The initial public offer ( IPO) of TBO Tek opened for public subscription today and will close on May 10. The company plans to raise Rs 1,550 crore through the issue.
Net proceeds from the fresh issue are proposed to be utilised towards growth and strengthening of the platform by adding new buyers and suppliers, unidentified inorganic acquisitions and general corporate purposes.
TBO Tek IPO preview
Analysts advised investors to subscribe to the issue over consistent growth shown in the last two fiscal years.
"While the P/E valuation of 64x appears fully priced, the lack of direct peers makes a definitive comparison challenging. Considering TBO Tek's growth potential and potential listing gains, we recommend a subscribe rating for this IPO," said Swastika Investmart.
TBO Tek IPO price band
TBO Tek has fixed a price band of Rs 875-920 per share for its maiden public offer. Investors can bid for 16 shares in one lot and in multiples thereafter.
Also Read: Aadhar Housing Finance raises nearly Rs 900 cr from anchor investors
About 75% of the IPO is reserved for qualified institutional buyers, 15% for non-institutional investors and the rest 10% for retail investors.
TBO Tek GMP
Ahead of the issue opening, the company's shares traded with a premium of Rs 520 in the unlisted market.
Other details
TBO simplifies the business of travel for suppliers such as hotels, airlines and retail buyers such as travel agencies and enterprise buyers that include tour operators, travel management companies through the two-sided technology platform that enables suppliers and buyers to transact seamlessly with each other.
The platform connects over 147,000 buyers across more than 100 countries with over one million suppliers, as of June 2023. Recently, leading investment firm General Atlantic had acquired a minority stake in TBO.
In 2023 the travel and tourism industry is estimated to recover at pace, growing 18% year-on-year from 2022 to reach $1.9 trillion, and is expected to grow at a CAGR of 8.2% to reach $2.6 trillion in 2027.
Axis Capital, Goldman Sachs (India), Jefferies India and JM Financial are the book running lead managers of the issue. The equity shares are proposed to be listed on NSE and BSE.
Net proceeds from the fresh issue are proposed to be utilised towards growth and strengthening of the platform by adding new buyers and suppliers, unidentified inorganic acquisitions and general corporate purposes.
TBO Tek IPO preview
Analysts advised investors to subscribe to the issue over consistent growth shown in the last two fiscal years.
"While the P/E valuation of 64x appears fully priced, the lack of direct peers makes a definitive comparison challenging. Considering TBO Tek's growth potential and potential listing gains, we recommend a subscribe rating for this IPO," said Swastika Investmart.
TBO Tek IPO price band
TBO Tek has fixed a price band of Rs 875-920 per share for its maiden public offer. Investors can bid for 16 shares in one lot and in multiples thereafter.
Also Read: Aadhar Housing Finance raises nearly Rs 900 cr from anchor investors
About 75% of the IPO is reserved for qualified institutional buyers, 15% for non-institutional investors and the rest 10% for retail investors.
TBO Tek GMP
Ahead of the issue opening, the company's shares traded with a premium of Rs 520 in the unlisted market.
Other details
TBO simplifies the business of travel for suppliers such as hotels, airlines and retail buyers such as travel agencies and enterprise buyers that include tour operators, travel management companies through the two-sided technology platform that enables suppliers and buyers to transact seamlessly with each other.
The platform connects over 147,000 buyers across more than 100 countries with over one million suppliers, as of June 2023. Recently, leading investment firm General Atlantic had acquired a minority stake in TBO.
In 2023 the travel and tourism industry is estimated to recover at pace, growing 18% year-on-year from 2022 to reach $1.9 trillion, and is expected to grow at a CAGR of 8.2% to reach $2.6 trillion in 2027.
Axis Capital, Goldman Sachs (India), Jefferies India and JM Financial are the book running lead managers of the issue. The equity shares are proposed to be listed on NSE and BSE.
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