2007, issued by the Registrar of Companies, Maharashtra at Mumbai. Thereafter, the name of the Company was changed from 'Bombay Pure Foods Private Limited' to 'Travel Food Services Private Limited' on March 12, 2009. On the conversion of Company from a Private Limited to a Public Limited, name was changed to Travel Food Services Limited' and a fresh Certificate of Incorporation dated November 22, 2024 was issued by the Registrar of Companies, Central Processing Centre.
The Company operate a travel quick service restaurant (Travel QSR) and a lounge business across airports in India and Malaysia. The Company also has Travel QSR outlets at select highway sites in India. Travel QSR business comprises a range of curated F&B concepts for speed and convenience within travel environments. Travel QSRs are predominantly situated within airports, with select outlets in highway sites. Lounge business comprises designated areas within airport terminals, accessible primarily by first and business class passengers, members of airline loyalty programmes, select credit card and debit card holders and members of other loyalty programmes.
Since the opening of Company's first Travel QSR outlet in 2009, it has built capabilities and processes to effectively execute in, and address the distinct challenges posed by the operationally complex and highly secure airport environment, such as security clearances, stringent rules and restrictions, 24/7 operations, multi-brand and multi- unit concessions, alongside various supply chain and infrastructure constraints.
Through their Travel QSR and Lounge businesses, Company is present in 14 airports in India and 3 airports in Malaysia, as of June 30, 2024. Of the 14 airports in India in which it operate, 13 of them were amongst the 15 largest airports in the country by passenger traffic in 2024, based on air passenger traffic. Such airports include the Delhi airport, Mumbai airport, Bengaluru airport, Hyderabad airport, Kolkata airport, and Chennai airport. The Company so far, has operated the largest network of Travel QSRs outlets and airport Travel QSR outlets in India as of March 31, 2024, with 313 of the 340 operational outlets being situated in airports, and the remaining in highway sites.
The Company so far, has operated the largest network of Travel QSRs outlets and airport Travel QSR outlets in India as of March 31, 2024, with 313 of the 340 operational outlets being situated in airports, and the remaining in highway sites. The Company had 31 Lounges across India and Malaysia, as of June 30, 2024. In addition, a new Lounge was opened in Hong Kong in July 2024.
The Company is planning an Initial Public Offer by raising funds through Offer for Sale aggregating upto Rs 2000 Crore of face value of Re 1 each,
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T&C*
Strengths vs Risks of Travel Food Services Ltd
Know the pros & cons
Strengths
Leading Player in the Travel QSR and Lounge sectors in Indian airports.- Strong expertise in operating and handling the distinct challenges of F&B in the operationally complex and
highly secure airport environment.
- Proven and established track record of long-term working relationships with airport operators.
- Diversified portfolio of partner F&B brands franchised from high-quality brand partners and in-house F&B
brands.
- Deep understanding of traveller preferences with a focus on delivering a quality customer experience.
- Experienced management team, supported by our synergistic partnerships with SSP and K Hospitality.
Risks
- Revenue from its Travel QSRs and Lounges situated in airports contributed 95.55%, 95.88% and
95.77% of the company revenue from operations for Fiscals 2025, 2024 and 2023, respectively. The company is highly
dependent on its concession agreements for the company business operations and inability to renew existing
concession agreements or any adverse changes in the terms therein, early termination, or any inability
to obtain new concessions could adversely affect its business and results of operations.
- The Travel QSRs and Lounges at the top 5 airports contributed 85.94%, 88.36% and 90.29% of its
revenue from operations for Fiscals 2025, 2024 and 2023, respectively. Termination of the company concession
agreements in relation to or a decrease in passenger traffic in such airports could have a significant
impact on its revenue.
- The company depends on its relationship with our brand partners to franchise their brands, with revenue from
brand partners accounting for 54.37%, 54.44% and 54.06% of its revenue from Travel QSR for
Fiscals 2025, 2024 and 2023, respectively. Failures to attract new brand partners or maintain or
develop existing ones could adversely affect its business, results of operations, financial condition
and prospects.
