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TBO Tek Limited IPO: Price, Lot Size, Strengths and Risks

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Started in 2006, TBO Tek Limited is a New Delhi-based company which offers services related to hotels, trains, aeroplanes, rental cars, transportation, cruises, and insurance. It allows the sellers to set their prices for the buyers and also supports various currencies with forex help. 

The company is launching its IPO this month with subscriptions starting from 8th May 2024. The last date of application is 10th May 2024. From its IPO listing on BSE and NSE on 15th May, 2024, the shares can be bought or sold from the secondary market.

Read on carefully to learn more about TBO Tek Limited IPO.

These are the most important details of TBO Tek Limited IPO:

IPO Open Date

8th May 2024, Wednesday

IPO Close Date

10th May 2024, Friday

Issue Type

Book Built IPO

Face Value

Rs. 1 per share

Price Band

Rs. 875 to Rs. 920 per share

Minimum Lot Size

16 equity shares

Total Issue Size

Amount aggregating up to Rs. 1,550.81 crore

Fresh Issue Size 

Amount aggregating up to Rs. 400 crore

Offer for Sale

Amount aggregating up to Rs. 1,150.81 crore

Additional ReadUpcoming IPOs in May 2024

IPO Details

About the Company

With a presence across 100+ countries in the world, TBO Tek Limited is a travel distribution platform. The company offers various travel booking facilities along with forex assistance. It has a platform which enables both buyers and sellers to transact with each other. Its main suppliers include hotels, car rentals, rail, transfers, insurance, airlines, cruises and others. The company has two main revenue models: the commission and the B2B rate model. 

The company is launching its IPO which has a total size of 1,550.81 crore, comprising 4,347,826 fresh issue shares and the OFS amounting to 12,508,797 shares. 

Additional ReadHow to Invest in an IPO Online

IPO Timeline

Here are the important dates and timelines of the TBO Tek Limited IPO that you should know before applying:

IPO Open Date 

8th May 2024, Wednesday

IPO Close Date 

10th May 2024, Friday

Cut-off Time for UPI Mandate Confirmation

10th May 2024 at 5 PM

Basis of Allotment Date 

13th May 2024, Monday

Initiation of Refunds Date 

14th May 2024, Tuesday

Credit of Shares to Accounts Date 

14th May 2024, Tuesday

Listing Date 

15th May 2024, Wednesday

TBO Tek Limited IPO Lot Size

Follow this table to know the lot size of the TBO Tek Limited IPO issue:

Application

Lots

Shares

Amount

Retail Investor (Minimum)

1

16

Rs. 14,720

Retail Investor (Maximum)

13

208

Rs. 1,91,360

Small HNI (Minimum)

14

224

Rs. 2,06,080

Small HNI (Maximum)

67

1,072

Rs. 9,86,240

Big HNI (Minimum)

68

1,088

Rs. 10,00,960

Additional ReadDifference Between NFO and IPO

Company Financials

The following table highlights the financial statements of TBO Tek Limited for the previous three financial years:

Particulars

For the Financial Year Ending (Rs. In Millions)

 

March 31, 2023

March 31, 2022

March 31, 2021

Total Assets

25,579.25

12,714.26

5,761.62

Total Liabilities

22,207.33

10,395.22

3,720.91

Total Expenses

9,144.17

4,704.64

1,768.08

Total Revenue

10,857.71

5,119.28

1,765.49

Profit/Loss After Tax

1,484.9

337.17

(341.44)

EBITDA

1,818.45

287.41

(226.89)

Strengths of the Company

These are some of the strengths of TBO Tek Limited:

  • TBO Tek Limited has made significant growth in terms of potential customers and sellers. The number of buyers increased to 41,861 (FY 24) from 23,532 (FY 21). On the other hand, the number of sellers/suppliers went up to 2,13,633 (FY 24) from 45,025 (FY 21).
  • The revenue from the operation of this company has seen significant growth in the last three years. In FY 21, FY 22 and FY 23, the revenue from operations is Rs. 141.80 crore, Rs. 483.26 crore and Rs. 1,064.58 crore respectively.
  • The company owns a data warehouse where it stores its important information such as bookings, invoices, searches and payments. It helps to manage the large data of this company.
  • The conversion rate of TBO Tek Limited has grown over the period. As per the RHP document, in FY 21, the booking rate was 4.87% for every 100 searches. In FY 24, the rate is 7.29%.
  • The suppliers who sell more than one product on the company’s platform have grown with a CAGR of 92.86%.

Risks Involved

These are some of the risks involved with the business of TBO Tek Limited:

  • The company is highly dependent on its ancillary bookings and hotels which contribute the highest portion of its revenue from operations. As of 31st December 2023, the contribution stands at 72.47%. Any setback in the tourism sector can have an adverse effect on the business deriving from hotel bookings. 
  • The company and its joint directors have received show cause notices from the Enforcement Directorate for money laundering activities in Bangladesh. Additionally, there are some pending legal investigations against the company, promoters and its subsidiaries. Any negative outcome of these investigations will impact its business.

Summing Up

If you are deciding to apply for TBO Tek Limited IPO, make sure you have read all the details from the RHP document. To apply for this IPO or any other upcoming IPOs, it is mandatory to have a demat account. If you do not have one, open it with us for free and enjoy hassle-free IPO applications.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

What is the size of TBO Tek Limited’s IPO?

Answer Field

The size of TBO Tek Limited IPO is worth Rs. 1,550.81 crore. 

Who are the book-running lead managers of TBO Tek Limited IPO?

Answer Field

Axis Capital Limited, Goldman Sachs (India) Securities Private Limited, Jm Financial Limited and Jefferies India Private Limited are book-running lead managers of TBO Tek Limited IPO.

Who are the selling shareholders in TBO Tek Limited IPO?

Answer Field

Augusta TBO, Gaurav Bhatnagar, LAP Travel, Manish Dhingra and TBO Korea are the main shareholders who are selling their stakes in TBO Tek Limited IPO.

What is the minimum investment amount for retail investors in the TBO Tek Limited IPO?

Answer Field

The minimum investment amount for retail investors is Rs. 14,720 (at the upper price band) in the TBO Tek Limited IPO.

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