TBO Tek Limited’s IPO consists of a fresh issue of shares worth INR 400 crores and an offer to sell 1.56 crores of existing equity shares. The company will use the funds raised for expanding the platform with new Buyers and Suppliers, pursue unidentified acquisitions, and address general corporate needs.
TBO Tek IPO – Important Details
| TBO Tek Limited IPO Date | May 8, 2024 to May 10, 2024 |
| TBO Tek Limited IPO Listing Date | May 15, 2024 |
| TBO Tek Limited IPO Price | INR 875- 920 |
| TBO Tek Limited IPO Lot Size | 16 shares |
| TBO Tek Limited IPO Total Issue Size | INR 1,550.81 crores |
| TBO Tek Limited IPO Basis of Allotment | May 13, 2024 |
| TBO Tek Limited IPO Initiation of Refunds | May 14, 2024 |
| TBO Tek Limited IPO Credit of Shares to Demat | May 14, 2024 |
| TBO Tek Limited IPO Issue Type | Book Built Issue IPO |
| TBO Tek Limited IPO Listing At | BSE, NSE |
Tek Travels Ltd IPO – Company Profile
TBO platform, founded in the mid-2000s during India’s aviation boom, simplifies airline ticket bookings for travel agents. With a global presence, it empowers the travel industry, serving clients in 100+ countries by June 30, 2023.
As a prominent travel distribution platform, TBO Tek caters to global travel and tourism, offering Buyers a diverse travel inventory tailored to customer needs. Their support includes handling various currencies and providing forex assistance.
They streamline travel business for Suppliers and Buyers, offering a two-sided technology platform for seamless transactions. Suppliers showcase inventory to a global Buyer base, while Buyers access an integrated, multi-currency, and multilingual one-stop solution for diverse travel segments worldwide.
Tek Travels Ltd IPO – Fundamental Analysis
Tek Travels Ltd demonstrates exceptional revenue growth, significant profitability improvement, and robust gross profit margins ahead of its IPO. With a strong recovery in RoNW and EPS, it presents a compelling investment case, albeit with an eye on its increased liabilities.
Revenue Growth:
The company’s revenue has seen a dramatic increase from ₹1,418.06 million in 2021 to ₹10,645.87 million in 2023. This exponential growth signifies a strong market presence and an expanding customer base.
Equity Growth:
Equity has increased consistently, from ₹2,040.71 million in 2021 to ₹3,371.92 million in 2023, indicating investor confidence and potentially successful capital raises to support growth.
Expense Management and Profitability:
While expenses have also grown substantially, from ₹1,768.08 million in 2021 to ₹9,144.17 million in 2023, the company has managed to turn a significant profit by 2023, with a profit after tax of ₹1,484.91 million. This demonstrates effective expense management and operational efficiency.
Return on Net Worth (RoNW):
The RoNW shows a remarkable recovery from -16.73% to 44.04% between 2022 and 2023, highlighting the company’s ability to generate profits from its shareholders’ equity effectively.
Net Asset Value (NAV) per Equity Share:
The NAV per equity share has increased from ₹19.58 in 2021 to ₹33.22 in 2023, reflecting the growing intrinsic value of the company’s shares.
Diluted EPS:
The Diluted EPS has improved significantly from -₹3.28 in 2021 to ₹14.07 in 2023, showcasing the company’s improved profitability and earnings per share.
Total Assets and Liabilities:
Total assets have more than quadrupled, indicating aggressive expansion and acquisition of assets. However, liabilities have also increased significantly, necessitating a close examination of the company’s debt levels and financial structure.
Gross Profit Margin:
The gross profit margin has remained strong and slightly improved from 67.20% in 2022 to 68.82% in 2023, suggesting the company’s ability to maintain profitability despite scaling operations.
Tek Travels Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 1,418.06 | 4,832.68 | 10,645.87 |
| Equity (₹ in Million) | 2,040.71 | 2,319.04 | 3,371.92 |
| Expenses (₹ in Million) | 1,768.08 | 4,704.64 | 9,144.17 |
| Profit and Loss After Tax (₹ in Million) | (341.44) | 337.17 | 1,484.91 |
| RoNW (%) | (16.73) | 14.54 | 44.04 |
| NAV per Equity Share (₹) | 19.58 | 22.85 | 33.22 |
| Diluted EPS only (₹) | (3.28) | 3.32 | 14.07 |
| Total Assets (in million) | 5,761.62 | 12,714.26 | 25,579.25 |
| Total Liabilities (in million) | 3,720.91 | 10,395.22 | 22,207.33 |
| Gross Profit Margin (%) | – | 67.20 | 68.82 |
Tek Travels Ltd IPO Peer Comparison
TBO Tek Limited showcases superior RoNW at 44.04% and an impressive EPS of ₹14.07, outperforming peers like Rategain and Webjet in profitability metrics, despite not having a P/E ratio listed. Its strong performance suggests a robust position within the travel technology sector.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| TBO Tek Limited | 10,645.87 | 1 | NA | 14.21 | 14.07 | 44.04 | 33.22 |
| RategainTravelTechnologiesLimited | 5,651 | 1 | 98.7 | 6.29 | 6.33 | 9.6 | 65.7 |
| Travel CTM | 34,630 | NA | 30.7 | 28.14 | 28.04 | 6.6 | 425.2 |
| WebjetLtd. | 19,313 | NA | 157.1 | 2.01 | 2.01 | 1.7 | 116.0 |
Tek Travels Ltd IPO Objective
The main objective of Tek Travel Limited’s IPO is to invest INR 260 crores for platform growth, emphasizing technology, marketing, and infrastructure. Additionally, INR 40 crores allocated for unidentified inorganic acquisitions, with the balance for general corporate purposes.
