Business
TBO Tek IPO Subscription Exceeds Expectations on Day 1
The first day of bidding for TBO Tek’s Rs 1,551-crore initial public offering (IPO) exceeded expectations as subscription hit 1.15 times, showcasing strong investor interest. The global travel and tourism giant, TBO Tek, is a significant player in the industry with substantial Gross Transaction Value (GTV) and revenue from operations recorded in FY23.
In the financial year 2023, TBO Tek reported an impressive 340 percent year-on-year profit growth to Rs 148.5 crore, alongside a 120.3 percent increase in revenue from operations to Rs 1,064.6 crore, marking significant financial performance.
The retail portion of the IPO was fully subscribed, indicating retail investors’ confidence in TBO Tek’s growth potential. Non-institutional investors, including high net-worth individuals, showed robust interest by subscribing 2.08 times their allocated portion, highlighting strong demand.
However, Qualified Institutional Buyers (QIBs) participation remained subdued, with only 1 percent of the reserved portion being purchased by this group. The offering’s price band ranges from Rs 875 to Rs 920 per share, offering investors flexibility in their investment decisions.
Noteworthy global investors such as Abu Dhabi Investment Authority, Government Pension Fund Global, Neuberger Berman Investment Funds, Nomura Funds, Blackrock Global Funds, Fidelity Funds, Goldman Sachs, HSBC Global, and Eastspring Investments participated in the IPO, underscoring institutional confidence in TBO Tek’s potential.
The travel distribution platform successfully garnered Rs 696.51 crore through the anchor book opened on May 7, finalizing the allocation of 75,70,807 equity shares to anchor investors at Rs 920 per share, demonstrating strong anchor investor interest in TBO Tek’s public offering.
Overall, TBO Tek’s IPO is poised for substantial success with the strong subscription on the first day and notable investor participation from both retail and non-institutional segments, setting the stage for a promising market debut on May 15.
