Tourism boom, rising spend give wings to travel firms' IPO plans

Travel companies are riding high on the post-pandemic growth in domestic and international tourism and are taking this opportunity to list on the bourses.

- AKSHARA SRIVASTAVA & GULVEEN AULAKH

Last week, airport quick service restaurant player Travel Food Services listed on the bourses, raising ₹2,000 crore.

On the other hand, Cordelia Cruise Operator Waterways Leisure Tourism had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) last month for an initial public offering (IPO) of ₹727 crore. The closely-connected hospitality industry is also expected to see a flurry of IPOs this year. LaRiSa Hotels and Resorts, for instance, has filed DRHP for an IPO expected to take place within a quarter.

"We're planning to raise ₹45 crore. Equity dilution is about 25 per cent. Documents have been filed with Sebi and we're awaiting approval," Randhir Narayan, director at LaRiSa, told Business Standard.

India's own economic growth amid global uncertainties, the expanding middle class and a younger demographic tourism surge are all aiding growth of the travel and hospitality sectors.