Travel Food Services IPO sees 10% booking on Day 1; GMP, review, details here

The IPO of Travel Food Services opened on a subdued note on Monday, July 7, with only 10% subscription by the end of the first day. Retail investors showed the most interest, while overall demand remained tepid. The company, which operates quick-service restaurants (QSRs) and lounges in airports across India, Malaysia, and Hong Kong, as well as highway outlets, boasts a portfolio of 127 F&B brands.

The ₹2,000 crore IPO, entirely an offer for sale (OFS) of 1.82 crore shares, closes on July 9. The price band is set at ₹1,045–₹1,100 per share, with a minimum lot size of 13 shares. Employees get a ₹104 discount on up to 40,382 reserved shares.

Grey market premium (GMP) dropped to ₹16 from ₹30 a day earlier, suggesting a potential listing price of ₹1,116—just 1.45% above the upper price band. Analysts caution against relying on GMP, advising investors to assess fundamentals and risk appetite.

Kotak Mahindra Capital, HSBC Securities, ICICI Securities, and B&K Securities are managing the IPO, with Link Intime as the registrar. Allotment is expected by July 10, with listing on July 14.

Arihant Capital gave a 'Neutral' rating, citing the company’s strong airport QSR presence and growth potential in India’s underpenetrated air travel market. However, at 38.15x FY25 P/E, the valuation appears steep, prompting cautious investor sentiment.