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TBO Tek sees robust listing. What should investors do now?

1 week ago 33

The listing of TBO Tek, a global travel and tourism industry player, exceeded expectations with a robust 55% premium over the issue price. The IPO was priced at Rs 920 at the upper end.

Analysts said this strong performance underscores the immense investor confidence in TBO Tek's robust technological foundation and its potential for continued growth in the online travel sector.

TBO Tek has a robust technological foundation. The company's modular and scalable platform positions it for efficient operations and data utilisation in a dynamic digital travel landscape. Its business model fosters efficient growth, further adding to its attractiveness for investors.

"TBO Tek's strong listing signifies a promising future. Investors may hold their position by keeping a stop loss at 1,290," said Shivani Nayti, head of wealth, Swastika Investmart.

The issue was booked over 80 times at close on strong interest from non-institutional investors. Ahead of the IPO opening, the company raised nearly Rs 697 crore from anchor investors.

Also Read: TBO Tek shares debut at 55% premium over issue price

The funds raised through the fresh issue would be used for the growth and strengthening of the company platform by adding new buyers and suppliers and towards unidentified inorganic acquisitions along with general corporate purposes.

TBO simplifies the business of travel for suppliers with hotel bookings, airlines, and retail buyers such as travel agencies and enterprise buyers that include tour operators, travel management companies through the two-sided technology platform that enables suppliers and buyers to transact seamlessly with each other.

The platform connects over 147,000 buyers across over 100 countries with over one million suppliers, as of June 2023. Recently, leading investment firm General Atlantic had acquired a minority stake in TBO.

In 2023 the travel and tourism industry is estimated to recover at pace, growing 18% year-on-year from 2022 to reach $1.9 trillion, and is expected to grow at a CAGR of 8.2% to reach $2.6 trillion in 2027.

Axis Capital, Goldman Sachs (India) Securities, JM Financial and Jefferies India acted as the book running lead managers to the issue.

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