Travel Food Services, an Indian airport restaurant and lounge operator, got listed at Rs 1,125 on the National Stock Exchange, a premium of a mere per cent from the bidding price. It listed at Rs 1,126.20 on the BSE, a premium of 2.4%.
Travel Food Services IPO: GMP indication
The grey market premium indicated that the stock would list around its issue price. The stock was trading at a price of Rs 1,125 in the grey market, implying a premium of 2.27% to the IPO price.
The GMP is an unofficial, informal premium at which shares of a company, which is about to launch its IPO, are traded in the ‘grey market’ before they are officially listed on the stock exchanges.
Travel Food Services IPO: Subscription status
The IPO was India’s ninth-largest this year. It was subscribed to a total of 3 times, driven by institutional players that bid 8.10 times the shares reserved for them. Meanwhile, retail investors remained sceptical as the bid stood at 0.73 times. The employee segment was booked 1.81 times.
Travel Food Services IPO: Details
Travel Food Services IPO mopped up Rs 2,000 crores from the primary markets through the issuance of an offer for sale of 1.82 crore shares. The bidding started from July 7 and ended on July 9. The shares allotment of Travel Food Services was finalised on July 10. The company kept the issue price at Rs 1,110 per equity share.
Travel Food Services IPO: Lot size and bidding
A retail participant could bid for as minimum as 13 shares that amounted to Rs 13,585. The small non-institutional investors could bid for 14 lots that included 182 shares, amounting to Rs 2 lakh and for big NIIs, it was 70 lots of 910 shares, totalling Rs 10 lakh. The issue included a reservation of up to 40,382 shares for employees offered at a discount of Rs 104 to the issue price.
Travel Food Services IPO: Book manager
Kotak Mahindra Capital Company was the lead book-running manager of the IPO, while MUFG Intime India (Link Intime) was the registrar for the issue.
“Travel Food Services exhibits high-growth profitability, strong cash conversions, and a solid balance sheet, which is well-positioned for further expansion. Thus, we recommend a ‘Subscribe’ rating for this issue,” said Choice Broking in an IPO note ahead of bidding.