- The success of its Lounge business is dependent on the company long-term relationship with its Lounge
Partners, comprising domestic and international airlines, card issuers and networks, loyalty partner
programmes, Lounge access programmes and financial institutions. Revenue from Lounge services
amounted to 44.93%, 44.65% and 46.14% of its revenue from operations for Fiscals 2025, 2024 and
2023, respectively. The company business may be negatively impacted if the company is unable to retain its existing
Lounge Partners or attract new ones.
- Its business growth may be adversely affected by shifts in the operating models of its airport
operators, which may reduce the company share of profit derived from the relevant concession agreements with
such airport operators.
- The company is subject to extensive regulations, particularly relating to airport and highway operations,
security, food health and safety and environmental matters. Any non-compliance with or changes in
regulations applicable to us may adversely affect its business, results of operations, cash flows and
financial condition.
- Lounge services contributed 44.93%, 44.65% and 46.14% of its revenue from operations for Fiscals
2025, 2024 and 2023, respectively. The company Lounge business may be adversely affected if there is a
decrease in the number of its Lounge Partners' customers, whether due to a decrease in the number
of credit cards and debit cards offering free Lounge access or from cards offering such services
becoming less popular, or, in the converse, if there is a disproportionate increase in the number of
such customers.
- Its concession agreements impose restrictions and requirements on its operations, such as
restrictions on the types of F&B and/or services that the company is obliged to provide, pricing benchmarks,
minimum levels of capital expenditure that the company is required to undertake and the right of airport
operators to relocate or suspend its operations, which could adversely affect the company business operations
and failures to comply could result in termination of the agreements or financial penalties.
- The Udaan Yatri Café provides airport travellers with basic menu items at more affordable prices,
which may draw away some customers from its Travel QSR outlets and reduce sales at such outlets
thereby adversely affecting the company business and financial results.
- There are outstanding legal matters against the Company, certain of its Promoters, one of the company
Subsidiaries, certain of its Directors and one of the members of the company Senior Management. Any adverse
decision in such legal matters may render it or them liable to liabilities or penalties, which may
adversely affect its business, cash flows and reputation.
- The company is subject to extensive regulations relating to food health and safety matters. Any non-compliance
with or changes in such regulations applicable to it may adversely affect the company business, reputation,
results of operations, cash flows and financial condition.
- Surcharges on the price of food and beverages at its Travel QSR outlets and other QSR outlets
operating in airports as compared to outlets outside airports could deter customers from purchasing
from its outlets, which would adversely affect the company business, results of operations, cash flows and
prospects.
- The company receive customer complaints pertaining to its services and products at the company Travel QSRs and
Lounges from time to time. There is no assurance that the company will not receive similar complaints in the
future or that the company will be able to address such customer complaints in a timely manner or at all.
- Conflicts of interest may arise amongst it, certain of the company Associates, Group Companies, Joint
Ventures and business partners that are engaged in similar lines of business as the Company or are
authorised by their constitutional documents to engage in business activities similar to its. Any
conflict of interest which may occur as a result could adversely affect the company business, prospects, results
of operations and financial condition.
- The company has entered into, and will continue to enter into, related party transactions that may involve
conflicts of interest.
- The Travel QSR and Lounge businesses are competitive, and failures to effectively respond to such
competition could adversely affect its business and financial results.
- Its revenue from operations grew 20.87% to Rs.16,877.39 million in Fiscal 2025 from Rs.13,963.22
million in Fiscal 2024, which in turn grew by 30.85% from Rs.10,671.50 million in Fiscal 2023. There
is no assurance that the company will be able to maintain historical growth rates and such rates should not be
taken as indicative of its future growth, profitability or financial results.
- Any disruption in airport access or operations may have an adverse effect on its business, results of
operations and financial condition.
- The company operations are heavily dependent on the travel industry, particularly air travel and to a lesser
extent, highway travel. Any changes in airport travel environments could adversely affect its Travel
QSR and Lounge businesses.
- The operation of its Travel QSRs under partner brands are subject to the terms of the relevant
franchise agreements, sub-concession agreements and trademark licensing agreements, some of
which impose certain restrictions, limitations and other obligations on its operations that could
adversely affect the company ability to grow its business.
