₹ 14720 / 16 shares
IPO Details
RHP/DRHPIssue Date
08 May - 10 May'24
Investment/lot
₹ 14720
Price Range
875 - 920
Lot Size
16
IPO Size
₹ 1550.81 Cr
IPO Listing Details
Listing On
15 May'24
Issue Price
920
Listed Price
₹ 1426
Retail Gain/Listing Gain
â–²55.00%
IPO Timeline
TBO Tek IPO Review | Issue Details | Price Band | Travel & Tourism
Kotak Securities
•3m 06s
TBO Tek Company Background
TBO Tek Limited is a travel distribution platform operating since 2006. It was formerly known as Tek Travels Private Limited. TBO Tek Limited is a well-known name in the global travel and tourism industry, offering services to more than 100 countries. In terms of Gross Transaction Value (GTV) and revenue from operations for the fiscal year 2023, the company is considered one of the leaders in its field.
With a global workforce of over 2,000 employees and support for 11 languages on its platform, TBO Tek has a presence in India, the Middle East & Africa, Europe, Latin America, North America, and the Asia-Pacific region.
TBO Tek operates under two revenue models: the B2B Rate Model, where the company sources inventory from suppliers, adds a markup, and passes it on to buyers; and the Commission Model, where the company charges a fixed commission from suppliers.
TBO Tek looks to use the money raised from their upcoming IPO to increase its supplier and buyer network, improve its platform, pursue strategic acquisitions, and provide custom travel solutions.
TBO Tek Competitive Strengths
Platform creating network effect to enhance the value proposition for partners
One of the primary value propositions of their platform for both suppliers and buyers is the provision of instant access to a global network of partners involved in transactions. As the buyer base expands, they generate additional demand and consequently facilitate more transactions through their platform. This increased activity attracts more suppliers, thus allowing them to provide improved pricing, a broader range of products, and increased supply volumes across both existing and new product categories.
Modular and scalable proprietary technology platform allowing the addition of new lines of business, markets, and travel products
Their platform is designed with modularity, allowing them to develop and launch solutions tailored to specific buyer and supplier segments efficiently. These enhancements leverage core platform capabilities such as supplier and buyer modules, payment infrastructure, data assets, and analytics, enabling rapid market entry and scalability with minimal investment. For instance, Zamzam, their Umrah travel solution, onboarded 100 agents within the first 30 days of its launch.
Capital-efficient business model with a combination of sustainable growth
They have established a capital-efficient business model that demonstrates operating leverage and robust cash generation. In Fiscal 2021, their Adjusted EBITDA stood at a loss of Rs. 226.89 million, which improved to Rs. 374.20 million in Fiscal 2022 and significantly increased to Rs. 1,989.61 million in Fiscal 2023. Over the nine months ending on December 31, 2022 and December 31, 2023, they achieved Adjusted EBITDA figures of Rs. 1,598.45 million and Rs. 2,005.14 million, respectively.
TBO Tek Risk Factors
- The company’s revenue is substantially dependent on hotel and ancillary bookings.
- The business depends on relationships with a limited range of suppliers.
- The business is exposed to pricing pressure from suppliers who may withhold inventory or modify the terms of arrangements.
Key Strategies
- Expand buyer and supplier base.
- Continue to amplify the value of the platform.
- Grow operations through selective acquisitions.
TBO Tek Ltd Key Financials
Here are the key financials for TBO Tek Limited:
Particulars (in Rs. million)
Particulars (in Rs. million)
How to apply for IPO through ASBA
Kotak Securities
•4m 01s
How to apply for an IPO using UPI
Kotak Securities
•01m 19s
Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.
How To Apply for TBO Tek Ltd IPO?
Here are the steps to apply for TBO Tek Ltd IPO:
Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.
Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.
Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.
Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.
TBO Tek IPO FAQs
When is TBO Tek IPO listing date?
TBO Tek IPO will list on 2024-05-15.
What is the issue size of TBO Tek IPO?
1550.81 is the issue size of TBO Tek IPO.
What is the minimum lot size required for TBO Tek IPO?
The minimum lot size is 16 shares and the investment required is ₹14720.
What is the price band of the TBO Tek IPO?
The price band of TBO Tek IPO is ₹875 to ₹920.
Where can I read more about TBO Tek business?
You can read more about TBO Tek and its IPO from the company’s red herring prospectus (RHP) here.
What is the TBO Tek Limited IPO?
The TBO Tek Limited IPO has an issue size of Rs. 1,550.81 Cr. The IPO opens for subscription on 8th May 2024 and closes on 10th May 2024.
Who is the Registrar for TBO Tek Limited IPO?
KFin Technologies Limited is the registrar for this IPO.
