TBO Tek, which was earlier known as Tek Travels Private Limited, is all set to launch its initial public offerings (IPO) next week. The IPO of travel distribution platform will open for subscription on May 8 and will remain till May 10.
Ahead of opening of the issue, the shares of TBO Tek are commanding a premium of ₹520 in the grey market, according to market observers. This means that the estimated listing price of TBO Tek shares could be ₹1440, which is 56.52 per cent more than the IPO price of ₹920.
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As per investorgain.com, the lowest GMP of TBO Tek IPO is ₹0, while the highest GMP is ₹520.
The TBO Tek IPO‘s price range is set between ₹875 and ₹920 per equity share, with the company aiming to generate ₹1,550.81 crore through IPO.
TBO Tek IPO details
The IPO comprises a new issuance of 0.43 crore shares valued at ₹400.00 crores and an offer-for-sale segment of 1.25 crore shares valued at ₹1,150.81 crores.
The issue is being conducted via the book-building process, with a maximum of 75% of the net issuance earmarked for allocation to Qualified Institutional buyers in a proportional manner, 15% for non-institutional investors, and at least 10% of the net issuance allocated to retail investors on a proportional basis.
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The minimum lot size required for an application is 16 shares, necessitating a minimum investment of ₹14,720 for retail investors to partake in the IPO. For Non-Institutional Investors (NIIs), the minimum lot size investment comprises 14 lots (equivalent to 224 shares), totaling ₹206,080, while for Big Non-Institutional Investors (NIIs), it consists of 68 lots (1,088 shares), totaling ₹1,000,960.
The company intends to utilize the net proceeds generated from the issue to bolster several objectives. These encompass broadening the supplier and buyer base, elevating the platform’s worth by introducing fresh lines of businesses, pursuing inorganic growth via targeted acquisitions, and nurturing synergies with the current platform.
Axis Capital Limited, Jefferies India Private Limited, Goldman Sachs (India) Securities Private Limited, and JM Financial Limited are the book-running lead managers for the TBO Tek IPO, while KFin Technologies Limited has been appointed as the registrar for the issue.
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TBO Tek stands out as a premier travel distribution platform within the global travel and tourism sector for the fiscal year 2023. It holds a prominent position in terms of Gross Transaction Value (GTV) and operational revenue. Operating across more than 100 countries, TBO Tek offers a diverse array of services, catering to the varied needs of its customers. Its extensive travel inventory ensures that buyers can access comprehensive options tailored to their clients’ requirements. Additionally, the platform facilitates transactions in numerous currencies, providing foreign exchange assistance to further streamline the booking process.