- Its Promoters, namely, SSP Asia Pacific Holdings Limited, the Kapur Family Trust, Varun Kapur,
and Karan Kapur have entered into an Inter-se Agreement dated December 9, 2024 which may affect
their voting behaviour in the Company.
- Failures to obtain, maintain or renew licenses, registrations, permits or approvals in relation to the
operation of the company business in a timely manner or at all may adversely affect its business and results
of operations.
- The company may not be able to influence or exert control over its Associates and/or Joint Ventures. As certain
of its strategic partners are the operators of airports in which the company operates, any conflicts of interest or
disputes with such partners could adversely impact its business.
- The company has in the past inadvertently been in non-compliance with certain provisions of the Companies
Act and have filed compounding applications with the Registrar of Companies ("RoC"). The company cannot
assure you that there will be no such non-compliances in the future and that the company will not be subject to
any action including payment of penalty amount.
- Its rent costs, comprising occupancy cost, depreciation of right-of-use assets, and interest expense
on lease liabilities, accounted for 32.26%, 37.63% and 38.47% of total expenses in Fiscals 2025, 2024
and 2023, respectively. Any increase in the rent costs paid to airport and highway operators could
adversely affect its profitability, results of operations and cash flows.
- Adverse order, monetary penalty or ban against card networks and card issuers may impact its
business operations, financial condition, and results of operations.
- The company is dependent on the Lounge access programmes offered by its Lounge Partners to their
customers for access to customers and revenue generation. If the company Lounge Partners cease to offer
Lounge access for free or at all, its business, results of operations and prospectus would be
significantly impacted.
- Its may not be able to successfully develop and roll out new Travel QSRs or Lounges in new and
existing airports.
- Its may not be able to manage the company cost of operating Travel QSRs and Lounges.
- Failures to accurately forecast demand for its products and services may result in it having
insufficient numbers of Travel QSRs and Lounges to cater to growing demand or an excess or
shortage of supplies.
- The company employee benefit expenses amounted to 21.18%, 20.04% and 19.34% of total expenses for Fiscals
2025, 2024 and 2023, respectively. Increases in labour costs could adversely affect its business,
results of operations and financial condition.
- Any negative publicity or developments with respect to it or the company affiliates or business partners,
including airport operators that the company partner with or their affiliates, could adversely impact its
business, reputation, prospects and results of operations.
- Its may requires a significant amount of capital which the company may be unable to obtain on favourable terms
or at all. Its future capital needs may require it to obtain additional loans and borrowings or issue
additional equity or debt securities that may contain restrictive covenants that limit its operations or
our ability to pay dividends, or in the case of an issuance of securities, dilute its Shareholders'
holding.
- Its may fails to detect, deter and prevent all instances of fraud or negligence or other misconduct
committed by the employees or other third parties, which may have a material adverse effect on its
business, results of operations and financial condition.
- The company had employee attrition rates of 58.65%, 61.73% and 66.33% in Fiscals 2025, 2024 and 2023,
respectively. Failures to attract, retain and motivate our employees may adversely affect its business,
results of operations, reputation and prospects.
- The company is dependent on its Key Managerial Personnel, Senior Management and other qualified
personnel and any inability to attract, integrate, motivate and retain such management or personnel
could have a material adverse effect on its business.
- The Company has a large workforce of 5,331 on-roll employees and 191 off-roll employees as of
March 31, 2025, and may be subject to employee disruptions such as strikes, labour unrest or work
stoppages that could have an adverse effect on its business and reputation.
- Its Statutory Auditor have identified certain emphasis of matters in their auditor reports. Further,
the auditors have included certain observations in their reporting under the Companies (Auditor's
Report) Order, 2020.
- The company is reliant on one of its Promoters, SSP, to expand the company Lounge Business within Europe, North
America and Australasia. If such partnership is unsuccessful or there is a material adverse change in
the terms of such arrangement, its business, reputation, financial condition, and results of operations
could be adversely affected.
- The Company will not receive any proceeds from the Offer.
- There have been certain instances of delays in payment of statutory dues by us in the past. Any delay
in payment of statutory dues by it in future, may result in the imposition of penalties and in turn may
have an adverse effect on its business, financial condition, results of operation and cash flows.
