TBO Tek’s share price surged by 50% in early trading on Wednesday, opening at ₹1,380 apiece, significantly higher than the issue price of ₹920.
During the final day of subscriptions, TBO Tek’s initial public offering was oversubscribed by a staggering 86.70 times, according to NSE data. The segment allocated for qualified institutional buyers (QIBs) received subscriptions 125.51 times over, while the non-institutional investor group saw subscriptions 50.60 times over. Retail individual investors (RIIs) subscribed 25.74 times over.
The IPO, valued at ₹1,550.81 crore, consists of a fresh issue of ₹400 crore and an offer-for-sale (OFS) of up to 12,508,797 equity shares by the promoters and other investors. The company’s promoters, including Manish Dhingra, LAP Travel, and Gaurav Bhatnagar, will offer 52.12 lakh shares through OFS. Additionally, Augusta TBO and TBO Korea, holding respective stakes of 19.53% and 11.06%, will sell 72.96 lakh shares.
TBO Tek streamlines the travel industry for various stakeholders, including lodging facilities, airlines, rental cars, transfers, cruise lines, and insurance companies. The company’s IPO proceeds will be utilized to expand the network of buyers and suppliers, enhance platform value, offer customized travel solutions, and pursue inorganic growth through strategic acquisitions.
Axis Capital Limited, Jefferies India Private Limited, Goldman Sachs (India) Securities Private Limited, and JM Financial Limited are the book running lead managers for the IPO, while KFin Technologies Limited serves as the issue registrar.
The grey market premium (GMP) for TBO Tek’s IPO stands at +350, indicating a significant premium over the issue price. The expected listing price is ₹1,270 per share, representing a 38.04% increase over the IPO price.
