TSC India

• TSC India is coming out with an initial public offering (IPO) of 36,98,000 equity shares in a price band Rs 68-70 per equity share.
• The issue will open on July 23, 2025 and will close on July 25, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 6.80 times of its face value on the lower side and 7.00 times on the higher side.
• Book running lead manager to the issue is Expert Global Consultants.
• Compliance Officer for the issue is Sonia Gaba.

Profile of the company

TSC India is a travel management company which specializes in providing comprehensive air ticketing services tailored to the requirements of its clients. The company is focused on serving the B2B and corporate sectors. TSC works in close collaboration with airlines and travel agents to deliver cost-effective and streamlined travel solutions to end user customers. The company’s operations encompass partnerships with a range of travel service providers, enabling it to manage various aspects of travel planning, including booking air tickets. The company operates in multiple cities across India, including Jalandhar, Chandigarh, Lucknow, Ahmedabad, Jaipur, New Delhi, and Pune, reflecting its growing geographical presence.

The company is a well-established travel management company with over 20 years of experience, specializing in B2B air ticketing services. Supported by a skilled team of more than 75 professionals, the company has facilitated the sale of around 330,000 tickets over the past three years, catering primarily to retailers, tour operators, and corporate clients. The company operates from seven locations across India and has achieved a consistent 100% booking accuracy. It handles an average booking volume of over 400 per day, 3,000 per week, and 13,000 per month, reflecting its operational efficiency. As of March 31, 2025, the company has successfully registered approximately 3,000 customers on its platform, further underscoring its strong presence in the B2B travel market.

The company provides access to a wide network of domestic and international flights, offering competitive fares and flexible booking options. Its services are designed with an emphasis on efficiency, cost-effectiveness, and adherence to ethical business practices. It maintains a strong commitment to customer satisfaction, ensuring that client needs are met with precision and care. Over the years, the company has built a diverse client base, which includes travel agencies from various locations in India. The company’s approach is guided by a focus on strengthening its service offerings, fostering strategic partnerships, and integrating technology to enhance the quality and efficiency of its travel management solutions.

Proceed is being used for:

• Working capital requirements of the company
• General corporate purposes

Industry Overview

The travel and tourism industry significantly contributes to the Indian economy, serving as a major driver of economic growth and employment. Its impact is multifaceted, influencing various aspects of the economy: The travel and tourism sector is a substantial component of India’s GDP. It generates considerable revenue through domestic and international tourism, including spending on accommodation, food, transportation, and recreational activities. The industry's contribution to GDP includes both direct impacts, such as expenditures by tourists, and indirect impacts, like the effects on related industries such as construction, agriculture, and retail.

In the fiscal year 2023-24, domestic air travel in India exhibited notable growth compared to the previous year. Departing passengers reached 153.7 million, marking a significant increase of 13.0% from 136.0 million in 2022-23. This surge in passenger numbers is mirrored by a 12.2% rise in domestic airline demand, measured in Revenue Passenger Kilometres (RPK), which climbed from 132.0 billion to 148.2 billion. Additionally, the Available Seat Kilometres (ASK) for domestic airlines increased by 6.9%, reaching 169.2 Bn from 158.3 Bn. These metrics underscore a robust recovery and expansion in domestic air travel. Over the past decade, domestic passenger traffic has demonstrated a compound annual growth rate (CAGR) of 9.7%, reflecting sustained growth in the sector. This period saw a steady increase in passenger volumes, from 60.7 million in 2013-14 to 153.7 million in 2023-24.

India's aviation sector is experiencing remarkable growth, with the government investing around $11 billion to build new airports and refurbish existing ones. The country plans to increase its number of airports from 150 to 200 within the next five years to keep pace with the rapidly expanding air passenger market. With a population of 1.4 billion, India is on track to become the world's third-largest aviation market, following China and the United States. Domestic air passenger traffic is projected to double by 2030, reaching 300 million passengers annually, prompting significant upgrades in infrastructure and operational efficiency.  

Pros and strengths

Extensive travel inventory: The platform provides access to a wide range of travel services, including flights, accommodations, car rentals, and more. This extensive inventory enables partners to meet diverse client needs and offer tailored travel experiences, enhancing their competitiveness in the market.

