TBO Tek Attracts Rs 696 Crore from Anchor Investors Pre-IPO

Travel distribution giant TBO Tek has successfully garnered approximately Rs 696 crore from anchor investors just before its eagerly anticipated initial public offering (IPO). In a strategic move, the company allocated 75.7 lakh equity shares to an impressive roster of 47 funds at a price of Rs 920 each, culminating in a transaction size of Rs 696.5 crore. This significant financial milestone was officially documented in a circular on the BSE's website.

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Among the distinguished anchor investors are global financial powerhouses such as the Abu Dhabi Investment Authority, Government Pension Fund Global Norges, and leading mutual funds including ICICI Prudential, Kotak Mahindra, SBI Mutual Fund. Additionally, international investment firms like Blackrock Global Fund, Eastspring Investments, Fidelity Funds, and Goldman Sachs have shown their confidence in TBO Tek's business model and growth prospects.

The forthcoming IPO is set with a price range of Rs 875 to Rs 920 per share and is scheduled to be open for public subscription from May 8 to May 10. TBO Tek aims to raise Rs 1,551 crore through this maiden public offering. The offering comprises a fresh issue of equity shares amounting to Rs 400 crore and an offer for sale (OFS) of up to 1.25 crore equity shares valued at Rs 1,151 crore by both promoters and investors.

Key figures participating in the OFS include TBO Tek's promoters Gaurav Bhatnagar, Manish Dhingra, and LAP Travel, alongside investors TBO Korea and Augusta TBO. The proceeds from the fresh issue are earmarked for several strategic initiatives aimed at bolstering the company's platform. These include expanding its network by adding new buyers and suppliers, exploring potential inorganic acquisitions, and allocating funds for general corporate purposes.

As of June 30, 2023, TBO Tek stands as a formidable entity in the global travel and tourism industry. The company boasts a vast network offering services across over 100 countries, providing access to more than 7,500 destinations. It also facilitates an impressive volume of 33,000 bookings per day through its platform. In a significant development in October 2023, investment firm General Atlantic announced its decision to acquire a minority stake in TBO Tek, further solidifying the company's market position.

The IPO's book-running lead managers include esteemed institutions such as Axis Capital Ltd, Goldman Sachs India Securities Private Ltd, Jefferies India Private Ltd, and JM Financial Ltd. Upon completion of the IPO process, TBO Tek's equity shares are slated for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), marking a new chapter in the company's journey towards growth and expansion in the travel distribution sector.