TBO Tek IPO: All You Need To Know

TBO Tek Ltd.'s thee-day initial public offering to raise up to Rs 1,550.81 crore will open for subscription on May 8. The IPO consists 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.

The travel distribution platform announced a price range of Rs 875–920 per equity share for the IPO. The bidding for anchor investors will open for a day on May 7.

The minimum lot size for an application is 16 shares and the company will be listed on the National Stock Exchange and the BSE.

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

• Issue opens: May 8.

• Issue closes: May 11. 

• Issue price: Rs 875–920 per share.

• Fresh issue: Rs 400 crore.

• Offer for sale: Rs 1,150 crore.  

• Total issue size: Rs 1,550.81 crore.

• Market value at the upper end of price band: Rs 10,211 crore.

• Listing: BSE and NSE.

The company will use about Rs 127 crore from the proceeds to strengthen its platform, by adding new buyers and suppliers via investing in technologies and infrastructure to support their plans.

A sum of Rs 40 crore will be used for inorganic acquisitions and general corporate purposes.

TBO Tek is a leading travel distribution platform and provides services to buyers and suppliers 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 company simplifies the business of travel for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance and retail buyers, such as travel agencies and independent travel advisors.

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's revenue is substantially dependent on the hotels and ancillary bookings, whose contribution has significantly increased from 35.69% of their revenue from operations for fiscal 2021 to 67.83% for fiscal 2023.

• Any adverse changes in such relationships with their limited suppliers and an inability to enter into new relationships could adversely affect their business and results of operations.

• Their business is exposed to pricing pressure from suppliers, who may withhold inventory or modify the terms of arrangement.

• It has certain contingent liabilities that have not been provided for in their financial statements, which if they materialise, may adversely affect their financial condition.

• The company and its joint managing directors have received a show cause notice from the Enforcement Directorate and compounding applications are in the process of being filed with the Reserve Bank of India.