The price band of the Travel Food Services IPO, which aims to raise Rs 2,000 crore, has been fixed in the range of Rs 1,045 to Rs 1,100. Should You Subscribe? Check GMP, Price, Lot Size, Review, Subscription Status

Travel Food Services IPO Gets 11% On Day 1: Should You Subscribe? Check GMP, Price, Lot Size, Review

Travel Food Services IPO: A Delicious Investment Opportunity?

Travel Food Services Ltd. (TFS) launched its Initial Public Offering (IPO) on July 7th, 2025, aiming to raise a substantial Rs 2,000 crore. With a price band set between Rs 1,045 and Rs 1,100, the question on everyone's mind is: should you invest?

Day 1 Performance: The IPO opened with a relatively modest 0.11 times subscription, receiving bids for 13,98,852 shares against 1,27,42,199 shares on offer. Retail and NII participation stood at 0.15x and 0.07x, respectively, with the QIB category also at 0.07x. This initial response may raise some eyebrows.

Grey Market Premium (GMP): Currently, the GMP sits low at 1.45%, suggesting a potentially flat listing or only modest gains. This contrasts with the unlisted share price of Rs 1,116, which is Rs 16 above the upper IPO price. Remember, GMP is based on market sentiment and can fluctuate.

Key IPO Details:

Price Band: Rs 1,045 - Rs 1,100
Lot Size: Minimum 13 shares (Rs 13,585 minimum investment for retail)
Allotment Date: July 10, 2025
Listing Date: July 14, 2025 (BSE and NSE)

Should You Subscribe? Expert Opinions:

Several brokerage firms recommend subscribing to the TFS IPO, primarily for long-term growth. Their positive assessments highlight:

Strong Market Position: TFS dominates airport-focused food services in India and Malaysia.
Growth Potential: The company is well-positioned to benefit from India's expanding aviation sector.
Attractive Valuation: The IPO is priced competitively compared to other QSR companies.
Diversified Portfolio: TFS boasts a mix of in-house and international brands (e.g., KFC, Pizza Hut, Wagamama) and regional Indian favorites.
Operational Efficiency and Strong Balance Sheet: Brokers emphasize TFS's superior margins and return ratios.

However, the low initial subscription and modest GMP warrant careful consideration. Investors should conduct thorough due diligence before making a decision.

Company Overview:

Founded in 2007, TFS operates 397 QSRs and airport lounges across 17 airports. Its diverse portfolio includes 117 in-house and partner brands. The IPO is an Offer for Sale (OFS), with proceeds going to the selling shareholder (Kapur Family Trust).

Note: This information is for educational purposes only and does not constitute financial advice. Always consult with a financial advisor before making any investment decisions.