TBO Tek files DRHP with SEBI for Rs.2,100 crore IPO
TBO Tek Ltd, a travel services provider, has filed draft red herring prospectus (DRHP) with SEBI for its proposed Rs.2,100 crore IPO. The IPO will comprise of a fresh issue of Rs.900 crore and an offer for sale of Rs.1,200 crore by the promoters and other early investors. The typical time required for DRHP approval ranges from 2-3 months.
Ahead of the IPO, TBO Tek may also look at a pre-IPO placement of Rs.180 crore to select investors. If the pre-IPO placement goes through successfully, then the IPO size would be reduced proportionately. This is distinct from the anchor placement of shares, that will typically happen a day ahead of the IPO opening.
The OFS part is intended to give an exit to early shareholders and partial exit to promoters. the fresh issue component of Rs.900 crore will be utilized to grow and strengthen the existing platform by adding more buyers and suppliers on the platform. TBO Tek will use part of the fresh issue proceeds to bankroll inorganic expansion plans.
TBO stands for Travel Boutique online and it basically functions as a B2A (Business to Administration) travel portal which enables partners to serve their customers efficiently and more effectively. Currently, TBO has over 70.000 customers spread across 53 offices in various parts of India.
TBO focuses on providing best pricing for domestic and global holiday packages. The online hotel product of TBO has dominated both in inventory and pricing and TBO Tek has today emerged as the largest B2A player in the travel segment in India.
Another important areas that TBO operates is the white label, API and travel app development solutions. TBO has its own team of high-end engineers, designers and programmers who handles this task. Many of the solutions are to a limited audience and hence are not too cyclical.
The book running lead manages to the IPO will be Axis Securities, Credit Suisse Securities, Jefferies India and JM Financial.
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