Mumbai: Travel Food Services, a leading quick-service restaurant (QSR) and airport lounge provider, is set to debut on the stock exchanges on Monday, July 14. The company's IPO was open for subscription from July 7 to July 9 and received an overwhelming response, particularly from Qualified Institutional Buyers (QIBs), who subscribed 7.70 times their allotted quota.
Non-Institutional Investors (NIIs) subscribed 1.58 times, while retail investors took up 69 percent of their reserved portion. According to BSE data, the IPO was overall subscribed 2.88 times by the end of the third day.
Offer for Sale Worth Rs 2,000 Crore
The Travel Food Services IPO was a pure offer for sale (OFS) amounting to Rs 2,000 crore, with the Kapur Family Trust offloading its stake. This means the company will not receive any funds from the issue; all proceeds will go to the selling shareholders.
Travel Food Services launched its first travel QSR outlet in 2009. As of June 30, 2024, the company operates 397 travel QSR outlets across India and Malaysia, with a mix of 117 partner and owned brands.
Grey Market Premium Signals a Mild Upside
According to Investorgain.com, the Grey Market Premium (GMP) for Travel Food Services IPO currently stands at Rs 40 per share, suggesting that the stock may list around Rs 1,140, which is 3.64 percent higher than the issue price of Rs 1,100.
The IPO had a price band of Rs 1,045 to Rs 1,100. However, analysts noted a decline in GMP over the past 16 sessions, with values fluctuating between Re 0 and Rs 92. This volatility raises some uncertainty about listing day performance.
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