Travel Food Services IPO subscribed 27% by day 3. Check price band, GMP trends, subscription status, lot size, and listing date. Know if you should invest.
Travel Food Services IPO Subscribed 27% on Day 3; GMP, Key Dates, and All You Need to Know
Mumbai | July 9, 2025 — The initial public offering (IPO) of Travel Food Services Ltd (TFS) saw a tepid response on day 3 of bidding, with the issue being subscribed only 27% by the end of trading hours. Despite operating in a high-growth sector—providing food and beverage services across airports and transit hubs—investor appetite appears to be cautious, possibly due to valuation concerns and ongoing market volatility.
According to data from stock exchanges, the retail portion of the IPO was subscribed 41%, while non-institutional investors (NIIs) picked up 12% of their allotted quota. The Qualified Institutional Buyers (QIBs) category saw minimal traction so far, at under 5%, although this segment typically picks up pace on the final bidding day.
The IPO, which opened on July 7, 2025, will close on July 10, 2025, and comprises a fresh issue of ₹400 crore and an offer-for-sale (OFS) of ₹600 crore by existing shareholders, including promoters and private equity investors. The price band has been set at ₹192–203 per share, with a lot size of 73 shares per application.
Market watchers have noted that the grey market premium (GMP) for TFS shares is currently hovering around ₹9–₹11 per share, indicating mild listing gains, though well below expectations for a hospitality-sector IPO with a pan-India footprint. Analysts say that while the brand has strong visibility and presence in over 20 airports, the company’s profitability margins remain thin due to high operating costs, rental obligations, and seasonal passenger traffic variations.
Travel Food Services is a leading operator in India’s travel retail and airport food & beverage market, offering branded dining and quick-service options across airports, railways, and highways. It operates brands like Cafeccino, Dilli Streat, The Coffee Bean & Tea Leaf, and also partners with global names like KFC and Domino’s under franchise or joint venture models. The company plans to use the fresh issue proceeds to repay debt, open new outlets, and upgrade existing facilities across key locations.
Brokerages are divided in their recommendations. Some have given a ‘Subscribe with Caution’ tag citing modest revenue growth and limited profitability, while others recommend avoiding the issue for now until there’s clarity on post-listing valuations and competitive positioning. A few institutional research desks also flagged concerns around the dependence on airport footfall, which is susceptible to global travel trends and economic downturns.
TFS had filed its DRHP (Draft Red Herring Prospectus) with SEBI earlier this year and received approval to float its IPO last month. The anchor book was partially filled on July 6, with participation from a few domestic mutual funds and alternative investment firms.
With just one day of bidding left, all eyes are now on how institutional investors respond on Day 4 and whether the IPO crosses the full subscription mark. The basis of allotment is expected on July 11, and the listing date is tentatively scheduled for July 15, 2025, on both NSE and BSE.
Investors are advised to stay updated with official exchange data and monitor GMP trends closely before making last-minute decisions.
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