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Shares of TBO Tek will be listed on the bourses today. The company has fixed the price at ₹920, the upper end of the price band ₹875-920.
Analysts are expecting a healthy listing as the initial public offering of the global travel and tourism industry player, TBO Tek was subscribed 86.70 times.
The ₹1,551-crore IPO had received bids for 80,50,71,440 shares against 92,85,816 shares on offer.
Prashanth Tapse, Senior VP (Research), Mehta Equities, said: considering the strong subscription demand on the last day of the issue, and especially the QIB portion witnessing a huge subscribing demand of 125x, it indicates a good room for healthy listing gains in the range of 40-50 per cent
“We believe the healthy listing is justified as the company holds a strong position in the global travel and tourism industry which offers a comprehensive platform that creates significant value for both suppliers and buyers. We also believe TBO Tek has developed a capital-efficient business model with strong cash generation, bolstered by strategic acquisitions which has enabled them to expand its partner network, enhance capabilities and consolidate its position in key markets”
Both financials and ask valuations are reasonable by looking at industry growth, he further said
The portion for qualified institutional buyers (QIBs) got subscribed a whopping 125.51 times, while the category for non-institutional investors received 50.60 times subscriptions. The retail individual investors (RIIs) part got subscribed 25.74 times.
The initial public offer consisted of a fresh issue of up to ₹400 crore and an offer for sale of up to 1,25,08,797 equity shares.
The company said it proposes to utilise the net proceeds of the fresh issue portion of the offer for growth and to strengthen its platform by adding new buyers and suppliers. This will include ₹135 crore towards investment in technology and data solutions by the company, and ₹100 crore towards investment in its material subsidiary, Tek Travels DMCC, for on-boarding platform users, among others.
As part of the IPO, TBO Tek on Tuesday raised ₹696.5 crore from 47 anchor investors by allotting 75,70,807 shares at ₹920 each.
Key marquee investors include Abu Dhabi Investment Authority, Government Pension Fund Global (Norges), ICICI Prudential Mutual Fund, Kotak Mahindra Mutual Fund, Neuberger Berman, Nippon Mutual Fund, Nomura, SBI Mutual Fund.
Besides, Blackrock Global Fund, Axis Mutual Fund, Eastspring Investments, Fidelity Funds, Franklin India, Goldman Sachs, HSBC Global Investments, Invesco, Mirae Asset, SBI General and SBI Life Insurance, Tata Digital India Fund, White Oak Capital Fund, Aditya Birla Sun Life, Bandhan Large Cap, CANARA Robeco, Carmignac Portfolio, Dsp Multicap Fund, Edelweiss Mutual Fund, Kotak Mahindra Life, Max Life Insurance, Motilal Oswal, RBC Asia Pacific, Optimix Wholesale, and The Prudential Assurance also participated in the anchor book.
Axis Capital Ltd, Goldman Sachs (India) Securities Private Ltd, Jefferies India Private Ltd and JM Financial Ltd are the book-running lead managers of the issue.
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