TBO Tek IPO: Public Offer To Open On May 8, GMP Hints Strong Listing Ahead Of Subscription

TBO Tek, formerly known as Tek Travels Private Limited, is gearing up to launch its initial public offering (IPO) next week. The IPO for the travel distribution platform is scheduled to open for subscription on May 8 and will close on May 10.

Market observers have noted a considerable buzz surrounding TBO Tek, with shares commanding a premium of Rs 520 in the grey market ahead of the issue's opening. This premium suggests an estimated listing price of Rs 1440 per share, marking a substantial 56.52% increase over the IPO price of Rs 920.

According to investorgain.com, the grey market premium (GMP) for TBO Tek IPO ranges from Rs 0 to Rs 520. The IPO's price range is set between Rs 875 and Rs 920 per equity share, with the company aiming to raise Rs 1,550.81 crore through the offering.

The IPO comprises a new issuance of 0.43 crore shares valued at Rs 400 crores and an offer-for-sale segment of 1.25 crore shares valued at Rs 1,150.81 crores. The issue will be conducted via the book-building process, with allocations earmarked for Qualified Institutional Buyers, non-institutional investors, and retail investors.

Retail investors will need a minimum investment of Rs 14,720 to participate in the IPO, with the minimum lot size set at 16 shares. Non-Institutional Investors (NIIs) and Big Non-Institutional Investors (NIIs) will have minimum lot size investments of 14 lots (equivalent to 224 shares) and 68 lots (1,088 shares), respectively.

The company plans to utilize the net proceeds from the IPO to expand its supplier and buyer base, introduce new lines of business, pursue targeted acquisitions for inorganic growth, and enhance synergies with its existing platform.

Leading financial institutions such as Axis Capital Limited, Jefferies India Private Limited, Goldman Sachs (India) Securities Private Limited, and JM Financial Limited are acting as the book-running lead managers for the IPO. KFin Technologies Limited has been appointed as the registrar for the issue.

TBO Tek was a premier travel distribution platform within the global travel and tourism sector for the fiscal year 2023. With operations spanning over 100 countries, TBO Tek offers a range of services tailored to meet the varied needs of its customers. Its extensive travel inventory ensures comprehensive options while facilitating transactions in multiple currencies streamlines the booking process.