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The group acquired an initial stake in TFS in 2016 and currently holds 49% of the company for which it paid a net consideration of £57.9 million. Further, SSP plans to increase its stake by another 1.01%, taking the total holding to 50.01%.
Analysts believe that the India listing is extremely positive for the company, as it should provide additional capital to help fuel expansion in a fast-growing region.
“Given the track record, favorable demographics and continued investment in airport infrastructure, we would expect Travel Food Services to command an attractive rating, noting the premium valuation of comparable listed food service stocks in India,” wrote Shore Capital Group in an investor note.
The proposed initial public offering (IPO) is entirely an offer-for-sale (OFS) where the other promoter entity, Kapur Family Trust, will be offloading shares worth ₹2,000 crore. The Kapur Family Trust operates under the flagship brand K Hospitality, which oversees and invests in several hospitality and food service businesses, including Travel Food Services. As per the draft red herring prospectus filed with the SEBI, Kapur Family Trust held a 51% stake in the company.
In FY24, the net profit of TFS increased by 18% to ₹288 crore on the back of a 31% rise in revenue. The company clocked a net revenue of ₹1396 crore during the year. For the three months ended June 30, 2024, the revenue from operations stood at ₹410 crore, whereas net profit for the quarter stood at ₹55 crore.
Based on its FY24 revenue, the company is one of the leading players in the fast-growing airport travel quick-service restaurant and lounge sectors in airports in India.
(Edited by : Ajay Vaishnav)
