Travelstack Tech, the parent company of budget hospitality chain FabHotels, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). This milestone aligns the Bengaluru-based company with other firms like Leap India, Turtlemint, Molbio, and Infra.Market that have also gained SEBI’s approval for their IPOs.
Travelstack Tech’s IPO, as outlined in the draft red herring prospectus (DRHP) filed last year, will consist of a fresh issue of equity shares valued at Rs 250 crore, alongside an offer for sale (OFS) of up to 2.68 crore equity shares by existing shareholders. Early investors, including Accel, Goldman Sachs, Qualcomm, and angel investor Anupam Mittal, as well as the company’s founders Vaibhav Aggarwal and Adarsh Manpuria, are expected to participate in the OFS component.
The IPO proceeds will primarily be used for working capital needs, debt repayment, and general corporate purposes. Notable stakeholders in Travelstack Tech include Accel India with a 21.75% stake, Qualcomm Asia with an 8% stake, and Vaibhav Aggarwal, one of the founders, owning 19.20% of the company.
Established in 2014, FabHotels operates a network of over 1,300 properties in various Indian cities. The company reported operating revenue of Rs 400 crore in the first half of the current fiscal year, with net profits amounting to Rs 32 crore for the six-month period ending September 2025.
Source: Entrackr : Latest Posts