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TBO Tek’s initial public offer (IPO) is set to open on May 8. The Rs 1,550.81- crore issue is a mix of a fresh issue of 43.48 lakh shares and an offer-for-sale of 1.25 crore shares. The company mobilised Rs 696.51 crore via anchor book on May 7.
Here are ten key things to know before subscribing to the offer:
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1) IPO dates
The IPO will open for subscription on May 8 and close on May 10, 2024.
2) Price band
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The price band for the issue has been fixed at Rs 875-920 per share.
3) Offer details
The Rs 1,550.81-crore issue is a mix of fresh issue of shares worth Rs 400 crore and an offer-for-sale of shares worth Rs 1,150.81 crore. Promoters Gaurav Bhatnagar, Manish Dhingra, and LAP Travel will be selling 52.12 lakh equity shares via OFS, while investors TBO Korea and Augusta TBO will be offloading 72.96 lakh shares.
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4) Objectives of issue
The company will spend fresh issue proceeds worth Rs 260 crore for its growth and strengthening its platform by adding new buyers and suppliers. Further, Rs 40 crore will be utilised for unidentified inorganic acquisitions, and the remaining funds for general corporate purposes.
Also Read:Â General Atlantic-backed TBO Tek IPO to hit Dalal Street on May 8
5) Lot Size
Investors can bid for a minimum of 16 equity shares and multiples of 16 after that. Hence the minimum investment by retail investors would be Rs 14,000 (16 (Lot size) x 875 (lower price band)). At the upper end, the bidding amount will increase to Rs 14,720.
6) Company profile
TBO Tek is one of the leading travel distribution platforms in the global travel and tourism industry in terms of gross transaction value (GTV) and revenue from operations for FY23 providing a wide range of offerings operating in over 100 countries by providing buyers with a comprehensive travel inventory according to the needs of their customers, and supporting a wide range of currencies along with forex assistance.
7) Financials
The company recorded healthy growth in its financials, with profit growing 340 percent on-year to Rs 148.5 crore in FY23 and revenue from operations rose 120.3 percent to Rs 1,064.6 crore compared to the previous year.
In the nine months ended December 2023 (the part of FY24), the company already surpassed its FY23 profits and recorded more than Rs 1,000-crore topline. Net profit grew by 28.2 percent on-year to Rs 154.2 crore and revenue increased by 30.7 percent to Rs 1,023.8 crore compared to nine months of FY23.
8) BRLMs & promoters
The book-running lead managers to the IPO are Axis Capital, Jefferies India, Goldman Sachs (India) and JM Financial while Kfin Technologies is the registrar.
Ankush Nijhawan, Gaurav Bhatnagar, Manish Dhingra, Arjun Nijhawan and LAP Travel are the promoters of the company.
9) Risks
(i) The business depends on relationships with a limited range of suppliers. The top 10 suppliers contributed 68.23 percent to the total GTV.
(ii) The company operates in a highly competitive industry. If competitors expand their product offerings, suppliers and buyers may use their platforms instead of TBO Tek’s.
10) Listing Date
The basis of allotment will be finalised by May 13, shares will be credited to demat accounts by May 14 and the stock will be listed on the NSE and BSE on May 15, as per the RHP.
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