Markets regulator SEBI has greenlit the IPO of Travelstack Tech, the parent entity of budget hotel chain Fabhotels and hotel-focused corporate management provider TravelPlus.
The regulator issued its observation letter to Travelstak on March 11. In SEBI’s parlance, the issuance of the observation letter is the official nod to a company to proceed with its public offering.
The company’s proposed IPO is expected to comprise a fresh issue of shares worth up to ₹250 Cr and an offer-for-sale (OFS) component of up to 2.69 Cr shares. It filed its draft red herring prospectus (DRHP) with the SEBI in December 2025.
Investors like Accel, Goldman Sachs, Qualcomm, Anupam Mittal and Panthera will offload a portion of their shareholding in the company via the IPO, while its founders and promoters Adarssh Mnpuria and Vaibhav Aggarwal plan to offload 17.91 Lakh and 35.82 Lakh shares, respectively.
The company plans to utilise the fresh proceeds netted via the IPO to fund working capital requirements, repay/ prepay certain borrowings and for general corporate purposes.
Travelstack, formerly known as Casa2 Stays Pvt Ltd, operates SaaS platform TravelPlus and budget hotel chain FabHotels. While it operated close to 1,400 properties under the FabHotels brand as of September 30, 2025, TravelPlus, which allows businesses to simplify travel for their workforce, served over 100 clients like Eternal, Infra.Market, Zepto, Titan Company and UnifyApps.
On the financial front, the company reported a net profit of ₹32.2 Cr in H1 FY26 on an operating revenue of ₹400.4 Cr for the period.
In FY25, Travelstack managed to trim its net loss by 95% to ₹6.3 Cr from ₹114.1 Cr in the previous fiscal year. Operating revenue for the period surged 31% to ₹716.4 Cr from ₹547.8 Cr in FY24.
The SEBI nod comes at a time when the global equities markets, including India’s, have been under immense pressure due to the ongoing conflict in West Asia.
With no signs of the conflict easing, market experts expect volatility to persist in the near term, potentially disrupting the IPO plans of companies. Amid this, fintech major PhonePe today said it has temporarily paused its listing plans until the situation eases.
Notably, the momentum in new-age tech IPOs carried over from 2025 into 2026, with five companies – Fractal, SEDEMAC, Aye Finance, Shadowfax, and Amagi – going public in the first three months of the year.
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