TBO Tek Limited is coming up with an IPO. The offer 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 | NA |
| TBO Tek Limited IPO Listing Date | NA |
| TBO Tek Limited IPO Price | NA |
| TBO Tek Limited IPO Lot Size | NA |
| TBO Tek Limited IPO Total Issue Size | NA |
| TBO Tek Limited IPO Basis of Allotment | NA |
| TBO Tek Limited IPO Initiation of Refunds | NA |
| TBO Tek Limited IPO Credit of Shares to Demat | NA |
| 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 demonstrates impressive revenue growth, profitability turnaround, and positive trends in RoNW and EPS. The expanding scale and improved financial ratios suggest a potential investment opportunity.
Revenue Growth:
Tek Travels showcases remarkable revenue growth, surging from ₹1,418.06 million in 2021 to ₹10,645.87 million in 2023, indicating substantial business expansion.
Profitability:
After reporting a loss of ₹341.44 million in 2021, the company turns profitable, with Profit and Loss After Tax reaching ₹1,484.91 million in 2023, reflecting improved financial health.
Return on Net Worth (RoNW):
RoNW evolves positively, increasing from (16.73)% in 2021 to 44.04% in 2023, indicating efficient utilization of equity for returns.
Net Asset Value (NAV) and Equity:
NAV per Equity Share rises from ₹19.58 in 2021 to ₹33.22 in 2023, demonstrating an upward trajectory. Equity expands from ₹2,040.71 million in 2021 to ₹3,371.92 million in 2023.
Earnings per Share (EPS):
Diluted EPS improves significantly, moving from a negative (3.28) in 2021 to a positive 14.07 in 2023, indicating enhanced earnings available to each share.
Financial Stability:
Total Assets and Liabilities witness substantial growth, showcasing the company’s expanding scale. Gross Profit Margin improves from 67.20% in 2022 to 68.82% in 2023, indicating efficient cost management.
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
Tek Travels exhibits strong revenue and financial performance compared to peers like TBO Tek, RateGain Travel, Travel CTM, and Webjet Ltd. With impressive RoNW and EPS, Tek Travels stands out, presenting a potential investment opportunity in the competitive 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
Tek Travel intends 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 our 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 our 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 4000 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
TBO Tek Limited plans to launch an Initial Public Offering (IPO). 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 is not yet announced.
What is the price band of the TBO Tek Limited IPO?
The price band of the shares issued by the company is not yet announced.
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 the issue is not yet announced.
