Travel Food Services IPO: The initial public offering (IPO) of Travel Food Services, which opened on July 7, received a muted response from investors on the first day of bidding, with the issue subscribed only 10 per cent so far. According to data from the BSE, the IPO received bids for 13,90,766 shares against 1,34,12,842 shares on offer.
Category-wise data showed that the employee segment recorded the highest interest, with a 37 per cent subscription — 15,561 shares bid against 42,507 shares reserved. The retail investor segment was subscribed 14 per cent, with bids for 9,37,508 shares out of 66,85,168 shares allocated to them.
The non-institutional investors (NIIs or HNIs) segment subscribed only 6 per cent, with 1,80,973 shares bid against 28,65,072 shares available for the category.
Meanwhile, the qualified institutional buyers (QIBs) applied bid for 2,56,724 shares or 7 per cent against 38,20,095 shares.
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Travel Food Services IPO: Anchor investor details
Before the IPO launch, the company had raised nearly Rs 600 crore from anchor investors.
Travel Food Services IPO details
The IPO is being launched through a book-building process and consists entirely of an offer for sale (OFS) of 18.2 million equity shares by the Kapur Family Trust, the promoter and selling shareholder. There is no fresh issue of shares in this offering.
The price band for the IPO is set 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 (Rs 14,300) and up to a maximum of 13 lots (Rs 1,85,900).
Should You Subscribe to the IPO?
Zee Business Managing Editor Anil Singhvi has advised investors to subscribe to the IPO with a long-term investment horizon of one to two years.
Analysts at domestic brokerages also have a positive outlook on the IPO.
ALSO READ | Travel Food Services IPO Opens July 7: Price band set at Rs 1,045–1,100; should you subscribe?
SBI Securities has recommended subscribing to the IPO at the cut-off price. The brokerage noted that at the upper price band (Rs 1,100), the stock is valued at 39.9 times its estimated FY25 earnings per share (EPS), a valuation considered lower than other listed QSR companies.
Canara Bank Securities has also issued a ‘subscribe’ rating, suggesting potential listing gains as well as for long-term investment. In its IPO analysis, the brokerage highlighted the company’s competitive position in the airport-focused QSR and lounge market, supported by global partnerships, brand strength, and a broad presence across major high-traffic travel hubs.
(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)
