TBO Tek Eyes Rs 1,550 Cr Via IPO; Issue Opens On 08 May

TBO Tek, a B2B travel distribution company opened its initial public offering (IPO) for public bids on 08 May with an attempt to raise over Rs 1,550  crore with its combination of fresh issue and offer-for-sale component (OFS). 

The IPO window for public subscription will remain open from 08 May to 010 May. The allotment for the issue is scheduled on 13 March, followed by listing on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 15 May. 

TBO Tek Rs 1,550.81 book-built issue consisted of fresh issuance worth Rs 400 crore and OFS worth Rs 1,150 crore with a price band of Rs 875 to 920.

Retail investors can bid for one lot consisting of 16 shares with the minimum investment amount of Rs 14,720 and multiples thereafter to a maximum of 13 lots. 

Analyst Note

“On valuation parse at the upper band of Rs 920, the issue is asking for a Market Cap of Rs 9990 crore. Based on annualised FY 2024 earnings and fully diluted post-IPO paid-up capital, the company is asking a price to earnings (PE) of 48.6 times which seems reasonable by looking at industry growth. Hence, considering all the parameters, we are recommending investors to ‘Subscribe’ the issue for listing gain only,” Rajan Shinde, Research Analyst, Mehta Equities.

With innovative platform, strategic approach to data utilization and commitment to fostering a collaborative ecosystem solidifying their position in the dynamic travel and tourism industry with significant growth potential. 

Axis Capital, Jefferies India, Goldman Sachs Securities, JM Financial are the book running lead managers, while Kfin Technologies is the registrar to the issue. 

The promoters cumulatively own over 51.26 per cent stake in the firm which will be further diluted post-IPO.

IPO Objectives

The company proposed to utilise net proceeds of Rs 400 crore for the expansion of supplier and buyer base and amplification of value to its platform by adding new lines of businesses. 

Additionally, the firm will also aim for inorganic growth though selective acquisitions and building synergies with its existing platform along with general corporate purposes. 

Firm’s Financials

The firm registered revenue of Rs 1,085.77 crore in FY23, compared to Rs 511.93 crore in FY22. The firm’s profit after tax (PAT) increased to Rs 148.49 crore in FY23 compared to Rs 33.72 crore in FY22. Overall, revenue and PAT increased by 112.09 per cent and 340.4 per cent respectively.