- Highway Travel QSRs contributed 1.06%, 1.25% and 0.89% in Fiscals 2025, 2024 and 2023,
respectively. Its may not be able to successfully expand the company Travel QSR business within the highway
segment in India.
- The company cannot assure payment of dividend on the Equity Shares in the future and its ability to pay
dividends in the future will depends on its earnings, financial condition, working capital requirements,
capital expenditures and restrictive covenants of its financing arrangements.
- Real and perceived health concerns arising from food-borne illnesses, quality or other negative foodrelated
incidents could have a material adverse effect on its business, results of operations and
financial condition.
- Any data security incidents could expose it to litigation and damage the company reputation.
- International expansion of its Lounge business is subject to various risks, including uncertain
political and economic conditions, the division of management resources, and the need for significant
upfront capital investment.
- Its inability to recognise and respond to changes in consumer preferences and behaviours could have
an adverse effect on the company business, results of operations and financial condition.
- Its business depends on the continued success and reputation of the company partner brands and in-house
brands, and any negative impact on these brands, or a failure by it or owners of the company partner brands
to protect these brands, may adversely affect its business, results of operations and financial
condition.
- The company has incurred indebtedness of Rs. 2,741.35 million as of May 31, 2025, and are subject to certain
restrictive covenants under the terms of its financing agreements, which may limit the company ability to seek
additional financing or undertake certain business actions. Any inability to comply with repayment
obligations and/or other covenants in its financing agreements could adversely affect the company business
and financial condition.
- The company is dependent on the adequate and timely delivery of quality ingredients, packaging materials and
other necessary supplies. Failure of its suppliers to provide quality ingredients or materials, or
fluctuations in the cost of ingredients, packaging materials or other costs could disrupt its operations
and adversely affect the company profitability.
- Its may undertake investments or strategic partnerships, which may prove to be difficult to integrate
and manage or may not be successful.
- A failures by it or the company brand partners to protect intellectual property rights related to the brands within
its portfolio could adversely affect the company business, results of operations and financial condition.
Defending intellectual property claims may be expensive and could divert valuable resources.
- Its business is subject to seasonal variations that could result in fluctuations in the company results of
operations and cash flows.
- Its may suffer uninsured losses or suffer material losses in excess of insurance coverage which may
adversely affect the company business, results of operations, cash flows and financial condition.
- Its may be subject to claims for personal injuries at the company facilities.
- The company has certain contingent liabilities that have not been provided for in its Restated Consolidated
Financial Information, which if they materialise, may adversely affect the company financial condition.
- The company has used information from the CRISIL Report which its commissioned for industry related data
in this Red Herring Prospectus and any reliance on such information is subject to inherent risks.
- The company could be subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and
non-compliance with such laws can subject it to criminal and/or civil liability and harm its business.
- The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.
- The company does not own the premises in which its Registered Office and Corporate Office are situated.
- Certain of its Promoters, Directors, and Key Managerial Personnel and Senior Management may be
interested in the Company other than in terms of remuneration, perquisites or benefits and
reimbursement of expenses.
Travel Food Services Ltd Peer Comparison
Understand the company’s industry standing
Travel Food Services Ltd
Jubilant FoodWorks Limited
Devyani International Limited
Face Value
1
2
1
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
1687.739
8141.726
4951.052
EPS-Basis
27.58
3.41
0.08
EPS-Diluted
27.58
3.41
0.08
NAV Per Share
79.62
31.87
9.07
P/E-Basic EPS
---
205.81
2097.13
P/E-Diluted EPS
---
---
---
RONW(%)
34.64
10.02
0.84
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
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The IPO opens on 07 Jul 2025 & closes on 09 Jul 2025.
Travel Food Services Limited was originally incorporated as 'Bombay Pure Foods Private Limited' as a Private Company, pursuant to a Certificate of Incorporation dated November 20, 2007, issued by the Registrar of Companies, Maharashtra at Mumbai. Thereafter, the name of the Company was changed from 'Bombay Pure Foods Private Limited' to 'Travel Food Services Private Limited' on March 12, 2009. On the conversion of Company from a Private Limited to a Public Limited, name was changed to Travel Food Services Limited' and a fresh Certificate of Incorporation dated November 22, 2024 was issued by the Registrar of Companies, Central Processing Centre.
