TBO Tek Ltd IPO: Review, Valuation, Opening Date & Todays GMP

TBO Tek Limited IPO  - Complete Overview

Established in 2006, TBO Tek Limited stands as a prominent player in the global travel and tourism industry, boasting significant Gross Transaction Value (GTV) and revenue from operations for Fiscal 2023.

Operating across more than 100 countries, the company caters to buyers by offering a comprehensive travel inventory tailored to their customers' needs, while also providing support for a wide range of currencies and forex assistance.

TBO Tek make the travel business simple for suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, rail, and retail buyers including travel agencies and independent travel advisors. 

It also serves enterprise buyers like tour operators, travel management companies, online travel companies, super-apps, and loyalty apps. This is achieved through its two-sided technology platform, facilitating seamless transactions between suppliers and buyers.

The platform enables suppliers to efficiently display and market their inventory, set prices, and connect with a global base of buyers, which is large and fragmented.

For buyers, the platform offers an integrated, multi-currency, and multi-lingual solution, serving as a one-stop shop for discovering and booking travel across various segments such as leisure, corporate, and religious travel.

As of December 31, 2023, the company's platform provided suppliers with instant access to over 159,000 buyers spanning over 100 countries. Additionally, the company facilitated access to inventory from over 750 airlines.

TBO Tek Limited IPO Overview:

TBO Tek Limited's IPO date is slated to be open for subscription from May 8, 2024, to May 10, 2024. This BSE, NSE IPO follows a Book Built Issue IPO.

TBO Tek Limited IPO price is fixed in the range of Rs.875 to Rs.920 per share. 

The total issue size of this IPO amounts to Rs.1,550.81 Cr. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non-institutional investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, TBO Tek Limited has seen growth in total assets, net worth, and total revenue. The profit after tax and the total borrowing have increased.

(Amount in crores)

Period	31 Dec 2023	31 Mar 2023	31 Mar 2022
Total Assets	3,754.05	2,557.93	1,271.43
Total Revenue	1,039.56	1,085.77	511.93
PAT	154.18	148.49	33.72
Net worth	501.21	337.19	231.90
Reserve & Surplus	478.43	317.57	214.08
Total Borrowings	2.93	6.36	2.69

 

Operation-wise Revenue Break up

(Amount in million) 

Category	31 Dec. 2023	FY 23	FY 22
Air	2,595.81	3,205.03	1,935.72
Hotels and ancillary	7,418.74	7,221.56	2,754.88

 

Region-wise Revenue Break up

(Amount in million)

Region	FY 21	FY 22	FY 23
India	967.49	2,247.79	3,983.87
Middle East And Africa	247.02	1,299.66	3,404.11
Europe	52.17	366.57	1,467.01
Latin America	46.81	412.45	938.64
North America	36.82	317.91	506.87
Asia Pacific	67.74	188.30	345.37
Total	1,418.06	4,832.68	10,645.87

 

 

 

The Objective of the Issue

The company will utilised the fund to fulfill the following objectives:

• Expansion of the Supplier and Buyer base

• Amplification of value of the platform by adding new lines of businesses

• Inorganic growth through selective acquisitions and building synergies with the existing platform

• Leveraging data procured to offer bespoke travel solutions to the Buyers and Suppliers
  
  

Peers of TBO Tek Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
TBO Tek Limited	1.00	-	14.07
RategainTravel Technologies Limited	1.00	113.31	6.33
Global Peers
Travel CTM	-	28.34	28.04
WebjetLtd	-	213.16	2.01

 

Evaluation

The IPO is priced within the range of Rs.875 to Rs.920 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 14.07 from the last year, the resulting P/E ratio is 65.38x.

• Taking into account the weighted EPS of Rs 7.60 for the last three years, the P/E ratio amounts to 121.05x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 118.03x.

As a result, the IPO price range, with a P/E ratio ranging from 65.38x to 121.05x, seems aggresively priced to the industry average of 118.03x.

