TBO Tek Shares Close 53% Higher Against IPO Price

TBO Tek Ltd. shares closed at Rs 1,404 apiece on both National Stock Exchange and BSE, up 52.61% over their IPO price of Rs 920 apiece, on its listing.

The shares opened at Rs 1,426 apiece, a premium of 55%, on the National Stock Exchange, and Rs 1380 per share, a 50% premium, on the BSE.

Travel industry had a lot of momentum in the last quarter and demand in the Q1 of the current financial year has also been great on the domestic and the international front, said Ankush Nijhawan, co-founder and joint managing director, TBO Tek.

The travel distribution platform company has over 41,000 bookings per day through their platform, and has a global headcount of over 2,000 people.

The company will use approximately Rs 127 crore from the proceeds to strengthen its platform by adding new buyers and suppliers through investment in technologies and infrastructure to support their plans. It will use Rs 40 crore for inorganic acquisitions and general corporate purposes.

Hotel demand is correlated with airline demand and the momentum remains favourable, said Gaurav Bhatnagar, co-founder and joint managing director, TBO Tek. "The momentum remains and tailwinds for travel continue to grow."

"Our theory of Ebitda expansion will come from operating leverages and not by increasing our current margins," Nijhawan said. Opportunities for acquisition for TBO Tek remain across the world, but the focus will be in US and Europe, according to Nijhawan.

TBO Tek is a travel distribution platform with reach in over 100 countries as of June 30, 2023. The company offers over 7,500 destinations and facilitates 33,000 bookings per day through their platform.

The Rs 1,550.8 crore initial public offering was subscribed 86.7 times on the third and final day, led by institutional investors (125.51 times), followed by non-institutional investors (50.60 times) and retail investors (25.74 times).

The IPO consisted of a fresh issue of equity shares aggregating Rs 400 crore and an offer for sale of up to 1.25 crore equity shares by certain shareholders.

Axis Capital Ltd., Goldman Sachs (India) Securities Pvt., Jefferies India Pvt. and JM Financial Ltd. were the book-running lead managers for the issue.