A Comprehensive Overview
TBO Tek, a leading travel distribution platform, launched its initial public offering (IPO) on May 8, 2023. The company aims to raise Rs 1,150.81 crore through a mix of fresh issue and offer for sale (OFS). The IPO closed for subscription on May 10, 2023.
Established in 2006, TBO Tek offers a comprehensive range of travel inventory services, including hotels, airlines, car rentals, transfers, cruises, insurance, and rail companies. Their platform streamlines travel operations for both suppliers and customers, providing a seamless booking experience across various segments.
Price band: Rs 875-920 per share
112.09% between FY22 and FY23
340.4% between FY22 and FY23
Expansion of supplier and buyer base, platform enhancement, strategic acquisitions, and data-driven solutions
16 shares for retail investors, 14 lots for NIIs, and 68 lots for QIBs
Rs 530, indicating a potential listing gain of 57.61%
May 15, 2023
TBO Tek faces competition from Rategain Travel Technologies in India and Travel CTM and Webjet Ltd abroad. Key risks include dependency on limited suppliers, vulnerability to external influences, and fierce competition in the tourism sector.
Despite a seemingly high P/E valuation, the lack of direct comparables makes definitive analysis challenging. Considering TBO Tek's promising growth trajectory and potential listing gains, a subscribe rating is recommended for the IPO. However, investors should carefully evaluate the risks involved before making an investment decision.