FabHotels parent Travelstack Tech gets SEBI nod for IPO, plans to raise Rs 250 crore

Travelstack Tech may hit the bourses soon, as the company has received the green signal from market regulator, SEBI to go ahead with its public offering. The parent company of FabHotels aims to raise Rs 250 crore via the issuance of fresh equity, while the promoters and investors could offload 2.68 crore equity shares via the offer for sale route.

Here are three key details about the IPO:

1. Travelstack IPO: Offer size and BRLMs

The offer comprises the issuance of fresh equity worth Rs 250 crore, while the promoters will offload 2.68 crore equity shares of face value Re 1 each through the OFS route.

The travel tech company filed its DRHP with SEBI on December 17, 2025.

Motilal Oswal Investment Advisors, IIFL Capital Services, and Nuvama Wealth Management will handle the company’s IPO, while MUFG Intime India is the registrar to the issue.

2. Travelstack IPO: Issue objectives

Travelstack will deploy the fresh proceeds raised towards funding its capital requirements, repaying its debts, and its general corporate purposes.

Of the total Rs 250 crore, Rs 135 crore will be utilized for funding the company’s working capital requirements, which include managing its day-to-day operations and supporting its business growth.

While Rs 45 crore will be utilised towards repayment of certain borrowings availed by the company, the remaining capital will be deployed towards meeting its general corporate purposes. These include strategic initiatives, investment in technology development, strengthening of cloud infrastructure, etc.

3. Travelstack IPO: Key risks

Being engaged in the hospitality sector, the company is vulnerable to various risks. These include a reduced corporate travel market or a downturn in demand for hotels. Also, the ability to function with the company’s Travelplus platform and the ability to retain clients may affect the company’s financial performance.

The company has incurred net losses over the past three financial years and is engaged in a variety of related-party transactions, which pose risks to the company’s financials.

Risk of seasonality, fraudulent actions by hotel suppliers, inability to pay outstanding borrowings, and involvement in certain legal and regulatory proceedings are also some risk factors to be monitored.

Conclusion

The IPO lineup for 2026 has been relatively muted thus far after a string start as a result of the ongoing geopolitical uncertainty. All eyes are on the forthcoming IPOs planned.