IPO's Strengths 

• The platform creates a network effect by integrating interconnected mechanisms to enhance the value proposition for partners.

• It utilizes a modular and scalable proprietary technology platform, enabling the seamless addition of new lines of business, markets, and travel products.

• The company has the capability to generate and leverage large data assets, facilitating data-driven decision-making across the enterprise.

• Led by its founders and supported by an experienced professional management team with extensive expertise in both travel and technology, the company is positioned for success.

• The business model is capital-efficient, achieving sustainable growth through a combination of strategies.
  
  

 

 

IPO weaknesses 

• The company's business faces pricing pressure from its suppliers, who may choose to withhold inventory or change their contractual terms.

• Certain contingent liabilities exist that have not been accounted for in the company's financial statements.

• The Company's Joint Managing Directors, Ankush Nijhawan and Gaurav Bhatnagar, have received a show cause notice from the Enforcement Directorate.

• Operating within a highly competitive industry, the company faces intense market rivalry.

• A significant portion of the company's Gross Transaction Value (GTV) and revenue comes from operations in a limited number of markets outside India. Any adverse developments in these markets could negatively impact its business.

• The company's international operations are exposed to risks that vary depending on the specific country and region in which it operates.
  
  

IPO GMP Today

The Latest GMP of TBO Tek Limited is Rs. 540.

TBO Tek Limited IPO timetable (Tentative)

TBO Tek Limited IPO is scheduled from May 8 to May 10, 2024, with allotment on May 13, refund initiation on May 14, and listing on May 15, 2024.

Events	Date
IPO Opening Date	May 8, 2024
IPO Closing Date	May 10, 2024
IPO Allotment Date	May 13, 2024
Refund initiation	May 14, 2024
IPO Listing Date	May 15, 2024

 

 

 

TBO Tek Limited IPO Details 

TBO Tek Limited IPO, with a face value of Rs.1 per share, opens on May 8 and closes on May 10, 2024, offering 16,856,623 shares at Rs.875 to Rs.920 per share, with a lot size of 16 shares, aiming to raise Rs.1,550.81 Cr, and will be listed on BSE, NSE.

IPO opening & closing date	May 8, 2024 to May 10, 2024
Face value	Rs. 1 per share
Issue Price	Rs. 875 to Rs. 920 per share
Lot Size	16 Shares
Price of 1 lot	Rs. 14,720
Issue Size	16,856,623 shares (aggregating up to ₹1,550.81 Cr)
Offer for sale	12,508,797 shares of ₹1 (aggregating up to ₹1,150.81 Cr)
Fresh issue	4,347,826 shares (aggregating up to ₹400.00 Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Kfin Technologies Limited

TBO Tek Limited IPO Lot Details 

For TBO Tek Limited IPO, the retail investor can invest in minimum 1 lot (16 shares) at Rs.14,720 and maximum 13 lot (208 shares) at Rs.191,360 while for HNI investors, the minimum investment is 14 lots (224 shares) at Rs.206,080.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	13 lot
Minimum Lot Investment (HNI)	14 lot
Maximum Lot Investment (HNI)	67 lot

TBO Tek Limited IPO Reservation

Institutional share Portion	75%
Non-institutional share Portion	15%
Retail share Portion	10%

 

Promoters and Management of TBO Tek Limited

• Ankush Nijhawan

• Gaurav Bhatnagar

• Manish Dhingra

• Arjun Nijhawan

Pre-issue Promoter shareholding	51.26%
Post-issue Promoter shareholding

 

TBO Tek Limited IPO Lead Managers

• Axis Capital Limited

• Jefferies India Private Limited

• Goldman Sachs (India) Securities Private Limited

• Jm Financial Limited 
  
  

Dividend Policy

The company did not pay any dividend in the past years.

 

 

Conclusion

The company operates in a competitive industry; however, it boasts a strong global presence and consistently generates substantial revenue. Seasoned investors may consider applying in the upcoming IPO after thoroughly evaluating all factors to potentially maximize gains.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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