TBO Tek Ltd., a travel services provider, has filed a preliminary prospectus with Sebi in order to raise Rs 2,100 crore through an initial public offering. The public offering consists of a fresh issue of equity shares worth up to Rs 900 crore and an offer for sale by promoters and current investors worth up to Rs 1,200 crore. It may also propose a pre-IPO placement worth Rs. 180 crore, which, if done, would diminish the amount of the original issuance.
The company is one of the largest worldwide travel distribution systems, assisting suppliers such as hotels, airlines, car rentals, transfers, cruises, insurance, train, and others in streamlining their operations. Their portal also serves retail and enterprise buyers like travel agencies, independent travel advisers, tour operators, and others. Their technology platform unifies a vast and fragmented base of Suppliers in order to show and promote inventory to, as well as establish pricing for, a big and fragmented global
Buyer base. They were founded in 2006 and currently operate in over 100 countries. TBO TEK Ltd. is India’s second-largest Billing and Settlement Plan (“BSP”) provider.
TBO TEK Ltd. Objective
- The company proposes to utilise the net proceeds from new shares to strengthen its technology platform by acquiring new buyers and sellers.
- The capital will be used for strategic acquisition and promoting inorganic growth.
TBO TEK Ltd IPO Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue From Operation | 1,418.06 | 5,707.92 | 4,408.55 |
| EBITDA | 226.89 | 849.46 | 437.79 |
| EBITDA Margin (%) | 16.00 | 4.88 | 9.93 |
| Profit After Tax | 341.44 | 729.28 | 263.33 |
| EPS | 3.28 | 7.00 | 2.53 |
| ROE | NA | NA | NA |
TBO TEK Ltd IPO Key Points
Strengths
- Platform creating network effect with interlinked flywheels to enhance value proposition for partners
- Modular and scalable proprietary technology platform allowing addition of new lines of business, markets, and travel products
- Ability to generate and leverage large data assets
- Capital efficient business model with a combination of strong growth and profitability
Risks
- Revenue is substantially derived from the worldwide travel and tourism industry and factors that negatively impact that industry could have a material adverse effect on the business
- Business highly depends on relationships with the Suppliers, thus, any impact on the existing relationships or inability of entering into new ones would hurt the business
- Suppliers may change or modify the terms of arrangements, including a reduction or elimination of commission, incentive or other compensation paid to the company
- Unable to continue to provide an attractive travel distribution platform to Buyers and Suppliers through various offerings
- Exposed to pricing pressure from Suppliers
TBO TEK Ltd IPO FAQs :
Q1. What is TBO TEK Ltd. IPO?
Ans. TEK Limited will float a public issue of Rs 21000 crore IPO, consisting of Rs 900 crore in fresh issues and Rs 1200 crore is an offer for sale of equities.
Q2. When will TBO TEK Ltd. IPO allotment be available?
Ans. Details not available.
Q3. What will be TBO TEK Ltd. IPO lot size?
Ans. Details not available.
Q4. When will TBO TEK Ltd. IPO open for subscription?
Ans. Details not available.
Q5. When will TBO TEK Ltd. IPO open for subscription?
Ans. Details not available.
Q6. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q7. When will TBO TEK Ltd. list on exchanges?
Ans. It usually takes ten working days from the last day of subscription to list the IPO on the bourses.
Q8. What would be the listing gains on TBO TEK Ltd. IPO?
Ans. Listing gain is the difference between the IPO’s opening and offer prices. The listing gain results from changing investors’ interests, global parameters, and short vs long-term outlooks. I have finished the application process for TBO TEK Ltd. IPO, but the funds are not yet debited.
Q9. What is the reason?
Ans. The bank initially blocks the amount you bid for an IPO. It will debit the amount when the shares get allotted or unblock it after the UPI mandate expiry date.
Q10. Can I submit more than one application for the public issue of TBO TEK Ltd. using one PAN?
Ans. You can submit only one application using one PAN card.
Q11. What is the minimum order quantity for TBO TEK Ltd. IPO?
Ans. The minimum size of the application will be one lot.
