-KH News Desk
Travel Food Services (TFS), a prominent player in India’s airport food and beverage (F&B) and lounge sector, has successfully completed its Initial Public Offering (IPO), raising a significant $234 million. This achievement positions it as India’s ninth-largest IPO of the current year. The offering witnessed strong backing from institutional investors, whose bids were 5.23 times the shares allocated for them. In contrast, retail investors showed more caution, with subscriptions at 0.44 times, influenced by uncertainties surrounding a potential US trade deal.
TFS, a collaborative venture between UK-based SSP Group and India’s K Hospitality Corp, boasts an impressive portfolio. It operates well-known restaurant chains such as Jamie Oliver’s Pizzeria, Krispy Kreme, and KFC across 18 airports spanning India, Malaysia, and Hong Kong. Additionally, the company manages 37 airport lounges, catering to a diverse range of travelers.
The successful IPO highlights the robust expansion of India’s aviation sector, which is the world’s third-largest. As disposable incomes rise, there’s a noticeable uptick in passenger spending on F&B and premium services like lounges. This trend is expected to continue, with ratings agency CRISIL forecasting annual growth of 17-19% for India’s airport quick-service restaurant (QSR) sector to reach ₹170-180 billion by fiscal year 2034. The lounge sector is anticipated to grow even faster, at up to 24% annually, to reach ₹165 billion.
The IPO, which was an offer for sale, primarily involved the Kapur Family Trust offloading a stake valued at ₹20 billion. Prior to the public offering, TFS allotted shares worth nearly ₹6 billion to large institutional buyers, including sovereign wealth funds ADIA and Norges. This significant capital infusion is set to further bolster TFS’s operations and expansion plans within the thriving Indian travel and hospitality landscape.
