TBO Tek IPO opens today: General Atlantic-backed initial public offering (IPO) of TBO Tek Limited has hit the Indian primary market today. The public issue worth ₹1,550.81 crore will remain open till 10th May 2024. This means that mainboard IPO will remain open from Wednesday to Friday this week. The company has fixed TBO Tek IPO price band at ₹875 to ₹920 per equity share. The book build issue is a mix of fresh shares and OFS (Offer For Sale). The company aims to raise ₹400 crore from fresh shares while the rest ₹1,150.81 crore is reserved for the OFS route. The mainboard IPO is proposed for listing on BSE and NSE. Shares of TBO Tek are available in the grey market as well. According to stock market observers, TBO Tek share price is quoting at a premium of ₹529 in the grey market today.
TBO Tek IPO subscription status
By 11.57 AM on day 1 of bidding, the book build issue was subscribed 0.29 times whereas the retail portion of the book build issue was booked 0.91 times. The NII portion of the public issue was subscribed 0.44 times.
Important TBO Tek IPO details
1] TBO Tek IPO GMP: Shares of the company are available at a premium of ₹529 per share in the grey market today, say market observers.
2] TBO Tek IPO price: The company has fixed price band of the General Atlantic-backed public issue at ₹875 to ₹920 apiece.
3] TBO Tek IPO date: The book build issue has opened today and will remain open till 10th May 2024.
4] TBO Tek IPO size: The company aims to raise ₹1,550.81 crore from this public offer, which is a mix of fresh shares and OFS.
5] TBO Tek IPO lot size: A bidder will be able to apply in lots and one lot of the book build issue comprises 16 shares.
6] TBO Tek IPO allotment date: Finalization of share allocation is most likely on 13th May 2024 i.e. on Monday next week.
7] TBO Tek IPO registrar: KFin Technologies has been appointed as official registrar of the book build issue.
8] TBO Tek IPO listing: The public issue is proposed for listing on BSE and NSE.
9] TBO Tek IPO listing date: In the wake of the ‘T+3 listing rule”, the most likely TBO Tek IPO listing date is 15th May 2024 i.e. Wednesday next week.
TBO Tek IPO: Apply or not?
10] TBO Tek IPO review: Speaking on the public issue, Tarun Singh, MD at Highbrow securities said, “TBO Tek Ltd.’s IPO, marked by a substantial Offer for Sale (OFS), presents a complex scenario for potential investors. This global travel distribution leader, set to expand following FY2023’s achievements, navigates an industry vulnerable to global uncertainties, highlighted during the pandemic and current geopolitical tensions limiting travel. Its financials reflect such volatility, suggesting a sensitivity that may not sit well with the steep valuations sought, offering limited medium-term gains for shareholders. Furthermore, the IPO’s structure, heavily leaning on an OFS, and the modest proceeds from the fresh issue raise questions about its adequacy for TBO Tek’s operational scale,” adding, “Despite support
from renowned underwriters, the offering lacks the compelling clarity needed for a strong investment case, prompting me to pivot to SME IPOs that might better reflect value and stability in an unpredictable market environment.”
Endorsing the TBO Tek IPO with a ‘subscribe’ tag, Marwadi Financial Services, a reputable financial institution, provides a detailed analysis. They consider the TTM (Dec-23) / FY24-Annualized EPS of ₹16.80/18.93 on a post-issue basis, projecting the company to list at a P/E of 54.77x/48.59x with a market cap of Rs.99,901 mn, whereas its peer namely Rategain Travel Technologies Limited is trading at a P/E of 61.2x. They assign a “Subscribe” rating to this IPO, citing the company’s capital efficient business model with a combination of sustainable growth and its reasonable valuation compared to its peers. This endorsement from a trusted source can instill confidence in potential investors.
Encouraging potential investors to consider the TBO Tek IPO, Ventura Securities emphasizes the company’s pivotal role as a travel distribution intermediary, connecting over 750 airlines and approximately 1 million hotels worldwide with buyers such as travel agencies and independent travel advisors. Its modular structure allows for tailored solutions, while its asset-light model ensures scalability. This platform’s ability to introduce new offerings fosters a network effect, enhancing its market presence and efficiency. Between fiscal years 2019 and 2023, Travel Boutique Online (TBO Tek) achieved impressive compounded annual growth rates (CAGRs) of 24.7% in revenue and 43.7% in EBITDA, signaling potential for substantial returns on investment.
TBO Tek shareholding
As per the Red Herring Prospectus of TBO Tek IPO, company promoters own 51.26 percent stake in this online travel distributor company whereas public shareholders own 46.43 percent stake in the company.
Augusta TBO is the largest public shareholder in this company as it owns a 19.53 percent stake in the company. General Atlantic owns 15,635,994 company shares, which is 15 percent of the total paid-up capital of the company. TBO Korea owns 11,523,854 shares or 11.06 percent stake in the company. Promoters and public shareholders own 98.54 percent of the company whereas the TBO ESOP Trust, which is a non-promoter and non-public shareholder entity, owns a 2.31 percent stake in the company.
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
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