TBO Tek, an online travel distribution platform, is going to be the second company to hit Dalal Street with its initial public offering in the month of May, after Indegene. The IPO will open for subscription on May 8 and close on May 10, 2024, while the price band is expected to be announced by end of the current week.
The anchor book of the public issue will be opened for a day on May 7.
The public issue comprises a fresh issuance of shares worth Rs 400 crore by the company and 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 be selling 52.12 lakh equity shares via OFS, while investors TBO Korea and Augusta TBO will be offloading 72.96 lakh shares.
Promoters own 51.26 percent stake in the travel distribution platform and 46.43 percent shares are held by the public shareholders, while TBO ESOP Trust, the non-promoter non-public shareholder has 2.31 percent shareholding.
Augusta TBO is the largest public shareholder with 19.53 percent stake, followed by private equity firm General Atlantic with 15 percent stake and TBO Korea 11.06 percent.
Gaurav Bhatnagar and Ankush Nijhawan-founded TBO Tek, which claimed to be one of the leading travel distribution platforms in the global travel and tourism industry in terms of GTV and revenue from operations in FY23, will spend Rs 260 crore out of the net fresh issue proceeds for its growth and strengthening platform by adding new buyers and suppliers.
Further, Rs 40 crore will be utilised for unidentified inorganic acquisitions, and the remaining money for general corporate purposes.
TBO Tek, which follows an asset-light business model, has recorded healthy growth in its financials with profit growing 340 percent on-year to Rs 148.5 crore in the year ended March FY23 and revenue from operations rising 120.3 percent to Rs 1,064.6 crore compared to previous year.
In the nine months period ended December 2023 (the part of FY24), the company already surpassed its FY23 profits and recorded more than Rs 1,000 crore income on the topline front. Net profit grew by 28.2 percent year-on-year to Rs 154.2 crore and revenue increased by 30.7 percent to Rs 1,023.8 crore compared to nine months period of previous fiscal FY23.
In 2023, the travel and tourism industry was worth $1.9 trillion, and is expected to grow at a CAGR of approximately 8.2 percent to reach $2.6 trillion in 2027, as per the 1Lattice report.
The company has reserved 75 percent of the net public issue for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent shares for retail investors.
Meanwhile, TBO Tek will finalise the basis of allotment of IPO shares by May 13 and the equity shares will be credited to demat accounts of successful investors by May 14.
The participants can start trading in its equity shares on the BSE and NSE with effect from May 15.
Axis Capital, Goldman Sachs (India) Securities, Jefferies India, and JM Financial are the book running lead managers to the issue.
