TBO Tek IPO: Public Offer To Go Live Tomorrow; GMP Hints Premium, Focus On Subscription

The initial public offering (IPO) of B2B travel distribution platform TBO Tek is set to kick off on Wednesday, May 8, promising opportunities for those eyeing the travel industry. With a three-day bidding window ending on May 10, investors are gearing up to subscribe to shares.

TBO Tek, a business-to-business travel solutions player, is poised to raise Rs 1,551 crore from its maiden public offer. The company's unlisted shares are already commanding a premium of Rs 530.

The Grey Market Premium (GMP), a barometer of investor sentiment, offers a glimpse into the potential listing price.

Prospective shareholders have been handed a number of shares, priced in the range of Rs 875-920 each, inviting bids for a minimum of 16 equity shares per lot, with multiples thereafter. The offer includes equity worth Rs 400 crore, alongside an offer for sale (OFS) of up to 1.25 crore shares, orchestrated by promoters and investors.

Key stakeholders, including Gaurav Bhatnagar and Manish Dhingra, are poised to take their stakes in the venture. Augusta TBO emerges as the largest public shareholder, wielding a 19.53% stake, while General Atlantic and TBO Korea also claim a stake.

The allocation strategy states that 75% of the portion is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.

TBO Tek offers a comprehensive services, including travel inventory management, currency support, and forex assistance. By empowering sellers to showcase their inventory and set prices effectively, TBO Tek has carved a niche for itself in the travel industry.

In the fiscal year ended March FY23, the company witnessed a surge in both revenue and profits, with profit skyrocketing by 340% year-on-year to Rs 148.5 crore and revenue from operations soaring by 120% to Rs 1,064.6 crore compared to the previous year.

In the nine-month period ended December 2023, TBO Tek surpassed its FY23 profit and revenue. The net profit rose by 28% year-on-year to Rs 154 crore and revenue climbed 31% to Rs 1,024 crore compared to the same period in the previous fiscal year FY23.

Financial institutions like Axis Capital, Goldman Sachs (India) Securities, Jefferies India, and JM Financial are serving as the book-running lead managers for TBO Tek's Initial Public Offering (IPO). Kfin Technologies, meanwhile, has been appointed as the registrar of the issue.

The company is set to finalize the basis of the allotment of IPO shares by May 13, with equity shares slated to be credited to the demat accounts of successful investors by May 14. Trading in TBO Tek's equity shares will commence on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) starting May 15.

TBO Tek charts forward, earmarking the capital infusion for some strategic initiatives. The blueprint includes fortifying the platform's foundations by enlisting new buyers and suppliers, exploring inorganic acquisitions, and general corporate governance.

For those who secure their stake in TBO Tek, equity shares will be credited to demat accounts on May 14. Investors will monitor further development on subscription and allotment starting tomorrow with a focus on grey market premium (GMP).