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TBO Tek IPO: The initial public offering for TBO Tek opens for subscription today, May 8. The company, via a mix of a fresh issue of 0.43 million shares and an offer for sale (OFS) of 12.5 million shares, aims to raise Rs 1,150.81 crore.
TBO Tek IPO will close for subscription on May 10.
Set up in 2006, TBO Tek Limited, formerly known as Tek Travels Private Limited, operates as a travel distribution platform. It provides a comprehensive range of travel inventory services tailored to customer needs, including support for multiple currencies and forex assistance.
TBO Tek streamlines travel operations for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, and rail companies, as well as for retail and corporate customers. TBO Tek’s two-sided technology platform facilitates seamless connectivity between suppliers and customers, enabling sellers to showcase inventory and set prices while offering buyers an integrated, multi-currency, and multilingual one-stop solution for booking travel across various segments.
Here is all you need to know about the TBO Tek IPO:
Price band
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TBO Tek IPO price band is set at Rs 875-920 per share.
Financial performance
TBO Tek topline surged 112.09 per cent and profit after tax (PAT) zoomed 340.4 per cent between the financial years ending March 31, 2023, and March 31, 2022.
Objective
TBO Tek aims to use the funds for expansion of the supplier and buyer base; amplification of value of our platform by adding new lines of businesses; inorganic growth through selective acquisitions and building synergies with our existing platform; and leveraging data procured to offer bespoke travel solutions.
Lot size
The minimum lot size for an application is 16 shares, requiring a minimum investment of Rs 14,720 for retail investors. The minimum lot size for non-institutional investors (NII) is 14 lots (224 shares), worth Rs 206,080, and for qualified institutional buyers (QIB), it is 68 lots (1,088 shares), worth Rs 1,000,960.
Grey Market Premium (GMP)
The Grey Market Premium for TBO Tek stood at Rs 530, indicating a potential listing gain of 57.61 per cent at the upper price band of the IPO.
Allotment and listing
The basis of allotment will be finalised by May 13, with shares credited to demat accounts by May 14. TBO Tek IPO is scheduled for listing on the NSE and BSE on May 15.
Lead managers and registrar
Axis Capital Limited, Jefferies India Private Limited, Goldman Sachs (India) Securities Private Limited, and JM Financial Limited are the book running lead managers of the TBO Tek IPO, with KFin Technologies Limited serving as the registrar for the issue.
Competitors
TBO Tek competes with companies like Rategain Travel Technologies in India while Travel CTM and Webjet Ltd abroad.
Should you subscribe?
Brokerage firm Swastika Investmart said TBO Tek has displayed notable financial improvement post-FY21, with consistent growth in the past two fiscal years.
However, certain risks necessitate careful evaluation. The company's dependency on a limited set of suppliers and third-party systems may expose it to vulnerabilities.
Moreover, the tourism sector, in which TBO Tek operates, is highly susceptible to external influences and fiercely competitive.
Despite a seemingly fully priced price-to-earnings (P/E) valuation of 64x, the absence of direct comparables complicates definitive analysis. Given TBO Tek's promising growth trajectory and potential listing gains, we recommend a subscribe rating for its IPO.
