TBO Tek IPO last bidding day today: Check out key things to know from RHP before investing

TBO Tek IPO continues to receive positive responses from investors on the last day of bidding today. The TBO Tek IPO has received 6.08 times subscription at 10:57 IST, as per BSE data. The quota for non-institutional investors has got 11.30 times subscription while retail investors category got subscribed 12.37 times. The portion for Qualified Institutional Buyers has fetched 1.35 times subscription, and the employee portion has been booked 8.24 times.

On the second day of bidding, the issue received 4.15 times subscription and on the first day, the IPO was booked 1.15 times.

The issue will end today (Friday, May 10), after subscriptions started on Wednesday, May 8. A price band of ₹875 to ₹920 per equity share with a face value of Re 1 has been set for the issue. 16 equity shares make up each lot in the IPO, and afterward, there will be multiples of 16 equity shares.

Also Read: TBO Tek IPO day 3: GMP, subscription status to review. Should you apply?

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.

The company plans to use the net proceeds from the offering to fund its objectives of: growing the base of suppliers and buyers; enhancing the value of our platform by introducing new business lines; achieving inorganic growth through strategic acquisitions and forming alliances with our current platform; and utilising acquired data to provide our suppliers and buyers with customised travel options.

Here are key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.

Also Read: TBO Tek IPO continues to see strong demand from retail, NIIs on day 2; issue booked 4.15 times. Check GMP

TBO Tek IPO Promoters

As of the Red Herring Prospectus date, the promoters of the company are Ankush Nijhawan, Gaurav Bhatnagar, Manish Dhingra, Arjun Nijhawan, and LAP Travel Private Limited. Together, they hold 53,433,326 equity shares, or 51.26% of the issued, subscribed, and paid-up equity share capital of the business.

TBO Tek IPO shareholders 

According to the Red Herring Prospectus for the company's IPO, corporate promoters own 51.26 percent of TBO Tek, while public shareholders hold 46.43 percent of this online travel distributor.

Augusta TBO is the company's largest public shareholder, owning 19.53 percent of the shares. 15,635,994 company shares, or 15% of the firm's total paid-up capital, are owned by General Atlantic.

TBO Korea is the owner of 11,523,854 shares, representing 11.06 percent of the company's total holdings. The remaining 2.31 percent of the corporation is owned by the TBO ESOP Trust, a non-public shareholder and promoter entity; promoters and public shareholders control 98.54 percent.

TBO Tek IPO Peers

The company's globally listed counterparts include Travel CTM (P/E of 28.34), Webjet Ltd (P/E of 213.16), and RategainTravel Technologies Ltd (P/E of 113.31), which is its Indian listed peer.

Also Read: TBO Tek IPO day 1: GMP, subscription status, review, other details of General Atlantic-backed IPO. Apply or not?

TBO Tek Ltd business

Travel distribution platform TBO Tek Limited, formerly known as Tek Travels Private Limited, provides travel inventory based on client demands and supports many currencies in addition to providing FX assistance.

Through its two-sided technology platform, which facilitates seamless communication between suppliers and customers, the company streamlines the travel industry for a range of clients, including corporate clients like tour operators, travel management companies, online travel companies, hotels, airlines, car rentals, transfers, cruises, insurance, rail companies, and others, as well as retail clients like travel agencies and independent travel consultants.

TBO Tek Ltd Industry

The business operates in the travel and tourism sector. The travel and tourism sector has evolved over the past century from a simple point-to-point travel solution to an ecosystem that serves both individual and business travelers (B2C and B2B), providing comprehensive solutions that encompass a range of customer needs and preferences throughout the entire travel experience. In 2017, the travel and tourism market was valued at US$ 1.7 trillion. The travel and tourism sector rebounded in 2023, rising 18.2% annually from 2022 to US$ 1.9 trillion. Growth at a compound annual growth rate (CAGR) of 8.2% is predicted to reach US$ 2.6 trillion by 2027.

TBO Tek IPO Financial

Between the fiscal year ending on March 31, 2022, and March 31, 2023, the company's revenue climbed by 112.09% and its profit after tax (PAT) increased by 340.4%.

TBO Tek IPO Lock-in of equity shares allotted to anchor investors

Within the 90-day period following the date of allocation, 50% of the Equity Shares allotted to Anchor Investors under the Anchor Investor Portion will be locked-in, and the remaining Equity Shares will be locked-in for 30 days following the date of Allotment.

Also Read: TBO Tek IPO: Here are 10 key risks from the RHP you should know before subscribing

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