Dalal Street is set to witness TBO Tek opening its initial public offering (IPO) for subscription next week. The IPO subscription will commence on May 8 and conclude on May 10, 2024, with the price band expected to be disclosed by the end of this week. The anchor book of the public issue is set to open for a day on May 7, preceding the subscription period.
The IPO comprises a fresh issuance of shares valued at Rs 400 crore by the company, alongside an offer-for-sale (OFS) of 1,25,08,797 equity shares by promoters and investors. Promoters Gaurav Bhatnagar, Manish Dhingra, and LAP Travel will collectively sell 52.12 lakh equity shares through the OFS, while investors TBO Korea and Augusta TBO will divest 72.96 lakh shares.
Presently, promoters hold a 51.26 percent stake in the travel distribution platform, with 46.43 percent shares owned by public shareholders. TBO ESOP Trust, the non-promoter non-public shareholder, commands a 2.31 percent shareholding. Among public shareholders, Augusta TBO emerges as the largest with a 19.53 percent stake, followed by private equity firm General Atlantic with 15 percent and TBO Korea with 11.06 percent.
Founded by Gaurav Bhatnagar and Ankush Nijhawan, TBO Tek positions itself as a leading global travel distribution platform based on Gross Transaction Value (GTV) and revenue from operations in FY23. Out of the net fresh issue proceeds, the company plans to allocate Rs 260 crore towards growth and platform enhancement, including the addition of new buyers and suppliers. Additionally, Rs 40 crore will be earmarked for unidentified inorganic acquisitions, with the remainder reserved for general corporate purposes.
Operating on an asset-light model, TBO Tek has showcased robust financial performance, with profits surging 340 per cent year-on-year to Rs 148.5 crore in FY23, while revenue from operations witnessed a 120.3 per cent growth to Rs 1,064.6 crore compared to the previous year. In the nine-month period ending December 2023 (part of FY24), the company exceeded its FY23 profits and achieved a revenue surpassing Rs 1,000 crore. During this period, net profit grew by 28.2 per cent year-on-year to Rs 154.2 crore, and revenue increased by 30.7 per cent to Rs 1,023.8 crore compared to the same period in the previous fiscal year.
In terms of IPO allocation, 75 per cent of the net public issue is reserved for qualified institutional buyers, 15 per cent for non-institutional investors, and the remaining 10 percent for retail investors. The basis of IPO share allotment is expected to be finalized by May 13, with equity shares credited to successful investors’ demat accounts by May 14. Trading in TBO Tek’s equity shares on the BSE and NSE is set to commence from May 15.
Axis Capital, Goldman Sachs (India) Securities, Jefferies India, and JM Financial are serving as the book-running lead managers to the issue, overseeing the IPO process.
Source: Moneycontrol
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