NEW DELHI, Dec 11: Travel Food Services, which runs travel quick-service restaurants and lounges at airports in India and Malaysia, has submitted draft documents to the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth Rs 2,000 crore.
The proposed IPO is fully an offer-for-sale (OFS) of shares valued at Rs 2,000 crore by the promoter Kapur Family Trust. The offer includes allocations for eligible employees, as detailed in the draft red herring prospectus (DRHP) submitted on Tuesday.
Since the IPO is entirely an OFS, the company will not receive any capital from the offering; instead, the proceeds will go to the seller of the shares.
Travel Food Services started its first travel quick-service restaurant (QSR) in 2009 and is backed by SSP Group plc (SSP) and its affiliates, including SSP Group Holdings Ltd, SSP Financing Ltd, and SSP Asia Pacific Holdings Ltd, along with the Kapur Family Trust, Varun Kapur, and Karan Kapur.
SSP, a company listed on the London Stock Exchange as part of the FTSE 250, is acknowledged as a global leader in the Travel Food & Beverage (F&B) industry in terms of revenue for 2024, according to a CRISIL report.
The Kapur Family Trust operates under the prominent brand K Hospitality, which manages and invests in various hospitality and food service ventures, including Travel Food Services (collectively termed K Hospitality).
Headquartered in Mumbai, Travel Food Services offers a wide range of food and beverage (F&B) options designed for travellers, featuring fast food, cafés, bakeries, food courts, and bars, predominantly found in airports and select highway locations to meet the demands of on-the-go customers.
As of June 30, 2024, the company operates across 14 airports in India, including major hubs like Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata, and Chennai, as well as three airports in Malaysia.
Travel Food Services boasts a robust portfolio of 117 partner and in-house brands, operating 397 Travel QSR outlets across India and Malaysia as of June 2024.
The bulk of its QSR outlets are situated within airports, with some located along highways. The company also manages 31 lounges in India and Malaysia and expanded internationally with a new lounge launch in Hong Kong in July this year.
As of June 30, 2024, Travel Food Services presents a varied portfolio of partner brands, encompassing both international and regional Indian brands along with its own in-house brands.
Its international brand lineup features well-known names like 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 include popular chains like Third Wave Coffee, Hatti Kaapi, Sangeetha, Bikanervala, Wow Momo, The Irish House, JOSHH, Adyar Ananda Bhavan, and Bombay Brasserie.
Travel Food Services has also established its own in-house brands, which include Cafécino, Dilli Streat, idli.com, and Curry Kitchen.
On the financial side, the company’s revenue from operations rose by 31% to Rs 1,396.32 crore in fiscal year 2024, compared to Rs 1,067.15 crore in fiscal year 2023.
Profit after tax grew by 18.6% to Rs 298 crore in fiscal year 2024 from Rs 251 crore in fiscal year 2023.
For the quarter ending June 30, 2024, revenue from operations reached Rs 409.86 crore, and profit after tax was reported 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 serving as the book-running lead managers for the issue.
The equity shares are intended to be listed on the National Stock Exchange and BSE. (PTI)
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