Guaranteed booking confirmation: The company ensures prompt and reliable booking confirmations, minimizing uncertainties and delays that could affect travel plans. This enhances operational efficiency and ensures a positive experience for both partners and their clients.

Partnership with GDS Services: Through integration with Global Distribution Systems (GDS), the platform offers access to a broad array of travel services and competitive rates. This integration enhances the availability of global travel options, enabling partners to serve clients more effectively and with greater flexibility.

Risks and concerns

Business relies on a limited number of suppliers: The company depends on a select group of suppliers for a significant portion of its Gross Transaction Value (GTV). These supplier relationships are critical to its ability to provide buyers with access to a wide range of travel services and products. Any adverse developments in these relationships, such as changes in terms, reduction in inventory availability, or termination of agreements, could significantly impact its offerings. For instance, a supplier withdrawing its inventory from its platform could either limit the variety of products available to its customers or result in the complete unavailability of that supplier’s inventory on its platform.

Dependence on credit card companies and consumer financing options: A significant portion of its revenue is derived from airline ticketing transactions facilitated through credit cards and other consumer financing options. Its ability to process payments efficiently depends on its relationships with credit card companies, payment processors, and financial institutions. Any disruption, restriction, or adverse change in these relationships such as increased transaction fees, stricter credit approval processes, or termination of agreements could negatively impact its business operations and profitability. Additionally, consumer demand for its services is influenced by the availability and affordability of credit card financing. Economic downturns, regulatory changes, or increased interest rates may reduce consumer access to credit, leading to lower transaction volumes and a decline in its revenue.

Business is significantly dependent on the global travel and tourism industry: The company’s revenue is primarily derived from the global travel and tourism sector, which is highly sensitive to a range of economic, geopolitical, and environmental factors. These include general economic conditions, consumer and business confidence levels, safety concerns (actual or perceived), fluctuations in interest and exchange rates, fuel price volatility, availability and cost of financing, unemployment levels, and the overall cost of travel. Given that a substantial portion of its revenue is generated through fees associated with air ticketing services, its business is particularly vulnerable to factors that impact the demand for air travel. If air travel and other forms of tourism experience prolonged periods of reduced demand due to any of the aforementioned factors or other unforeseen circumstances, it could have a material adverse effect on its business, financial condition, results of operations, and future prospects.

Outlook

TSC India is a travel management company specializing in comprehensive air ticketing services for its clients. Focused on B2B and corporate sectors, TSC collaborates with airlines and travel agents to provide cost-effective travel solutions. The company has automated accounting solutions designed to simplify financial management. The company also has quick and reliable booking confirmations to reduce uncertainties and delays. On the concern side, the company’s business is significantly dependent on the global travel and tourism industry, and adverse developments in this industry could materially affect its operations, financial performance, and growth prospects. Moreover, the company operations require significant amount of working capital for a continuing growth. Its inability to meet its working capital requirements may adversely affect its results of operations.

The company is coming out with a maiden IPO of 36,98,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 68-70 per equity share. The aggregate size of the offer is around Rs 25.15 crore to Rs 25.89 crore based on lower and upper price band respectively. On performance front, revenue from operations increased from Rs 1,936.54 lakh in year ended March 31, 2024, to Rs 2,578.13 lakh in year ended March 31, 2025 with a resultant increase of 33.13% in year ended March 31, 2025. Moreover, net profit after tax increased from Rs 471.87 lakh in year ended March 31, 2024, to Rs 492.72 lakh in year ended March 31, 2025, with a resultant increase of 4.42% in year ended March 31, 2025.

The company stands out in the travel industry through distinct attributes that enhance operational efficiency and improve the customer experience. These strengths are focused on delivering reliable and streamlined services, ensuring an efficient booking process and comprehensive support for clients. By utilizing advanced technology and an extensive network, the company effectively addresses diverse customer needs and expectations. Going forward, the company offers automated accounting solutions designed to simplify financial management for travel partners. Key features include automated invoice generation, real-time payment tracking, and detailed financial reporting, ensuring transparency and accuracy in all transactions. These solutions minimize manual intervention, enabling partners to maintain organized financial records while focusing on business growth.