Travel Food Services files draft papers with Sebi for Rs 2,000-cr IPO

New Delhi: Travel Food Services, operating a travel quick-service restaurant and a lounge business across airports in India and Malaysia, has filed draft papers with markets regulator Sebi to float a Rs 2,000 crore initial public offering (IPO).

The proposed IPO is entirely an offer-for-sale (OFS) of shares worth Rs 2,000 crore by promoter Kapur Family Trust. The offer includes reservations for subscriptions by eligible employees, according to the draft red herring prospectus (DRHP) filed on Tuesday.

Since the IPO is entirely an OFS, the company will not receive any funds from the issue and the proceeds will go to the selling shareholder.

Travel Food Services launched its first travel quick-service restaurant (QSR) outlet in 2009. It is promoted by SSP Group plc (SSP) and its affiliates SSP Group Holdings Ltd, SSP Financing Ltd, SSP Asia Pacific Holdings Ltd along with the Kapur Family Trust, Varun Kapur and Karan Kapur.

SSP, an FTSE 250 company listed on the London Stock Exchange, is recognised as a global leader in the Travel Food & Beverage (F&B) sector based on revenue in 2024, as per the CRISIL report.

The Kapur Family Trust operates under the flagship brand K Hospitality, which oversees and invests in several hospitality and food service businesses, including Travel Food Services (collectively referred to as K Hospitality).

Headquartered in Mumbai, Travel Food Services' portfolio features a diverse selection of food and beverage (F&B) concepts tailored for travellers, including fast food, cafes, bakeries, food courts and bars, primarily located in airports and some highway locations to cater to the needs of fast-moving customers.

The company's presence spans 14 airports in India, including major hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai, as well as three airports in Malaysia, as of June 30, 2024.

With a robust portfolio of 117 partner and in-house brands, the company operates 397 Travel QSR outlets across India and Malaysia, as of June 2024.

Its QSR outlets are predominantly located within airports, with select locations along highways. It also operated 31 lounges in India and Malaysia as of the same date and expanded internationally by opening a new lounge in Hong Kong in July this year.

As of June 30, 2024, Travel Food Services boasts a diverse portfolio of partner brands, comprising both international and regional Indian brands, alongside its in-house brands.

The international brands include renowned names such as KFC, Pizza Hut, Wagamama, Coffee Bean & Tea Leaf, Jamie Oliver's Pizzeria, Brioche Doree, Subway, and Krispy Kreme. The regional Indian brands in its network feature popular chains such as Third Wave Coffee, Hatti Kaapi, Sangeetha, Bikanervala, Wow Momo, The Irish House, JOSHH, Adyar Ananda Bhavan and Bombay Brasserie.

Additionally, Travel Food Services has developed its own in-house brands, including Caféccino, Dilli Streat, idli.com and Curry Kitchen.

On the financial front, revenue from operations surged by 31 per cent to Rs 1,396.32 crore in fiscal 2024 from Rs 1,067.15 crore in fiscal 2023.

Profit after tax increased by 18.6 per cent to Rs 298 crore in fiscal 2024 from Rs 251 crore in fiscal 2023.

For the three months ended June 30, 2024, revenue from operations stood at Rs 409.86 crore and profit after tax stood at Rs 59.55 crore.

Kotak Mahindra Capital Company, HSBC Securities and Capital Markets (India) Pvt Ltd, ICICI Securities and Batlivala & Karani Securities India are the book-running lead managers to the issue.

The equity shares are proposed to be listed on the National Stock Exchange and BSE.