TBO Tek Ltd makes a strong market debut at 55% premium on NSE

B2B travel distribution platform TBO Tek Ltd made a bumper debut on stock exchanges with shares listing at a premium of 55% to the issue price.

TBO Tek Ltd shares are listed at ₹1,426 per share against the issue price of ₹920 per share on NSE, reflecting gains of 55% from the issue price.

On BSE, the stock made a debut at ₹1380 per share, reflecting a premium of 50% from the issue price of ₹920 per share. More than 2.48 lakh shares changed hands on BSE in the first five minutes of trade.

TBO Tek Ltd shares saw intense trading on NSE with the stock moving between a high of ₹1,455.95, up by 58% from issue price, and a low of ₹1411 per share. More than 46 lakh shares changed hands on NSE in early trade.

At 10.05 AM on Wednesday, TBO Tek shares were trading at ₹1413 per share, up by 53% from the issue price but down 1% from the listing price. The market valuation of the company stood at ₹15,343.45 crore.

TBO Tek Ltd IPO

The company launched its initial public offering on May 8 to raise ₹1,550.81 crore from public investors. The issue, which comprised a fresh issue of 43 lakh shares and an Offer for Sale component of ₹1,150.81 crore, was priced at ₹875 to ₹920 per share.

At the close of bidding on May 10, the issue was booked around 86 times. The IPO received bids for 80.48 crore shares against the net issue size of 92.85 lakh shares. Qualified institutional buyers placed bids for 63.34 crore equity shares against 50.47 lakh shares reserved for them, resulting in an overall subscription of 125.51 times.

Retail individual investors placed bids for 4.31 crore shares against 16.82 lakh shares on offer. The retail portion was booked 25.65 times at the close of the bidding.

Non-Institutional Investors’ portion was subscribed a little over 50 times. NIIs bids for 12.76 crore shares compared to 25.23 lakh shares on offer.

TBO Tek Ltd had garnered ₹696 crore from anchor investors by allotting 75,70,807 shares at ₹920 per share.

TBO Tek is a travel distribution platform. Working in an asset-light model, it does not require substantial investment in fixed assets. TBO Tek used sales and marketing efforts to boost the buyer and supplier base.

How TBO Tek plans to use IPO proceeds

According to the company’s RHP, of the net proceeds of ₹400 crore from the fresh issue, the company will use funds to increase its buyer and supplier base.

The company seeks to invest ₹135 crore in technology and data solutions by the company to boost its supplier and buyer base.

The supplier base includes entities such as hotels, airlines, transfers, cruises, car rentals and insurance while buyers include travel agencies and independent travel advisors, tour operators, travel management companies, online travel companies, super-apps and loyalty apps.

The company seeks to invest ₹100 crore in its subsidiary, Tek Travels DMCC, for onboarding platform users through promotional activities and hiring sales and contracting personnel to boost its Supplier and Buyer base outside India.

TBO Tek plans new lines of businesses

The company has earmarked ₹25 crore for marketing and infrastructure to support the organisation’s growth plans in India while another ₹40 crore for unidentified inorganic acquisitions to boost growth.