TBO Tek IPO subscription status: The retail investor response to TBO Tek IPO is overwhelming, and within a few hours of taking off, the portion is fully booked. The IPO is receiving favourable responses from employees and non-institutional investors. TBO Tek IPO subscription status is 1.15 times, as per BSE data.
The category for retail investors got subscribed 3.14 times, while the quota for non-institutional investors received 2.08 times subscription, and the portion for Qualified Institutional Buyers (QIBs) was booked 1%. The employee portion has been subscribed 2.23 times.
The company runs an online B2B travel portal distribution network that links buyers and suppliers, according to Arun Kejriwal, the founder of Kejriwal Research and Investment Services. It is widely used in the hotel and airline industries. The airlines whose tickets are sold on the site pay it a fee, and it charges a markup on the rooms that are sold through the platform.
Since the business makes payments after receiving funds, it is in a negative working capital cycle. According to Kejriwal, the company is expanding its product line and has just included the Eurail on the platform.
For the year that ended in March 2023, the firm recorded an EPS of ₹14.07 on a fully diluted basis. Based on this EPS, the PE band would be 62.19-65.39. The mentioned businesses are essentially online travel companies like Make My Trip, Easy Trip, and Yatra Online who would be using the platform supplied by TBO Tek Limited. There is no comparable peer in India in this market.
The issue has potential for listing as well as for the medium to long term, believes Arun.
The issue that has opened for subscription today (Wednesday, May 8), will close on Friday, May 10. The issue's price band has been fixed in the range of ₹875 to ₹920 per equity share of face value of Re 1. The IPO's lot size is 16 equity shares and in multiples of 16 equity shares thereafter.
On Tuesday, May 7, TBO Tek IPO raised ₹696.5 crore from 47 anchor investors at the upper price band of ₹920 per equity share. Key marquee investors include, Abu Dhabi Investment Authority, Government Pension Fund Global (Norges), ICICI Prudential MF, Kotak Mahindra MF, Neuberger Berman, Nippon MF, Nomura, SBI MF.
TBO Tek IPO has received bids for 1,06,66,368 shares against 92,85,816 shares on offer, according to data from the BSE.
The retail investors' segment received bids for 52,75,632 shares against 16,82,401 shares on offer for this segment.
The NIIs portion got bids for 52,59,664 shares against 25,23,602 on offer for this segment.
The QIBs segment got bids for 72,608 shares against 50,47,205 on offer for this segment.
The employee segment received bids for 48,976 shares against 32,608 shares on offer for this segment.
TBO Tek IPO, which is worth ₹1,550.81 crore, comprises a fresh issue of ₹400 crore, and an offer-for-sale (OFS) of up to 12,508,797 equity shares of face value of Re 1 each by the promoters and other investors.
Promoters of the firm Manish Dhingra, LAP Travel, and Gaurav Bhatnagar announced that 52.12 lakh shares will be sold through OFS. 72.96 lakh shares of the firm will be sold by its other investors, TBO Korea and Augusta TBO, who own respective stakes of 11.06 percent and 19.53 percent.
The Red Herring Prospectus for TBO Tek's initial public offering (IPO) states that public shareholders possess 46.43 percent of the firm, while corporate promoters own 51.26 percent of this online travel distributor.
With a 19.53 percent ownership holding, Augusta TBO is the company's largest public stakeholder. 15,635,994 company shares, or 15% of the firm's total paid-up capital, are owned by General Atlantic.
TBO Korea has 11,523,854 shares in the firm, or 11.06 percent of its total ownership. 98.54 percent of the firm is owned by promoters and public shareholders, while the remaining 2.31 percent is owned by the TBO ESOP Trust, a non-promoter and non-public shareholder institution.
TBO Tek IPO grey market premium is +540. This indicates TBO Tek share price were trading at a premium of ₹540 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, TBO Tek IPO expected listing price was indicated at ₹1,460 apiece, which is 58.7% higher than the IPO price of ₹920.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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