Travelstack Tech, the parent company of FabHotels, is all set to raise up to Rs 250 crore through an initial public offering (IPO). The company has filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) and plans to use the proceeds to support its business operations.
The IPO will combine a fresh issue of shares and an offer for sale by existing shareholders. The fresh issue will have a face value of Rs 1 each, and the company plans to raise up to Rs 250 crore. Promoters Vaibhav Aggarwal and Adarssh Mnpuria, along with other investors, will offload up to 26.85 crore shares through the offer for sale.
The proceeds from the fresh issue will be used primarily to support business operations. The company plans to deploy Rs 135 crore towards working capital requirements and Rs 45 crore towards repayment or prepayment of certain borrowings, with the balance earmarked for general corporate purposes.
Travelstack Tech operates FabHotels, a hotels-focused corporate travel management platform for enterprise clients. The platform primarily serves large and mid-sized enterprises, enabling them to manage hotel bookings, approvals, expense processing, and compliance through a single system. In the six months ended September 30, the company served 474 enterprise clients, including more than 100 NSE-listed companies and over 50 multinational corporations.
India’s domestic corporate travel market, excluding meetings and events, was valued at Rs 3.6 lakh crore in FY25, with hotels accounting for about a third of total spending and more than half of the sector’s profit pool. Travelstack Tech is entering the public markets at a time when the corporate travel sector is expanding but remains operationally fragmented.
The company reported revenue from operations of Rs 400 crore and a net profit of Rs 32 crore for the six months ended September 30, 2025. For FY25, revenue stood at Rs 716 crore, up sharply from Rs 411 crore in FY23.
Remember, this is a developing story, and it's essential to do your own research before making any investment decisions. The IPO market can be volatile, and it's crucial to stay informed and up-to-date with the latest news and developments.
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