Travelstack Tech, the parent entity of budget hospitality brand 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, supported by leading global investors including Goldman Sachs, is among a set of companies recently cleared by the regulator to tap the capital markets.
IPO Structure and Offer Details
Following SEBI’s observation letter, Travelstack Tech can now advance its public issue. The IPO comprises a fresh issue of equity shares aggregating to ₹250 crore, along with an offer for sale (OFS) of up to 2.68 crore shares by existing shareholders.
The OFS will enable partial exits for early investors such as Accel, Goldman Sachs, and Qualcomm, as well as angel investor Anupam Mittal. Founders Vaibhav Aggarwal and Adarsh Manpuria are also expected to dilute a portion of their holdings.
Utilisation of Proceeds
The proceeds from the fresh issue are proposed to be deployed towards working capital requirements, repayment of certain outstanding borrowings, and general corporate purposes, supporting the company’s growth strategy.
The IPO will be managed by a consortium of investment banks, including Motilal Oswal Financial Services, IIFL Capital, and Nuvama Wealth Management, while MUFG Intime India Private Limited will act as the registrar.
Shareholding and Financial Performance
As per the Draft Red Herring Prospectus (DRHP), Accel India is the largest external shareholder with a 21.75% stake, followed by Qualcomm Asia holding 8%. Co-founder Vaibhav Aggarwal holds a 19.20% stake in the company.
Founded in 2014, FabHotels has established a strong presence in India’s budget hospitality segment, operating over 1,300 properties across more than 50 cities, including key markets such as Mumbai, NCR, Bengaluru, and Goa.
Financially, the company reported operating revenue of ₹400 crore in the first half of FY26, along with a net profit of ₹32 crore for the six-month period ending September 2025.
Summary
Travelstack Tech, the parent of FabHotels, has received SEBI approval to launch its IPO, comprising a ₹250 crore fresh issue and an OFS of up to 2.68 crore shares. The offering will facilitate partial exits for key investors while funding business expansion and debt reduction. With a strong presence in the budget hospitality segment and improving financial performance, the company is preparing to enter public markets.
Disclaimer:
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