TSC India IPO Lists at 2.85% Discount Despite Robust Demand

The travel management services provider, TSC India Limited, made a disappointing debut on the NSE SME platform on July 30, 2025. After closing its IPO bidding between July 23 - July 25, 2025, the company commenced trading with a 2.85% discount to its issue price, reflecting cautious investor sentiment despite strong subscription response in the travel services sector.

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 TSC India Listing Details

TSC India Limited launched its IPO at ₹70 per share with a minimum investment of 4,000 shares costing ₹2,80,000. The IPO received exceptional response with subscription of 73.21 times - NII segment leading at 133.17x, retail investors at 66.47 times, and QIB at 40.03 times, indicating strong interest despite underlying business concerns.

First-Day Trading Performance Outlook

TSC India delivered disappointing debut performance with discount pricing despite exceptional subscription response, highlighting market concerns about travel service companies in competitive segments. The TSC India share price opened at ₹68 on NSE SME, representing a discount of 2.85% from the issue price of ₹70, delivering losses for investors and highlighting market scepticism about the travel services business model despite subscription enthusiasm.

Growth Drivers and Challenges

Growth Drivers:

Strong Operational Scale: Managing over 420 daily bookings with 12,000 monthly transactions, demonstrating operational efficiency and market presence

Comprehensive Service Portfolio: Integrated travel solutions including booking management, analytical reporting, 24/7 emergency support, and transparent pricing practices

Technology Integration: Advanced platform with GDS integration, automated accounting solutions, and real-time flight updates enhancing service delivery

Steady Financial Performance: Revenue growth of 28% in FY25 with a healthy PAT margin of 19.11% and an impressive EBITDA margin of 33.96%

Challenges:

Market Reception Issues: Listing at a discount despite strong subscription indicates fundamental concerns about business sustainability and competitive positioning

Highly Competitive Sector: Operating in a fragmented travel services market with established players affecting margin sustainability and pricing power

Static Profit Growth: Minimal PAT growth from ₹4.72 crore to ₹4.93 crore raising concerns about scalability and profitability expansion

High Debt Burden: Increased borrowings from ₹17.76 crore to ₹25.53 crore, indicating financial leverage concerns

Utilisation of IPO Proceeds

Working Capital Requirements: ₹22.0 crore for funding operational needs and supporting business expansion in the competitive travel services market

General Corporate Purposes: Remaining funds for strategic initiatives and operational requirements, enhancing service capabilities

Issue Expenses: Covering costs related to IPO process and regulatory compliance
 

Financial Performance of TSC India

Revenue: ₹26.32 crore for FY25, showing strong 28% growth from ₹20.59 crore in FY24, reflecting recovery in travel sector and successful client acquisition.

Net Loss: ₹4.93 crore in FY25, demonstrating modest 4% growth from ₹4.72 crore in FY24, though minimal improvement raises scalability concerns.

Financial Metrics: Strong ROE of 31.13%, healthy ROCE of 19.49%, attractive PAT margin of 19.11%, robust EBITDA margin of 33.96%, and market capitalisation of ₹98.34 crore.

While concerns over competitive market dynamics and static profit growth overshadow positives, the company's operational scale, comprehensive service portfolio, and strong margins provide potential for recovery, though the poor debut performance suggests investors should exercise caution given the disconnect between subscription enthusiasm and market valuation in the fragmented travel services industry.