According to ET, the money raised from the IPO will be used to grow and strengthen the TBO Tek platform by attracting more buyers and suppliers.It will also fund unidentified organic acquisitions and cover general corporate expenses.
TBO Tek IPO: What analysts say
Analysts suggest that investors should subscribe to the IPO because TBO Tek has shown steady growth over the last two years. Swastika Investmart recommends subscribing despite the high P/E ratio of 64x, noting that there’s no direct competitor for comparison. Given the company’s growth prospects and the likelihood of gains when the shares start trading, they advise subscribing to the IPO.
TBO Tek IPO price details
TBO Tek’s IPO has a price range of Rs 875-920 per share. Investors must buy at least 16 shares, with the option to buy more in multiples of 16.
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The IPO allocation is divided as follows: 75% for large institutional investors, 15% for non-institutional investors, and 10% for retail investors.
TBO Tek GMP
Before the IPO officially opened, TBO Tek’s shares were selling at a premium of Rs 520 in the unlisted market.
About TBO Tek
TBO Tek makes it easier for travel suppliers, like hotels and airlines, to do business with retail buyers such as travel agencies and tour operators. The company’s platform connects suppliers and buyers, allowing them to work together smoothly.
As of June 2023, TBO Tek’s platform linked more than 147,000 buyers across over 100 countries with over one million suppliers. The investment firm General Atlantic recently acquired a minority stake in TBO.
The travel and tourism industry is expected to rebound strongly in 2023, growing 18% from 2022 to reach $1.9 trillion. By 2027, the industry is projected to grow at an annual rate of 8.2%, reaching $2.6 trillion.
Book running lead managers
The IPO is being managed by Axis Capital, Goldman Sachs (India), Jefferies India, and JM Financial. The shares from the IPO are expected to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).