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FabHotels parent Travelstack Tech gets SEBI green light for IPO

EntrackrEntrackr · 2d ago
FabHotels parent Travelstack Tech gets SEBI green light for IPO
Medial

FabHotels parent Travelstack Tech gets SEBI green light for IPO Budget hospitality chain FabHotels has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The Bengaluru-based company joins the list of firms such as Leap India, Turtlemint, Molbio, and Infra.Market that have received the regulator’s green light for their IPOs. According to SEBI’s latest update, Travelstack Tech has secured the regulator’s observation letter, allowing the company to proceed with its proposed public issue. The Goldman Sachs-backed company had filed its draft red herring prospectus (DRHP) in December last year. As per the DRHP, the IPO will comprise a fresh issue of equity shares worth Rs 250 crore, along with an offer for sale (OFS) of up to 2.68 crore equity shares by existing shareholders. The OFS component will see partial stake sales by several early investors including Accel, Goldman Sachs, Qualcomm, and angel investor Anupam Mittal. Its founders Vaibhav Aggarwal and Adarsh Manpuria, are also expected to offload a portion of their holdings as part of the offer for sale. Through the fresh issue, the company plans to raise capital primarily for working capital requirements, repayment of certain borrowings, and general corporate purposes. The IPO will be managed by Motilal Oswal, IIFL Capital and Nuvama while MUFG Intime will act as registrar. As per the DRHP, Accel India is the largest external stakeholder with 21.75% followed by Qualcomm Asia which holds 8% stake. Meanwhile, Vaibhav Aggarwal owns 19.20% of the 12-year-old company. Founded in 2014 by Aggarwal and Adarsh Manpuria, FabHotels operates over 1,300 properties across more than 50 major Indian cities, including Mumbai, NCR, Bengaluru, and Goa. As per the DRHP, FabHotels reported operating revenue of Rs 400 crore in the first half of the ongoing fiscal year (H1 FY26) with net profits of Rs 32 crore during the six months period ending September 2025.

Related News

Exclusive: FabHotels gears up for IPO, converts into public company

EntrackrEntrackr · 4m ago
Exclusive: FabHotels gears up for IPO, converts into public company
Medial

Exclusive: FabHotels gears up for IPO, converts into public company Hospitality chain FabHotels changed its status and converted itself into a public company. The board has passed a resolution and approved its conversion, a move that might signal its preparation for a public listing. FabHotels’ parent company, Travelstack Tech Private Limited (formerly Casa2 Stays Pvt Ltd), has passed a resolution to rename the entity as Travelstack Tech Limited by removing the word “Private,” according to its filing with the Registrar of Companies (RoC). Founded in 2014 by Vaibhav Aggarwal and Adarsh Manpuria, Gurugram-based FabHotels is a hotel chain operating over 1,300 properties across more than 50 major Indian cities, including Mumbai, the National Capital Region, Bengaluru, and Goa. According to startup data platform TheKredible, the company has raised around $68 million to date from investors including Accel and Goldman Sachs. Its most recent funding was a $20 million round led by Panthera Partners in September 2023. In FY25, the Accel-backed company’s revenue increased over 20% to Rs 716 crore in FY25, with narrowing losses by 45% to Rs 62.7 crore compared to Rs 114 crore in FY24. FabHotels competes directly with Treebo and Bloom Hotels. While both are yet to file their FY25 numbers, Treebo crossed Rs 100 crore in revenue in FY24, whereas Bloom Hotels saw a 73.6% rise in operating revenue to Rs 250 crore and posted a profit of Rs 14 crore.

FabHotels’ parent files DRHP to raise Rs 250 Cr via fresh issue

EntrackrEntrackr · 3m ago
FabHotels’ parent files DRHP to raise Rs 250 Cr via fresh issue
Medial

FabHotels’ parent company Travelstack Tech Limited has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise Rs 250 crore through a fresh issue of shares. The public offer will also include an offer-for-sale (OFS) of 2.68 crore equity shares by its early backers including Accel India, Panthera Growth Fund, Anupam Mittal, Qualcomm, and XTO10X. According to the DRHP, Vaibhav Aggarwal will offload up to 35.82 lakh shares and Adarsh Manpuria will offload up to 17.91 lakh shares, while Anupam Mittal plans to sell 10.37 lakh shares. Other selling shareholders include Accel India, Panthera Growth Fund, Global Private Opportunities Partners and Qualcomm. The company will utilize the net proceedings from Fresh Issue for part-funding the working capital requirements, repayment of certain borrowings availed and general corporate purposes. Travelstack may also explore a pre-IPO placement of up to Rs 50 crore, which, if undertaken, will reduce the size of the public offer. As per the DRHP, Accel India is the largest external stakeholder with 21.75% followed by Qualcomm Asia which holds 8% stake in the company. Meanwhile, Vaibhav Aggarwal owns 19.20% of the company. Founded in 2014 by Aggarwal and Adarsh Manpuria, Gurugram-based FabHotels is a hotel chain operating over 1,300 properties across more than 50 major Indian cities, including Mumbai, NCR, Bengaluru, and Goa. Financially, FabHotels reported operating revenue of Rs 400 crore in the first half of the ongoing fiscal year (H1 FY26). Its net profit stood at Rs 32 crore during the same period. The IPO will be managed by Motilal Oswal, IIFL Capital and Nuvama while MUFG Intime will act as registrar.

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