Travels and Rentals shares list at nearly 38% premium on BSE SME; check details

Shares of Kolkata-based small and medium enterprise (SME) Travels and Rentals Ltd made a strong trading debut on Thursday, September 5. The stock listed at a nearly 38% premium to the BSE SME.

The share price of the travel services provider opened the session at ₹55 on the exchange, up 37.5% compared with its initial public offering (IPO) price of ₹40 per share. The stock price rose further within minutes after listing, hitting the 5% upper circuit at ₹57.75 levels.

Since the minimum bid quantity in the Travels and Rentals IPO was 3,000 units, successful bidders who were allotted shares in the primary issue would have been sitting on a profit of at least ₹45,000 (₹15 x 3,000) as soon as the stock began to trade on exchanges.

The ₹12.24-crore Travels and Rentals IPO was open for subscription from August 29 to September 2. The issue was oversubscribed by a whopping 608.5 times, with the company having received applications for 176.87 crore shares against 29.07 lakh shares on offer.

The retail portion was overbooked by nearly 430 times. Bids for 62.48 crore shares were received against 14.53 lakh shares on offer. Meanwhile, the non-institutional investors’ (NIIs) quota was oversubscribed by nearly 755 times, with bids received for 109.68 crore shares against 14.53 lakh shares on offer.

The Travels and Rentals IPO was a fixed-price offer made up entirely of a fresh issue of 30.6 lakh shares, with no offer-for-sale (OFS) component. Shares in the IPO were offered at a price of ₹40 per unit in a lot size of 3,000 shares and in multiples of 3,000 thereafter.

Travels and Rentals had earlier said that it would use the net proceeds from the fresh issuance of shares to meet working capital requirements and for general corporate expenses.

About Travels and Rentals Limited

Incorporated in 1996, Travels and Rentals provides a wide range of travel-related products and services for complete travel solutions. The company offers airline tickets, hotels, tour packages, rail tickets, as well as additional services like travel insurance, passport and visa processing, and tickets for activities and attractions.

The company is a premium partner of Lufthansa City Center, one of the leading travel management companies specializing in both leisure and non-leisure travel.

Its revenue for FY24 stood at ₹8 crore, 39% higher compared to ₹5.8 crore in FY23. The company’s profit after tax (PAT), meanwhile, doubled to nearly ₹3 crore in FY24 from ₹1.5 crore in the preceding financial year.