TBO Tek, a leading player in the travel technology sector, has filed an Initial Public Offering (IPO) with the Securities and Exchange Board of India (Sebi), involving Rs 400 crore fresh shares and a 1.56 crore share Offer For Sale (OFS) from promoters Bhatnagar, Dhingra, LAP Travel and investors TBO Korea, Augusta TBO. This announcement was made on Wednesday, November 8, 2023.
A potential Rs 80 crore pre-IPO placement is anticipated which may reduce the fresh issue size. Following this placement, a red herring prospectus is expected to be filed with the Registrar of Companies (RoC).
This move comes after a previous attempt to launch an IPO in the period between December 2021 and May 2022. The Rs 2,100-crore IPO was approved but not launched due to prevailing market conditions.
The proceeds from the current IPO will be utilized for platform growth (Rs 260 crore) and acquisitions/corporate purposes (Rs 40 crore). In the financial year FY23, TBO Tek reported increased bookings, gross transaction value, net profit, and revenue over FY22.
The shareholding structure of TBO Tek consists of Promoters Bhatnagar, Dhingra, LAP Travel and TBO ESOP Trust holding most shares. Among investors, Augusta TBO is the largest shareholder followed by TBO Korea and General Atlantic.
Axis Capital (NYSE:AXS), Goldman Sachs (NYSE:GS) (India), JM Financial, Jefferies India are managing the issue while KFin Technologies is handling the offer's registration.
In terms of competition, TBO Tek competes with Rategain Travel Technologies domestically and Travel CTM and Webjet on a global scale.
In related news, ASK Automotive's IPO was over-subscribed by 1.85 times on its final day.
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