TBO Tek IPO Day 2: Almost every category was fully booked on the first day of TBO Tek IPO, indicating a successful start to the event. The response to yesterday’s inauguration was so positive that within hours of its opening, the retail section was fully booked. An IPO was well received by employees as well as non-institutional investors. The impetus is still being felt by qualified institutional purchasers. Data from the BSE indicates that the TBO Tek IPO subscription status was 1.15 times.
TBO Tek IPO Day 2, 2.08 subscriptions were received by the non-institutional investor quota, 3.14 subscriptions were received by the retail investor category, and 1% of the subscriptions were booked for qualified institutional buyers (QIBs). The employee section currently has 2.23 subscribers.
For vendors including lodging facilities, airlines, auto rentals, transportation services, cruise lines, insurance, train firms, and so forth, the organization simplifies the travel sector. It also serves business clients including tour operators, travel management firms, online travel agencies, super apps, and loyalty apps, as well as retail clients like travel agencies and independent travel advisors. The smooth communication enabled by the two-sided technological platform benefits each of these parties individually.
The company is expanding its product range, according to Arun Kejriwal, founder of Kejriwal Research and Investment Services, and it recently added the Eurail to its platform.
The company said that its EPS for the year ended in March 2023 was ₹14.07 on a fully diluted basis. Using this EPS as a basis, the PE band would be 62.19-65.39 TBO Tek Limited’s platform will be utilized by the listed organizations, which are essentially online travel providers like Yatra Online, Easy Trip, and Make My Trip. Comparable peers in this market do not exist for India. In the medium to long term, Arun says, the issue has the potential to be listed.
The TBO Tek initial public offering (IPO) will finish on Friday, May 10, having opened for registration yesterday, Wednesday, May 8.
Details of TBO Tek’s IPOÂ
The founders and other investors will offer up to 12,508,797 equity shares with a face value of Re 1 each as part of the ₹1,550.81 crore TBO Tek IPO. Additionally, a new issuance of ₹400 crore will also be included.
Manish Dhingra, LAP Travel, and Gaurav Bhatnagar, the promoters, have announced that 52.12 lakh shares of the firm will be auctioned through OFS. 72.96 lakh shares of the company will be sold by its other investors, TBO Korea and Augusta TBO, who own respective interests of 19.53 percent and 11.06 percent.
According to the Red Herring Prospectus for the company’s IPO, corporate promoters own 51.26 percent of TBO Tek, while public stockholders possess 46.43 percent of this online travel distributor.
Augusta TBO is the company’s largest public shareholder, owning 19.53 percent of the shares. 15,635,994 company shares, or 15% of the firm’s total paid-up capital, are owned by General Atlantic.
TBO Korea is the owner of 11,523,854 shares, or 11.06 percent of the company’s total holdings. The remaining 2.31 percent of the corporation is owned by the TBO ESOP Trust, a non-public shareholder and promoter entity; promoters and public shareholders control 98.54 percent.
TBO Tek IPO Analysis
Indsec Securities
According to the brokerage, the post-issue valuation of the TBO Tek IPO is 52.8x TTM P/B and 7.7x FY23 P/S at the upper price range. The brokerage believes the issue is well valued and has upside potential. Its nearest rival, RateGain Travel Technologies, is valued at 61.1x TTM P/E and 8.9x TTM P/S. The brokerage has a “Subscribe” rating on the firm because of the volume it can manage through its platform and the expansion of additional business lines that satisfy the needs of suppliers & buyers. It is anticipated that the travel and tourism market would increase at an 8.2% CAGR between FY23 and FY27, placing TBO Tek in a strong position to handle the highly fragmented business environment and address new needs using tech-based learnings.
Canara Bank Securities Ltd
The brokerage firm estimates that the company is worth 64.74x P/E for FY2023; this price seems fair considering the absence of directly comparable domestic competitors and the company’s anticipated vital position in profiting from the expanding travel sector penetration.
Conversely, the company’s acknowledged competitors in the sector include Yatra Online and Easy Trip Planners. Easy Trip Planners offers an extensive array of travel-related products and services under the primary brand, “Ease My Trip.” On the other hand, Yatra Online specializes in providing both domestic and foreign customers with comprehensive information, details about costs, availability, and booking alternatives. The brokerage suggests subscribing to the issue in order to earn from listing profits due to the increasing degree of competition.
TBO Tek IPO GMP today
+540 is the TBO Tek IPO gray market premium. This suggests that, according to investorgain.com, the price of TBO Tek shares were selling at a premium of ₹540 on the black market.
With the upper end of the IPO price range and the existing premium in the grey market taken into account, the predicted listing price for TBO Tek was ₹1,460 per share, which is 58.7% more than the IPO price of ₹920.
Investors’ willingness to pay over the issue price is shown by the “grey market premium.”
(Disclaimer: This is not a Businessuncover endorsement; rather, the opinions and suggestions expressed above are those of specific analysts, specialists, and brokerage firms. Before making any financial decisions, we suggest investors to consult with qualified specialists.)
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