INDIA. Travel dining specialist SSP Group, alongside Indian joint-venture partner K Hospitality Corp, has announced a planned initial public offering (IPO) for Travel Food Services (TFS) in its home market of India. TFS is the leading player in the fast-growing airport quick service restaurant and lounge sectors in that market.
SSP and K Hospitality Corp will both act as Promoters of the planned IPO. Subject to regulatory approval, the pricing and completion is targeted to be in Spring 2025.
SSP and K Hospitality Corp said they have built “a very strong partnership since the creation of the TFS joint venture and both partners remain fully committed to the long-term success of TFS”.
SSP noted that India is a “strategically important market”, adding “we will continue to build on TFS’ market-leading position to capitalise on the opportunities in the fast-growing Indian travel market”.
SSP acquired an initial stake in TFS in 2016 and currently holds 49% (which it consolidates) for which it paid net consideration of £57.9 million (US$73.9 million).
Prior to the transaction, SSP said it expects to purchase additional shares in TFS (representing 1.01% of TFS’ issued share capital) at a value referenced to the IPO price; following completion of the purchase, SSP expects to indirectly hold 50.01% of TFS’ issued share capital and TFS will continue to be consolidated in SSP’s reported financial results. The Kapur Family Trust, which is the shareholding entity of K Hospitality Corp, will be the selling shareholder in the planned IPO.
SSP Group CEO Patrick Coveney said: “India is an attractive and strategically important market for SSP, aligned to our prioritisation of high growth geographies with the greatest long-term returns opportunities. Since 2016, through our joint venture partnership with K Hospitality Corp for Travel Food Services, we have built a successful Indian platform.
“An IPO will set up our investment in India for the next stage of growth. An IPO will support TFS as it continues to deliver its growth strategy whilst creating a structure to showcase the value of the business. The planned IPO would ensure that SSP controls and consolidates TFS, in line with our strategy for the market. We believe that the market potential in India combined with TFS’ economic model and market leadership provides a compelling opportunity to deliver growth and returns for the Group.”
TFS Managing Director and CEO Varun Kapur said: “Since 2016, we have benefited from SSP’s global travel QSR expertise and best practices, alongside long-standing relationships with an extensive range of international brands and bespoke concepts. We look forward to growing our close partnership with SSP as we embark on this significant milestone for our joint venture.”
A Draft Red Herring Prospectus (DRHP), the first public document in the Indian listing process, was filed today with the Bombay Stock Exchange and will shortly be filed with the National Stock Exchange of India.
The DRHP will be published on the Indian Stock Exchanges (www.bseindia.com and www.nseindia.com), the Securities and Exchange Board of India (SEBI) website (www.sebi.gov.in) and TFS’ website, which will be available at www.travelfoodservices.com/investors.
