TBO Tek IPO

TBO Tek limited created the TBO platform in 2006 as a technology solution to make booking airline tickets across numerous carriers easier for travel brokers. They are now one of the world’s major travel distribution companies. TBO Tek IPO will hit the market in May 2021.

About TBO Tek

Via their two-sided technology portal, which enables Suppliers and Buyers to transact seamlessly with eagle, they ease the business of travel for wholesalers including hotels, airlines, cruises, insurance, rail, and others.

They also help buyers including retail buyers such as travel agencies and independent travel advisors, and enterprise buyers including tour operators, online travel organisations, super and loyalty apps.

Their platform enables a big and fragmented base of Suppliers to show and market merchandise to a large and fragmented worldwide Buyer base, as well as establish pricing for them.

For buyers, their portal is a multi-currency, multi-lingual one-stop shop that allows them to explore and book travel for places all over the world in a variety of travel segments, including leisure & business travel.

Journey

The birth of India’s three biggest low-cost carriers occurred in the mid-2000s. As a result of this unparalleled aviation growth, India has risen to become the globe ‘s third biggest domestic aviation market.

The TBO platform was created in 2006 as a technology solution to make it easier for travel agencies to purchase airline tickets across numerous carriers. The travel sector is fragmented, and technology use is low.

They ‘ve been able to expand into a worldwide company by sticking to their purpose of using technology to empower the tourism sector.

Over 100 nations are served by their Buyers and Suppliers. In India, they are placed second in the Billing and Settlement Plan India market, with a gross market share of 12.12% in 2021.

Market Opportunity

They play at the heart of the $9.2 trillion worldwide travel and tourism business, combining supply and demand and uniting Suppliers to Buyers and vice versa.

The hospitality and tourism sector is among the biggest in the world, accounting for around 10.4% of global GDP in 2019 and growing at a CAGR of 6.1 percent between 2016 and 2019.

While the global pandemic had a significant impact on the business, it is predicted to fully recover by 2023, surpassing pre-COVID-19 levels and reaching US$ 11.5 trillion by 2024.

Global tourism has grown rapidly since the beginning of the century.

TBO Tek IPO

TBO Tek Limited, headquartered in Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 2,100 crore on 24 December 2021.

The offer includes a fresh issue of INR 900 crore and there is offer for sale (OFS) of 1,200 crore value equity shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement of 180 crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	913.02	576.16	793.00	826.25
Total Revenue	185.87	176.55	588.34	445.76
Profit After Tax	17.74	(34.14)	72.93	26.33

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	2.53	2.53	3
Financial Year 2020	7.00	7.00	2
Financial Year 2019	(3.28)	(3.28)	1
Weighted Average	1.12	1.12
30 Sep. 2021	1.70	1.70

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel the following are among the specific factors that go into determining the Offer Price:

• Platform enhancing value proposition for clients by creating a network impact with interconnected flywheels.
• A proprietary technological platform that is modular and adaptable, enabling for the inclusion of additional business lines, markets, and travel goods.
• Large data assets can be generated and leveraged.
• Enterprise-wide decision-making based on data.
• The company is run by the founder and is supported by a seasoned expert management team with extensive travel and technological experience.
• With a mixture of significant growth and profitability, this is a capital-efficient business strategy.

Peer Comparison

There are no publicly traded firms in India that operate in a similar industry to theirs. As a result, providing an industry comparison in regard to their Company is not feasible.

TBO IPO Details

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Issue Type	Book Building
Face Value	1 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	2,100
Fresh Issue	900 Crore
Offer for Sale	1,200 Equity Shares

TBO Tek IPO Date

TBO Tek IPO opening date is May 2021, and the closing date is May 2021. The TBO Tek limited issue may list in May 2021.

IPO Opening Date	May 2021
IPO Closing Date	May 2021
Basis of Allotment Date	May 2021
Initiation of Refunds	May 2021
Credit of Shares to Demat Account	May 2021
IPO Listing Date	May 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

TBO Tek Limited IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of TBO IPO.

TBO Tek IPO GMP

TBO Tek IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
May 2021
May 2021
May 2021
May 2021
May 2021
May 2021
May 2021
May 2021
May 2021
May 2021
May 2021
May 2021

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

TBO Tek IPO Review

TBO IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of TBO Tek IPO is good or bad.

TBO IPO Risk

• The new coronavirus pandemic has had and will continue to have a negative impact on their operations.
• Their revenue is mostly generated from the global travel and tourist industry, and anything that adversely affect that sector could have a significant negative impact on their operations.
• Their business is dependent on their partnerships with a diverse group of vendors.
• Their company is under pricing pressure from their vendors.
• They may incur costs that they are unable to pass on to their Buyers, including some that are beyond their control.
• They generate a large amount of their revenue from a small number of markets outside of India.

Other Threats

• Their inability to successfully manage their expansion and growth could have a significant negative impact on their company prospects.
• They face credit risk from their supplier and their customers, and the recoverability of their trade debts is doubtful.
• For crucial business functions, they rely on their own technology.
• A severe outage on their website or system could harm their brand and lead to a loss of clients, putting their business at risk.
• They are exposed to the dangers of internet payment methods.
• Exchange rate changes may have a negative impact on their results of operations because a portion of their revenues is based on foreign currency.

TBO Platform

They handle concerns like discovery, stability, transactions, and service by bringing together global travel supply and demand on one portal and allowing them to transact in real time.

They use direct connectivity or third-party aggregators to gather supplies from hotels, airlines, car rental companies, transfer enterprises, cruise firms, and other sources.

Buyers are divided into two categories by them. Retail buyers are often small enterprises that operate independently, including travel agencies or travel advisors.

They explore, book, and pay for global travel supply via their retail selling platform. Enterprise Buyers, on the other side, include significant travel organisations like tour operators, and online travel organisations, and also digital native enterprises like ecommerce websites and super applications.

Buyers Benefits

Their platform’s comprehensive web and mobile-based system enables retail travel purchasers to run their businesses.

Their system enables Retail Buyers to access and book worldwide supply throughout all market segments, such as airlines, hotels, car transfers, and sight-seeing, at business-to-business (“B2B”) rates, with simple and free onboarding and no installation needs.

User access control, branch administration, online accounting, customisable vouchers, and other capabilities on their system enable a small or medium-sized travel business to automate and digitise a lot of their processes with no technology investment.

Retail Buyers provided 77.37 percent, 63.02 percent, and 74.86 percent of total GTV in Fiscal 2020 and 2021, correspondingly, and in the six months ended September 30, 2021.

TBO IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

TBO IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
May 2021	1
May 2021	2
May 2021	3

Management

Gaurav Bhatnagar and Ankush Nijhawan, the company’s founders, are guided by a management team with extensive industry experience. They continue to add seasoned people with industry and technological experience to their executive team.

They employed 12 executives to drive their growth and improve their competencies across departments and locations, for instance, even during the COVID-19 pandemic.

For example, in January 2021, they named Martin Jones as their Global Director of Sourcing, and in November 2021, they named Neera Chandak as their Firm Secretary and Compliance Officer.

They had 204 technical professionals engaged on sustaining and improving their platform as of October 31, 2021.

Promoter

• Ankush Nijhawan
• Gaurav Bhatnagar
• LAP Travel Private Limited
• Manish Dhingra

Promoters’s Holding

Pre Issue Share Holding	51.26%
Post Issue Share Holding

TBO Tek Prospectus