The Company operate a travel quick service restaurant (Travel QSR) and a lounge business across airports in India and Malaysia. The Company also has Travel QSR outlets at select highway sites in India. Travel QSR business comprises a range of curated F&B concepts for speed and convenience within travel environments. Travel QSRs are predominantly situated within airports, with select outlets in highway sites. Lounge business comprises designated areas within airport terminals, accessible primarily by first and business class passengers, members of airline loyalty programmes, select credit card and debit card holders and members of other loyalty programmes.
Since the opening of Company's first Travel QSR outlet in 2009, it has built capabilities and processes to effectively execute in, and address the distinct challenges posed by the operationally complex and highly secure airport environment, such as security clearances, stringent rules and restrictions, 24/7 operations, multi-brand and multi- unit concessions, alongside various supply chain and infrastructure constraints.
Through their Travel QSR and Lounge businesses, Company is present in 14 airports in India and 3 airports in Malaysia, as of June 30, 2024. Of the 14 airports in India in which it operate, 13 of them were amongst the 15 largest airports in the country by passenger traffic in 2024, based on air passenger traffic. Such airports include the Delhi airport, Mumbai airport, Bengaluru airport, Hyderabad airport, Kolkata airport, and Chennai airport. The Company so far, has operated the largest network of Travel QSRs outlets and airport Travel QSR outlets in India as of March 31, 2024, with 313 of the 340 operational outlets being situated in airports, and the remaining in highway sites.
The Company so far, has operated the largest network of Travel QSRs outlets and airport Travel QSR outlets in India as of March 31, 2024, with 313 of the 340 operational outlets being situated in airports, and the remaining in highway sites. The Company had 31 Lounges across India and Malaysia, as of June 30, 2024. In addition, a new Lounge was opened in Hong Kong in July 2024.
The Company is planning an Initial Public Offer by raising funds through Offer for Sale aggregating upto Rs 2000 Crore of face value of Re 1 each,
Travel Food Services Ltd IPO will close on 09 Jul 2025.
- Leading Player in the Travel QSR and Lounge sectors in Indian airports.
- Strong expertise in operating and handling the distinct challenges of F&B in the operationally complex and highly secure airport environment.
- Proven and established track record of long-term working relationships with airport operators.
- Diversified portfolio of partner F&B brands franchised from high-quality brand partners and in-house F&B brands.
- Deep understanding of traveller preferences with a focus on delivering a quality customer experience.
- Experienced management team, supported by our synergistic partnerships with SSP and K Hospitality.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | SSP Group PLC | --- | --- | --- | --- |
| 2 | SSP Group Holdings Ltd | --- | --- | --- | --- |
| 3 | SSP Financing Ltd | --- | --- | --- | --- |
| 4 | SSP Asia Pacific Holdings Ltd | 64522922 | 49 | 64522922 | 49 |
| 5 | Kapur Family Trust | 67156562 | 51 | 48974744 | 37.19 |
| 6 | Varun Kapur | --- | --- | --- | --- |
| 7 | Karan Kapur | --- | --- | --- | --- |
- Revenue from its Travel QSRs and Lounges situated in airports contributed 95.55%, 95.88% and 95.77% of the company revenue from operations for Fiscals 2025, 2024 and 2023, respectively. The company is highly dependent on its concession agreements for the company business operations and inability to renew existing concession agreements or any adverse changes in the terms therein, early termination, or any inability to obtain new concessions could adversely affect its business and results of operations.
- The Travel QSRs and Lounges at the top 5 airports contributed 85.94%, 88.36% and 90.29% of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively. Termination of the company concession agreements in relation to or a decrease in passenger traffic in such airports could have a significant impact on its revenue.
- The company depends on its relationship with our brand partners to franchise their brands, with revenue from brand partners accounting for 54.37%, 54.44% and 54.06% of its revenue from Travel QSR for Fiscals 2025, 2024 and 2023, respectively. Failures to attract new brand partners or maintain or develop existing ones could adversely affect its business, results of operations, financial condition and prospects.
