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May 4, 2024

TBO Tek’s INR 1,551 Cr IPO: Opening on May 8 – Here’s What You Need to Know

Travel Boutique Online, also known as TBO Tek, is gearing up for its highly anticipated initial public offering (IPO) with a price band set between INR 875 and INR 920 per equity share. The IPO, scheduled to open on May 8 and close on May 10, is expected to raise a whopping INR 1,551 Cr for the B2B travel portal.

With the approval from the Securities and Exchange Board of India (SEBI) secured last week, TBO Tek’s IPO comprises a fresh issue of shares worth up to INR 400 Cr and an offer for sale (OFS) component of 1.25 Cr equity shares. The company plans to allocate 75% of the IPO to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 10% to retail investors, with a minimum bid requirement of 16 equity shares.

As part of the OFS, key stakeholders including promoters Gaurav Bhatnagar, Manish Dhingra, LAP Travel, TBO Korea, and Augusta TBO will divest a portion of their stakes. Additionally, eligible employees have been reserved up to INR 3 Cr for subscription.

The utilization of the IPO proceeds is earmarked towards fortifying TBO Tek’s platform by enhancing technology and data solutions, with INR 135 Cr allocated for this purpose. Another significant investment of INR 100 Cr is planned for its material subsidiary, Tek Travels DMCC, focusing on user onboarding, marketing activities, and expanding its sales team.

Furthermore, TBO Tek intends to allocate INR 25 Cr towards sales, marketing, and infrastructure in India, with an additional INR 40 Cr set aside for potential acquisitions and general corporate purposes.

Established in 2006, TBO Tek offers a range of travel solutions to travel agents and tour operators, including white label solutions, hotel and flight booking APIs, and dynamic packages. As of December 31, 2023, the platform boasts connections with over 1.59 Lakh buyers across more than 100 countries and over 1 Mn suppliers.

TBO Tek’s IPO is part of a wave of tech startups going public in 2024, alongside big names like Swiggy, Ola Electric, and OYO. The company’s listing is expected to further strengthen its position in the travel industry.

It’s worth noting that alongside TBO Tek, Awfis, a coworking space provider backed by Peak XV, also received SEBI’s approval for its IPO last week.

With the IPO opening soon, investors are closely watching TBO Tek’s journey as it embarks on the next phase of growth and expansion in the competitive travel tech landscape.

Jhumpa Lahiri

Jhumpa Lahiri

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