- Growing and strengthening the platform by adding new Buyers and Suppliers: The company plans to utilize INR 260 crores for technology, marketing, and infrastructure. Connecting 147,000+ Buyers and 5,005 Suppliers, their platform aims to meet growing demands worldwide.The details of the investments towards the following aspects in order to achieve this object are:
- Investment of INR 110 crores in technology and data solutions by their Company.
- Investment of INR 100 crores in their Material Subsidiary, Tek Travels DMCC, for onboarding platform users through marketing and promotional activities; and hiring sales and contracting personnel for augmenting the Supplier and Buyer base outside India.
- Investment of INR 50 crores in sales, marketing and infrastructure to support organization’s growth plans in India.
- Unidentified inorganic acquisitions and general corporate purposes: Continuing to explore inorganic opportunities, Tek Travel aims to invest in ancillary services and acquire businesses aligning with their portfolio, expanding their Buyer and Supplier base. The company plans to allocate INR 40 crores for strategic acquisitions.The company plans to deploy the balance funds towards the general corporate goals including capital expenditure, rental, administrative expenses, working capital, repayments, and meeting business exigencies.
Tek Travels Ltd IPO Risks And Challenges
Tek Travels faces revenue sensitivity to global economic, security, and environmental factors. Dependency on a limited range of Suppliers poses risks, and Suppliers seeking cost reduction may impact contract renegotiation. A duopoly in the Indian aviation industry poses additional business challenges.
- Tek Travels revenue, reliant on hotel bookings and air ticketing, is highly sensitive to global economic conditions, security issues, environmental concerns, regulatory changes, epidemics, and natural disasters impacting the travel and tourism industry.
- Dependency on a limited range of Suppliers poses risks. Adverse changes or inability to form new relationships may impact inventory, with potential disruptions and revenue or margin fluctuations. Recoverable amounts and delays in receiving funds from airlines also pose potential adverse effects.
- Suppliers seeking cost reduction and control over distribution channels, especially through direct platforms, may impede their ability to renegotiate contracts. A duopoly in the Indian aviation industry poses potential business impact.
TBO Tek Limited IPO – Industry & Market Potential
Over the last century, the travel and tourism industry evolved into a comprehensive ecosystem, serving both B2B and B2C travelers. The global market, valued at $1.7 trillion in 2017, is projected to recover and grow, reaching $2.6 trillion by 2027.
The travel industry, spanning a century, serves 1.5-2 million global buyers, encompassing diverse retail and enterprise segments. Fragmentation is evident in retail, online agents, and travel management companies, with small players competing for market space.
Travel distribution platforms address fragmented needs, providing seamless experiences. The estimated travel spend via these platforms in 2023 is US$1.9 trillion, projected to grow at a CAGR of 8.1% to reach US$2.6 trillion by 2027.
TBO Tek Limited IPO – Type of Offer
TBO Tek Limited plans a fresh issue of shares, seeking INR 400 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 1.56 crore existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 400 crores. The company intends to utilize the proceeds from the fresh issue for expanding the platform with new Buyers and Suppliers, pursue unidentified acquisitions, and address general corporate needs.
2. Offer for sale: TBO Tek Limited is offering to sell 1.56 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in million) |
| Gaurav Bhatnagar | 2,033,944 |
| Manish Dhingra | 572,056 |
| LAP Travel | 2,606,000 |
Tek Travels Ltd IPO Offer Size
The offer size of TBO Tek Limited’s is INR 1,550.81 crores. This comprises a new issuance of shares totaling INR 400 crores and the sale of 1.56 crores of existing equity shares. The funds generated will be utilized for expanding the platform with new Buyers and Suppliers, pursue unidentified acquisitions, and address general corporate needs.
Tek Travels Ltd IPO Allotment Structure
TBO Tek Limited allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
● Eligible Employees: A portion of the issue is reserved for eligible employees.
How to apply for an TBO Tek Limited IPO?
To apply for the TBO Tek Limited IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the TBO Tek Limited IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the TBO Tek Limited Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check TBO Tek Limited IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the TBO Tek Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the TBO Tek Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the TBO Tek Limited IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the TBO Tek Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
TBO Tek Limited IPO Offer Registrar
The registrar for the TBO Tek Limited IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower B, Plot No. 31, 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad, 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
TBO Tek Limited IPO FAQs
What is the allotment date of the TBO Tek Limited IPO?
The allotment date of TBO Tek Limited IPO is May 13, 2024.
What is the price band of the TBO Tek Limited IPO?
The price band of the TBO Tek Limited IPO is INR 875 to 920 per share.
What is the size of the TBO Tek Limited IPO?
TBO Tek Limited plans to launch an Initial Public Offering (IPO). This comprises a new share issuance of INR 400 crores and the sale of 1.56 crores of existing equity shares. The funds generated will be utilized for expanding the platform with new Buyers and Suppliers, pursue unidentified acquisitions, and address general corporate needs.
What is the listing date of the TBO Tek Limited IPO?
The listing date of TBO Tek Limited IPO is May 15, 2024.