- The success of its Lounge business is dependent on the company long-term relationship with its Lounge Partners, comprising domestic and international airlines, card issuers and networks, loyalty partner programmes, Lounge access programmes and financial institutions. Revenue from Lounge services amounted to 44.93%, 44.65% and 46.14% of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively. The company business may be negatively impacted if the company is unable to retain its existing Lounge Partners or attract new ones.
- Its business growth may be adversely affected by shifts in the operating models of its airport operators, which may reduce the company share of profit derived from the relevant concession agreements with such airport operators.
- The company is subject to extensive regulations, particularly relating to airport and highway operations, security, food health and safety and environmental matters. Any non-compliance with or changes in regulations applicable to us may adversely affect its business, results of operations, cash flows and financial condition.
- Lounge services contributed 44.93%, 44.65% and 46.14% of its revenue from operations for Fiscals 2025, 2024 and 2023, respectively. The company Lounge business may be adversely affected if there is a decrease in the number of its Lounge Partners' customers, whether due to a decrease in the number of credit cards and debit cards offering free Lounge access or from cards offering such services becoming less popular, or, in the converse, if there is a disproportionate increase in the number of such customers.
- Its concession agreements impose restrictions and requirements on its operations, such as restrictions on the types of F&B and/or services that the company is obliged to provide, pricing benchmarks, minimum levels of capital expenditure that the company is required to undertake and the right of airport operators to relocate or suspend its operations, which could adversely affect the company business operations and failures to comply could result in termination of the agreements or financial penalties.
- The Udaan Yatri Café provides airport travellers with basic menu items at more affordable prices, which may draw away some customers from its Travel QSR outlets and reduce sales at such outlets thereby adversely affecting the company business and financial results.
- There are outstanding legal matters against the Company, certain of its Promoters, one of the company Subsidiaries, certain of its Directors and one of the members of the company Senior Management. Any adverse decision in such legal matters may render it or them liable to liabilities or penalties, which may adversely affect its business, cash flows and reputation.
- The company is subject to extensive regulations relating to food health and safety matters. Any non-compliance with or changes in such regulations applicable to it may adversely affect the company business, reputation, results of operations, cash flows and financial condition.
- Surcharges on the price of food and beverages at its Travel QSR outlets and other QSR outlets operating in airports as compared to outlets outside airports could deter customers from purchasing from its outlets, which would adversely affect the company business, results of operations, cash flows and prospects.
- The company receive customer complaints pertaining to its services and products at the company Travel QSRs and Lounges from time to time. There is no assurance that the company will not receive similar complaints in the future or that the company will be able to address such customer complaints in a timely manner or at all.
- Conflicts of interest may arise amongst it, certain of the company Associates, Group Companies, Joint Ventures and business partners that are engaged in similar lines of business as the Company or are authorised by their constitutional documents to engage in business activities similar to its. Any conflict of interest which may occur as a result could adversely affect the company business, prospects, results of operations and financial condition.
- The company has entered into, and will continue to enter into, related party transactions that may involve conflicts of interest.
- The Travel QSR and Lounge businesses are competitive, and failures to effectively respond to such competition could adversely affect its business and financial results.
- Its revenue from operations grew 20.87% to Rs.16,877.39 million in Fiscal 2025 from Rs.13,963.22 million in Fiscal 2024, which in turn grew by 30.85% from Rs.10,671.50 million in Fiscal 2023. There is no assurance that the company will be able to maintain historical growth rates and such rates should not be taken as indicative of its future growth, profitability or financial results.
- Any disruption in airport access or operations may have an adverse effect on its business, results of operations and financial condition.
- The company operations are heavily dependent on the travel industry, particularly air travel and to a lesser extent, highway travel. Any changes in airport travel environments could adversely affect its Travel QSR and Lounge businesses.
- The operation of its Travel QSRs under partner brands are subject to the terms of the relevant franchise agreements, sub-concession agreements and trademark licensing agreements, some of which impose certain restrictions, limitations and other obligations on its operations that could adversely affect the company ability to grow its business.
