TBO Tek Limited

About TBO Tek Limited  Incorporated in 2006, TBO Tek Limited is a leading travel distribution platform in the global travel and tourism industry. It assists travel agents in booking and managing trips for their customers.  The company through its two-sided technology platform allows suppliers like hotels, airlines, car rentals, transfers, cruises, insurance, rail and buyers like travel agencies, independent travel advisors, tour operators, travel management companies, online travel companies, super-apps, etc to transact seamlessly with each other.  The company has two key revenue models: B2B rate model wherein the company receives inventory from suppliers and applies a certain mark-up and pass on to the buyers. In the commission model, suppliers fix the price at which they want to sell, while TBO Tek receives commission from the supplier.  The large and fragmented base of suppliers gets to display and market inventory, and set prices for the global buyer base. On the other hand, the platform offers an integrated, multi-currency and multi-lingual one-stop solution for buyers to discover and book travel.  It operates in 100+ countries and has sold 7,500+ destinations as of FY23, with 41,000+ bookings per day. As of 31 December 2023, it had a global headcount of 2000 independent consultants, with bookings accepted in 55+ currencies and 11 languages.  The company also operates a TBO academy that teaches professionals how to sell better via e-learning programs, LIVE webinars, newsletters and more. As of FY23, it is present in 150+ countries and offers 710+ LIVE courses as of 31 December 2023.  Between FY21 and FY23, it saw a CAGR rise of 95% in its revenue from operations. Between Q3 FY23 and Q3FY24, its revenue from operations rose by 30% CAGR and its profit by 28%. Moreover, the travel and tourism industry is expected to grow at a CAGR of 8.2% from $1.9 to $2.6 trillion between 2023 and 2027, which could benefit the company.  And now, TBO Tek Limited is coming out with its initial public offer (IPO). The IPO will be a fresh issue as well as an offer for sale. The money raised from the fresh issue will be utilized to expand its supplier and buyer base, add new lines of businesses, fund inorganic growth through acquisitions, and leverage data to offer bespoke travel solutions. Its shares will be listed on the NSE and BSE.  Here are key details about the TBO Tek Limited IPO:     Company Name  TBO Tek Limited Limited   Company Type  Private    Company Established On  2006   TBO Tek Limited IPO Opening Date  8th May 2024    TBO Tek Limited IPO Closing Date  10th May 2024   TBO Tek Limited IPO Allotment Status  13th May 2024    Credit of Shares to the Demat Account  14th May 2024   TBO Tek Limited IPO Listing Date  15th May 2024    TBO Tek Limited IPO Face Value  ₹1 per share   TBO Tek Limited IPO Lot Size  16 shares    TBO Tek Limited IPO Issue Size  Approx ₹1,550 crore   TBO Tek Limited IPO to be Listed on  BSE, NSE    TBO Tek Limited IPO Price band  ₹875 – ₹920 per share        Financial snapshot     Particulars  FY21  FY22  FY23  Q3FY24    Revenue  ₹ 141 crore  ₹ 483 crore  ₹ 1,064 crore  1,023 crore    Net Profit/Loss  ₹ -34.1 crore  ₹ 33.7 crore  ₹ 148 crore  154 crore              Here’s a quick look at TBO Tek Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   The platform creates a network effect so that as its buyer base grows, it channels additional demand and more transactions are conducted through its platform. This attracts more suppliers, enabling it to offer better pricing, a wider range, and a higher volume of supply across both, existing and new products.  The modular and scalable nature of the platform allows it to rearrange and combine various components in an efficient manner and handle increasing workload without significant disruption or redesign. This helps it launch in different markets with minimum investment, such as Zamzam, the Umrah travel, which was able to onboard 100 agents within the first 30 days of launch.  Ability to generate and leverage large data assets to monetise it by refining its platform and user experience based on user activities.  Data driven decision making using sales forecasting models and marketing analytics.  Capital efficient business with EBITDA margins of -16%, 5%, 17% and 18% in FY21, FY22, FY23, and Q3 FY24.   Risks and threats   Business depends on relationships with a limited range of suppliers, as 68% and 71% of its gross transaction value came from its top 10 suppliers in FY23 and Q3 FY24, respectively.  Operates in a competitive industry and may face competition from players that are currently focused in the business to consumer, GDS, bed banks or channel manager sectors.  International operations are subject to risks specific to countries and regions as it operates through one direct subsidiary and 14 indirect subsidiaries incorporated in geographies outside India.  Subject to exchange rate fluctuations, which might affect its finances as 70% of its revenue from operations in Q3 FY24 was generated in currency other than Indian Rupees.  Subject to risks associated with expansion into new geographic regions such as lack of familiarity with the culture, local laws, regulations, and economic conditions, language barriers, difficulties in staffing; and the lack of brand recognition and reputation in such regions.  Has incurred a net loss of ₹34 crore in FY21 due to the impact of COVID-19 on the travel industry.            TBO Tek Limited IPO details  |TBO Tek Limited IPO date  According to the offer document filed by the company with the SEBI, the TBO Tek IPO’s opening date – in other words, the TBO Tek IPO launch date – will be 8th May 2024. The TBO Tek IPO closing date is 10th May 2024. After this, investors will be updated about the allotment status on 13th May 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 14th May 2024. The TBO Tek IPO listing date is 15th May 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |TBO Tek Limited IPO Price Band  The IPO is a fresh issue as well as an offer for sale. The TBO Tek IPO price band has been set between ₹875 and ₹920 per share. Interested investors can choose a price within this band to apply for the IPO.  The TBO Tek IPO listing price will be determined on 15th May 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |TBO Tek Limited IPO Lot size  The TBO Tek IPO details have been declared. The TBO Tek IPO lot size is set at 16 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the TBO Tek IPO issue size is approx ₹1,550 crore.           How to pre-apply for the TBO Tek Limited IPO?  You can pre-apply for the TBO Tek Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘TBO Tek Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the TBO Tek Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the TBO Tek Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the TBO Tek Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘TBO Tek Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the TBO Tek LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the TBO Tek Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your TBO Tek Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the TBO Tek Limited IPO  To apply for the TBO Tek Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the TBO Tek Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the TBO Tek Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.