TBO Tek Limited is launching its IPO. The IPO opens for subscription on 8th May and will close on 10th May 2024.
What does TBO Tek Limited do?
Incorporated in 2006, TBO Tek Limited is one of the leading travel distribution platforms in the global travel and tourism industry in terms of GTV and revenue from operations for Fiscal 2023 providing a wide range of offerings operating in over 100 countries by providing Buyers with comprehensive travel inventory according to the needs of their customers; and supporting a wide range of currencies along with forex assistances.
They simplify the business of travel for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, rail, and others, and retail buyers such as travel agencies and independent travel advisors, and enterprise buyers that include tour operators, travel management companies, online travel companies, super-apps, and loyalty apps.
The company’s two-sided technology platform that enables Suppliers and Buyers to transact seamlessly with each other. They have two key revenue models for their transactions, i.e., the B2B Rate Model where the company receives inventory from Suppliers on which we apply a certain mark-up and pass it on to the Buyers, and the Commission Model where the Suppliers fix the price at which they want to sell to the end traveler on which the company receives commission from the Supplier part of which the company retains and part of which share with the Buyer.
What is the issue size of the TBO Tek Limited IPO?
The 1,550.81 crore public offer of the company is a combination of a Fresh equity issue worth 400 crore and an offer for sale (OFS) worth Rs. 1150.81 crore from the existing shareholders.
Financials of TBO Tek Limited IPO (₹ crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EPS |
|---|---|---|---|---|
| March 31, 2021 | 576.16 | 176.55 | (-34.14) | (3.28) |
| March 31, 2022 | 1,271.43 | 511.93 | 33.72 | 3.32 |
| March 31, 2023 | 2,557.93 | 1,085.77 | 148.49 | 14.21 |
| December 31, 2023 | 3,754.05 | 1,039.56 | 154.18 | 15.30 |
Schedule/Timeline of TBO Tek Limited IPO
| Issue Period | 8th May to 10th May 2024 |
|---|---|
| Price band | ₹ 875 to 920 |
| Minimum Bid quantity | 16 & Multiples thereof |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | May 13, 2024 |
| Initiation of Refunds | May 14, 2024 |
| Credit of Shares | May 14, 2024 |
| Date of Listing | May 15, 2024 |
| Mandate end date | May 25, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | June 13, 2024 |
Anchor Investors Lock-In End Date (Remaining investment) August 13, 2024
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
Risk factors to consider:
Dependence on Suppliers: The company’s business depends on its relationships with a limited range of Suppliers, and any adverse changes in such relationships (For example: certain Suppliers are increasingly focused on driving online demand to their own websites and may cease to supply with the same level of access to travel inventory in the future) or inability to enter into new relationships, could adversely affect the business and results of operations.
Growing dependence on hotel bookings: The company’s revenue is substantially dependent on the hotels and ancillary bookings whose contribution has significantly increased from 35.69% of revenue from operations for Fiscal 2021 to 67.83% for Fiscal 2023 and was 72.47%for the nine months ended December 31, 2023. Factors that may negatively impact the hotels and ancillary bookings could have an adverse effect on the business, prospects, results of operations, and financial condition.
How do I apply to the TBO Tek Limited IPO?
You can apply for the TBO Tek Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
Where do I check the allotment status for TBO Tek Limited IPO?
You can check the allotment status for the TBO Tek Limited IPO on the website of the Registrar and Transfer agent.
Alternatively, you can also check the allotment status on the NSE website.