- Its Promoters, namely, SSP Asia Pacific Holdings Limited, the Kapur Family Trust, Varun Kapur, and Karan Kapur have entered into an Inter-se Agreement dated December 9, 2024 which may affect their voting behaviour in the Company.
- Failures to obtain, maintain or renew licenses, registrations, permits or approvals in relation to the operation of the company business in a timely manner or at all may adversely affect its business and results of operations.
- The company may not be able to influence or exert control over its Associates and/or Joint Ventures. As certain of its strategic partners are the operators of airports in which the company operates, any conflicts of interest or disputes with such partners could adversely impact its business.
- The company has in the past inadvertently been in non-compliance with certain provisions of the Companies Act and have filed compounding applications with the Registrar of Companies ("RoC"). The company cannot assure you that there will be no such non-compliances in the future and that the company will not be subject to any action including payment of penalty amount.
- Its rent costs, comprising occupancy cost, depreciation of right-of-use assets, and interest expense on lease liabilities, accounted for 32.26%, 37.63% and 38.47% of total expenses in Fiscals 2025, 2024 and 2023, respectively. Any increase in the rent costs paid to airport and highway operators could adversely affect its profitability, results of operations and cash flows.
- Adverse order, monetary penalty or ban against card networks and card issuers may impact its business operations, financial condition, and results of operations.
- The company is dependent on the Lounge access programmes offered by its Lounge Partners to their customers for access to customers and revenue generation. If the company Lounge Partners cease to offer Lounge access for free or at all, its business, results of operations and prospectus would be significantly impacted.
- Its may not be able to successfully develop and roll out new Travel QSRs or Lounges in new and existing airports.
- Its may not be able to manage the company cost of operating Travel QSRs and Lounges.
- Failures to accurately forecast demand for its products and services may result in it having insufficient numbers of Travel QSRs and Lounges to cater to growing demand or an excess or shortage of supplies.
- The company employee benefit expenses amounted to 21.18%, 20.04% and 19.34% of total expenses for Fiscals 2025, 2024 and 2023, respectively. Increases in labour costs could adversely affect its business, results of operations and financial condition.
- Any negative publicity or developments with respect to it or the company affiliates or business partners, including airport operators that the company partner with or their affiliates, could adversely impact its business, reputation, prospects and results of operations.
- Its may requires a significant amount of capital which the company may be unable to obtain on favourable terms or at all. Its future capital needs may require it to obtain additional loans and borrowings or issue additional equity or debt securities that may contain restrictive covenants that limit its operations or our ability to pay dividends, or in the case of an issuance of securities, dilute its Shareholders' holding.
- Its may fails to detect, deter and prevent all instances of fraud or negligence or other misconduct committed by the employees or other third parties, which may have a material adverse effect on its business, results of operations and financial condition.
- The company had employee attrition rates of 58.65%, 61.73% and 66.33% in Fiscals 2025, 2024 and 2023, respectively. Failures to attract, retain and motivate our employees may adversely affect its business, results of operations, reputation and prospects.
- The company is dependent on its Key Managerial Personnel, Senior Management and other qualified personnel and any inability to attract, integrate, motivate and retain such management or personnel could have a material adverse effect on its business.
- The Company has a large workforce of 5,331 on-roll employees and 191 off-roll employees as of March 31, 2025, and may be subject to employee disruptions such as strikes, labour unrest or work stoppages that could have an adverse effect on its business and reputation.
- Its Statutory Auditor have identified certain emphasis of matters in their auditor reports. Further, the auditors have included certain observations in their reporting under the Companies (Auditor's Report) Order, 2020.
- The company is reliant on one of its Promoters, SSP, to expand the company Lounge Business within Europe, North America and Australasia. If such partnership is unsuccessful or there is a material adverse change in the terms of such arrangement, its business, reputation, financial condition, and results of operations could be adversely affected.
- The Company will not receive any proceeds from the Offer.
- There have been certain instances of delays in payment of statutory dues by us in the past. Any delay in payment of statutory dues by it in future, may result in the imposition of penalties and in turn may have an adverse effect on its business, financial condition, results of operation and cash flows.
