TBO Tek’s IPO subscription will commence on May 8, attracting a subscribe rating from several brokerages due to its capital-efficient business model and sustainable growth prospects.
Here are the offer details: The IPO, valued at Rs 1,550.81 crore, consists of a 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 sell 52.12 lakh equity shares via OFS, while investors TBO Korea and Augusta TBO will offload 72.96 lakh shares. The price band for the issue, open until May 10, is set at Rs 875-920 per share.
TBO Tek plans to utilize the proceeds from the fresh issue for growth initiatives, including strengthening its platform and potential acquisitions, among other corporate purposes.
TBO Tek is a prominent player in the global travel and tourism industry, offering a wide range of services in over 100 countries, catering to diverse customer needs and supporting various currencies.
Analysts’ Recommendations:
- Swastika Investmart recommends subscribing to the IPO, citing TBO Tek’s consistent growth and potential listing gains despite certain vulnerabilities in its reliance on limited suppliers and external industry factors.
- Marwadi Financial Services also suggests subscribing, highlighting the company’s capital-efficient model and reasonable valuation compared to peers.
- Ventura Securities advises subscribing, emphasizing TBO Tek’s role as a facilitator in the travel ecosystem and its positive impact on airlines, hotels, and travel agents.
Anchor Investors:
TBO Tek attracted Rs 696.51 crore through an anchor book, with participation from global investors like Abu Dhabi Investment Authority, Government Pension Fund Global, and domestic mutual fund houses.
Financial Performance:
In FY23, TBO Tek witnessed significant growth, with a 340 percent increase in profit and a 120.3 percent rise in revenue compared to the previous year. By the end of December 2023, the company had already surpassed its FY23 profits and achieved over Rs 1,000 crore in revenue for FY24.
Disclaimer: Investors are advised to consult certified experts before making any investment decisions.
