TBO Tek IPO to open for subscription on May 8; Check details
TBO Tek IPO
TBO Tek IPO: A Detailed Look at the Travel Distribution Platform’s Public Offering
As the travel industry embraces the digital revolution, online travel distribution platforms like TBO Tek are poised for significant growth. With its upcoming IPO on the horizon, TBO Tek presents a potentially lucrative opportunity for investors seeking exposure to this dynamic sector.
This news article delves deeper into the details of the TBO Tek IPO, analyzing its key features, fund utilization plans, and the company’s impressive financial performance.
Navigating the IPO Landscape:
The TBO Tek IPO is scheduled to open for subscription on May 8th, 2024, following Indengine’s recent offering. Investors will have a window of opportunity until May 10th to participate.
The price band for this public issue is expected to be announced by the end of the week, providing crucial information for potential investors.
Notably, anchor investors will have the chance to subscribe on May 7th, with share allotment finalized by May 13th and credited to demat accounts by May 14th.
Understanding the Share Distribution:
The IPO will involve a fresh issue of new shares worth Rs 400 crore. Additionally, there will be an Offer for Sale (OFS) of 1,25,08,797 equity shares by existing promoters and investors.
This includes 52.12 lakh shares from promoters Gaurav Bhatnagar, Manish Dhingra, and LAP Travel, while investors TBO Korea and Augusta TBO will offer 72.96 lakh shares.
Currently, promoters hold a 51.26% stake in the company, with public shareholders accounting for 46.43%. Interestingly, the non-promoter non-public shareholder TBO ESOP Trust holds a 2.31% shareholding.
Among public shareholders, Augusta TBO stands as the largest with a 19.53% stake, followed by private equity firm General Atlantic with 15% and TBO Korea with 11.06%.
To ensure fair distribution, the company has reserved 75% of the public issue for qualified institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors.
Axis Capital, Goldman Sachs (India) Securities, Jefferies India, and JM Financial will be spearheading the IPO as the book running lead managers.
Fueling Growth and Expansion:
TBO Tek, founded by Gaurav Bhatnagar and Ankush Nijhawan, boasts a leading position in the global travel distribution landscape, measured by both Gross Travel Value (GTV) and Revenue from Operations in FY23.
The company has outlined a clear plan for utilizing the funds raised through the IPO. Rs 260 crore will be strategically allocated towards driving growth and strengthening its platform by attracting new buyers and suppliers.
Additionally, Rs 40 crore will be directed towards undisclosed inorganic acquisitions, with the remaining funds fueling general corporate purposes.
Financial Strength and Impressive Performance:
Operating under an asset-light business model, TBO Tek has consistently demonstrated impressive growth. The company’s profit witnessed a remarkable 340% year-on-year surge to Rs 148.5 crore in the year ending March FY23. Similarly, revenue experienced a significant 120.3% increase compared to the previous year, reaching Rs 1,064.6 crore.
Furthermore, TBO Tek has already surpassed its FY23 profit target, generating over Rs 1,000 crore in income for the nine-month period ending December 2023.
During this period, net profit also witnessed a positive 28.2% year-on-year growth, reaching Rs 154.2 crore, while revenue climbed 30.7% to Rs 1,023.8 crore compared to the same period in the previous fiscal year.
Investment Considerations:
TBO Tek’s strong market position, asset-light model, and demonstrably strong financial performance make it a potentially attractive investment opportunity for individuals interested in the travel and tourism sector.
However, it is crucial for investors to conduct thorough due diligence by meticulously analyzing the company’s prospectus and financial statements before making any investment decisions.
The price band announcement, which will be released shortly, will offer further insights into the IPO valuation and potential returns. Additionally, market conditions and overall investor sentiment can significantly influence the success of the offering.
Final Remarks:
The TBO Tek IPO presents a unique opportunity for investors to participate in the growth trajectory of a leading player in the online travel distribution space.
With its strategic fund allocation plans, impressive financial performance, and established market presence, TBO Tek holds the potential to be a valuable addition to any investment portfolio focused on the dynamic travel and tourism sector.
However, careful consideration of the company’s financials, market conditions, and individual investment goals remains paramount before making any investment decisions.