- Highway Travel QSRs contributed 1.06%, 1.25% and 0.89% in Fiscals 2025, 2024 and 2023, respectively. Its may not be able to successfully expand the company Travel QSR business within the highway segment in India.
- The company cannot assure payment of dividend on the Equity Shares in the future and its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- Real and perceived health concerns arising from food-borne illnesses, quality or other negative foodrelated incidents could have a material adverse effect on its business, results of operations and financial condition.
- Any data security incidents could expose it to litigation and damage the company reputation.
- International expansion of its Lounge business is subject to various risks, including uncertain political and economic conditions, the division of management resources, and the need for significant upfront capital investment.
- Its inability to recognise and respond to changes in consumer preferences and behaviours could have an adverse effect on the company business, results of operations and financial condition.
- Its business depends on the continued success and reputation of the company partner brands and in-house brands, and any negative impact on these brands, or a failure by it or owners of the company partner brands to protect these brands, may adversely affect its business, results of operations and financial condition.
- The company has incurred indebtedness of Rs. 2,741.35 million as of May 31, 2025, and are subject to certain restrictive covenants under the terms of its financing agreements, which may limit the company ability to seek additional financing or undertake certain business actions. Any inability to comply with repayment obligations and/or other covenants in its financing agreements could adversely affect the company business and financial condition.
- The company is dependent on the adequate and timely delivery of quality ingredients, packaging materials and other necessary supplies. Failure of its suppliers to provide quality ingredients or materials, or fluctuations in the cost of ingredients, packaging materials or other costs could disrupt its operations and adversely affect the company profitability.
- Its may undertake investments or strategic partnerships, which may prove to be difficult to integrate and manage or may not be successful.
- A failures by it or the company brand partners to protect intellectual property rights related to the brands within its portfolio could adversely affect the company business, results of operations and financial condition. Defending intellectual property claims may be expensive and could divert valuable resources.
- Its business is subject to seasonal variations that could result in fluctuations in the company results of operations and cash flows.
- Its may suffer uninsured losses or suffer material losses in excess of insurance coverage which may adversely affect the company business, results of operations, cash flows and financial condition.
- Its may be subject to claims for personal injuries at the company facilities.
- The company has certain contingent liabilities that have not been provided for in its Restated Consolidated Financial Information, which if they materialise, may adversely affect the company financial condition.
- The company has used information from the CRISIL Report which its commissioned for industry related data in this Red Herring Prospectus and any reliance on such information is subject to inherent risks.
- The company could be subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and non-compliance with such laws can subject it to criminal and/or civil liability and harm its business.
- The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.
- The company does not own the premises in which its Registered Office and Corporate Office are situated.
- Certain of its Promoters, Directors, and Key Managerial Personnel and Senior Management may be interested in the Company other than in terms of remuneration, perquisites or benefits and reimbursement of expenses.
The Issue type of Travel Food Services Ltd is Book Building.
The minimum application for shares of Travel Food Services Ltd is 13.
The total shares issue of Travel Food Services Ltd is 18181818.
Initial public offer of up to [*] equity shares bearing face value Re.1 each ("Equity Shares") of travel food services limited ("The Company" or the "Issuer") for cash at a price of Rs.[*] per equity share (Including a Premium of Rs.[*] per Equity Share) ("Offer Price") aggregating up to Rs.2000.00 crores through an offer for sale ("The Offer") of up to [*] equity shares bearing face value of Re.1 each aggregating up to Rs. 2000.00 crores by the kapur family trust ("Promoter Selling Shareholder") (The "Offered Shares").
The offer includes a reservation of up to [*] equity shares bearing face value Re.1 each, aggregating up to Rs. [*] crores (Constituting up to 5% of the post-offer paid up equity share capital, for subscription by eligible employees ("Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer shall constitute [*]% and [*]% of the post-offer paid-up equity share capital of the company.
Price Band: Rs. 1045 to Rs. 1100 per equity share of face value of Rs. 10 each.
The floor price is 1045 times of the face value and the cap price is 1100 times of the face value.
Bidscan be made for the minimum of 13 equity shares and in multiples of 13 equity shares thereafter.
A discount of Rs. 104 per equity shares is being offered to eligible employees bidding in the employee reservation portion.
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