TBO TEK Ltd: Future growth prospects
The Rs1,551-cr IPO will open on May 8 and close on May 10; Will utilise the funds to enhance existing technology backbone, sales, marketing infrastructure, strategic acquisitions, investment in material subsidiary, etc
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Mumbai: TBO TEK’s Rs1,551-crore IPO will hit the market on May 8 and the issue will close on May 10. The IPO comprises a fresh issue of Rs400 crore and offer for sale up to 12,508,797 equity shares of Rs1 each. The retail quota is 10 per cent, QIB is 75 per cent, and HNI is 15 per cent. TBO TEK is one of the leading global travel distribution platforms in the global travel and tourism industry.
The price band of the offer has been fixed at Rs875-925 per equity share with a face value of Rs1 per share. Bids can be made for a minimum of 16 equity shares and in multiples of 16 equity shares thereafter.
With an estimated value of $1.9 trillion in 2023, the travel and tourism sector is predicted to grow steadily at a rate of 8.2 per cent until it reaches $2.6 trillion by 2027. Rising income in emerging nations, flexible work schedules, and improved travel experiences brought about by the use of technology are some of the causes driving this increase. TBO TEK Ltd can capitalise on this trend of expansion by utilising its extensive portfolio and worldwide reach.
With more than 275,000 participants, the travel buyer industry in India is fragmented and has disorganised distribution channels. In this fragmented industry, TBO TEK can increase client attraction, supply extensive inventory, and improve operations by using its technology-driven platform.
Gaurav Bhatnagar and Ankush Nijhawan are the founders of TBO TEK, which offers a comprehensive travel inventory to buyers according to their requirements, and support a wide range of currencies along with forex assistance.
The company proposes to utilise the investment to the tune of Rs135 crore in enhancing and maintaining the existing technology infrastructure, which serves as the backbone of the company’s operations. A sum of Rs40 crore will be utilized for strategic acquisitions aimed at complementing the existing platform and enhancing overall capabilities. Rs100 crore is earmarked for its investment in its material subsidiary and Rs25 crore investment in sales, marketing and infrastructure to support the organization’s growth plans in India.
The fund allocation is in expanding the supplier and buyer base, facilitating growth in the number of listings and transactions on the platform.
There is also an allocation towards investing in research and development initiatives to innovate and stay ahead of market trends, ensuring the platform remains competitive in the evolving travel industry.
TBO TEK Ltd emerged during India’s aviation boom in the mid-2000s, aiming to simplify ticket booking for travel agents across multiple airlines. With a mission to empower the travel industry through technology, TBO TEK expanded globally, serving buyers and suppliers in over 100 countries. TBO TEK offers a wide range of services, including comprehensive travel inventory and forex assistance. Their two-sided technology platform facilitates seamless transactions between suppliers and buyers, catering to diverse travel segments. TBO TEK Ltd ranks second in billing and settlement plan (BSP) in India.
