B2B Travel Startup TBO Tek's IPO Opens May 8th - Should You Invest?

Curious about TBO Tek's IPO? Wondering if it's worth investing? Dive into the details: Rs 1,550.81 cr up for grabs, but should you take the plunge? Explore the price band, investor categories, and potential utilization of funds. Find out!

Swati Dayal
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TBO Tek, a startup in the B2B global travel distribution sector, will debut on the stock market with its Initial Public Offering (IPO). With an established reputation for connecting buyers and suppliers worldwide, TBO Tek's IPO is set to hit the market on May 8, 2024.

Key Factors To Know Before Subscription

The TBO Tek IPO, valued at Rs 1,550.81 crore, combines a fresh issuance of 43 lakh shares worth Rs 400 crore and an offer-for-sale (OFS) of 1.25 crore shares totaling Rs 1,150.81 crore. Following the IPO, the promoter stake will decrease from 51% to 44%. The price band for the IPO has been set between Rs 875 to Rs 920 per equity share.

TBO Tek's IPO, approved by the Securities and Exchange Board of India (SEBI), comprises a fresh issue of shares totaling up to Rs 400 crores and an offer for sale (OFS) component of 1.25 crore equity shares. The IPO opens for subscription on May 8 and closes on May 10, with an anchor investor bidding scheduled for May 7.

Seventy-five percent of the IPO is reserved for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and the remaining 10% for retail investors. The minimum bid requirement is set at 16 equity shares, with bids allowed in multiples thereof.

TBO Tek IPO Price Range and Lot Size Revealed: Rs 875 to Rs 920 per Share

TBO Tek has announced a price band of Rs 875 to Rs 920 per share with a face value of Rs 1 each for its IPO. The lot size is set at 16 shares, requiring a minimum bid amount of Rs 14,720 for retail investors.

Where Will the Funds Be Utilised?

The proceeds from the fresh issue will be utilized to fortify TBO Tek's platform by expanding its network of buyers and suppliers. A significant portion, approximately Rs 135 crores, will be allocated towards investments in technology and data solutions. Additionally, Rs 100 crores will be earmarked for enhancing the operations of its subsidiary, Tek Travels DMCC, through marketing activities and hiring initiatives.

Company Background

Founded in 2006, TBO Tek, previously known as Tek Travels Private Limited, has established itself as a leading provider of travel solutions to agents and tour operators globally. The platform boasts connections with over 1.59 lakh buyers across more than 100 countries, linking them with a vast network of over 1 million suppliers.

Industry Outlook

TBO Tek's IPO comes at a time when several tech startups are preparing to go public in 2024, including industry giants like Swiggy and Ola Electric. This trend highlights the robust growth potential of the Indian market and signifies investor confidence in the tech sector.

Market Performance and Expectations

Prior to the IPO launch, TBO Tek shares are trading at a premium of Rs 520 in the grey market, indicating strong investor interest. Analysts predict a listing price of Rs 1440 per share, representing a significant increase from the IPO price.

With its IPO, TBO Tek aims to strengthen its position in the global travel distribution market and pursue strategic initiatives for future growth. The company's innovative solutions and extensive network make it a promising player in the evolving landscape of B2B travel services. As investors eagerly await the IPO launch, all eyes are on TBO Tek as it embarks on this new phase of its journey in the world of finance and technology.

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