Travelstack Tech, the parent company of budget hospitality brand FabHotels, has received approval from the Securities and Exchange Board of India (SEBI) to move forward with its initial public offering (IPO).
According to SEBI’s latest update, the Bengaluru-based company has obtained the regulator’s observation letter, which allows it to proceed with the planned public issue. Earlier, the company had filed its Draft Red Herring Prospectus (DRHP) in December last year as part of the listing process.
As outlined in the DRHP, the IPO will include a fresh issue of equity shares worth Rs 250 crore. In addition, the offering will feature an offer for sale (OFS) of up to 2.68 crore equity shares by existing shareholders.
The OFS component will involve partial stake sales by several early investors, including Accel, Goldman Sachs, and Qualcomm. Additionally, angel investor Anupam Mittal will also sell a portion of his shareholding through the public offering.
Furthermore, the company’s founders, Vaibhav Aggarwal and Adarsh Manpuria, are expected to offload part of their stakes as part of the OFS.
According to the filing, the company plans to utilize the proceeds from the fresh issue primarily to meet working capital requirements. Moreover, the funds will help repay certain borrowings and support general corporate purposes.
The IPO will be managed by Motilal Oswal Financial Services, IIFL Capital, and Nuvama Wealth Management, while MUFG Intime will serve as the registrar to the issue.
The DRHP also highlights the company’s shareholding structure. Accel India currently stands as the largest external shareholder, holding a 21.75 percent stake in the company. Meanwhile, Qualcomm Asia holds around 8 percent, while co-founder Vaibhav Aggarwal owns 19.20 percent.
Founded in 2014, FabHotels has grown significantly in India’s budget hospitality segment. Today, the company operates more than 1,300 properties across over 50 cities, including Mumbai, the National Capital Region, Bengaluru, and Goa.
From a financial perspective, the company reported operating revenue of Rs 400 crore in the first half of FY26. Additionally, it recorded a net profit of Rs 32 crore for the six-month period ending September 2025, according to the DRHP.
With this approval, Travelstack Tech joins a growing list of companies preparing for public listings. Other firms that have recently received SEBI’s nod include Leap India, Turtlemint, Molbio Diagnostics, and Infra.Market.
