₹10,000 Crore Travel Food Services Shares Hit Market as Lock-in Expires
Overview
Travel Food Services Ltd. will see a substantial portion of its shares, valued at nearly ₹10,029 crore, become available for trading today following the expiry of its six-month lock-in period. This event unlocks 66% of the company's equity, potentially impacting market liquidity and share price dynamics for the airport travel QSR and lounge operator.
Travel Food Services Ltd. shares are in focus today as its six-month shareholder lock-in period concludes. Approximately 87.2 million shares, representing 66% of the company's outstanding equity, will become eligible for trading. Nuvama Alternative and Quantitative Research noted the significant release of shares.
Massive Share Unlocking
The shares coming out of lock-in are valued at nearly ₹10,029 crore, based on Friday's closing price of ₹1,149.70. The stock has risen approximately 5% from its initial public offering price of ₹1,100. The expiry of lock-in periods is a standard event following IPOs, signaling a transition to full market liquidity for pre-listing investors.
Company Overview and Performance
Travel Food Services is a prominent player in the Indian airport travel Quick Service Restaurant (QSR) and lounge industry. As of FY25, the company commanded a 26% market share in airport travel QSR and 45% in airport lounges by revenue. TFS operated 442 Travel QSRs across India and Malaysia and 37 Lounges in India, Malaysia, and Hong Kong as of March 2025.
The company demonstrated strong financial performance in FY25, with a 27.4% year-on-year increase in profit to ₹379.7 crore. Revenue grew 21% year-on-year to ₹1,687.7 crore. This growth underscores the company's expanding operational footprint and market position.
Market Implications
The large volume of shares becoming available could introduce selling pressure on Travel Food Services' stock in the short term. Investors will be monitoring trading activity closely to gauge demand and the extent to which existing shareholders decide to liquidate their positions. This event primarily affects the liquidity of TFS shares rather than signaling a change in the company's operational fundamentals.
